Released on May 19, 2006
Amendments to Saskatchewan's capital tax and income tax legislation were officially passed in the Legislature today, formalizing significant tax changes to encourage business investment and job growth."Planned tax reductions scheduled for July 2006, July 2007 and July 2008 are now all fully legislated, providing certainty for businesses planning on making new investments in Saskatchewan," Finance Minister Andrew Thomson said.
This four-year, $620 million cut to business taxes was announced with the April 6th provincial Budget.
"We have now legislated the most significant and business-friendly business tax changes in Saskatchewan history, which will help our province attract investment and create jobs, especially for our youth," Thomson said.
Details of the business tax reforms are as follows:
• Eliminate the general Corporate Capital Tax (CCT) on existing capital investments by July 1st, 2008, except for provincial Crown corporations;
• Eliminate the general CCT on new capital investments in Saskatchewan on July 1st, 2006;
• Reduce CCT Resource Surcharge rates beginning July 1st, 2006;
• Reduce the Corporate Income Tax (CIT) rate from 17 to 12 per cent by July 1st, 2008;
• Increase the small business threshold from $300,000 to $500,000 by July 1st, 2008; and
• Immediately convert the non-refundable Investment Tax Credit (ITC) for Manufacturing and Processing into a refundable tax credit and extend the carry-forward for unused ITCs previously earned to 10 years.
"These changes are just another way our Government is helping ensure Saskatchewan is the best place in Canada to live, work and raise a family," Thomson said.
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For More Information, Contact:
| Mike Woods Finance Regina Phone: (306) 787-6578 Email: mwoods@finance.gov.sk.ca |