All resident corporations (except tax-exempt Crown corporations, Hutterite colonies and registered charities) have to file a corporation income tax (T2) return with the Canada Revenue Agency every tax year even if there is no tax payable. This includes:
- non-profit organizations;
- tax-exempt corporations; and
- inactive corporations.
Corporations with a permanent establishment in Saskatchewan must calculate and remit Saskatchewan corporation income tax in addition to federal income tax. This is levied as a percentage of the share of a corporation's taxable income that is allocated to the province.
More information on filing corporation income tax is available through the Canada Revenue Agency
Tax Rates
Small Business Rate
Saskatchewan small businesses, defined as Canadian-controlled private corporations, pay a reduced rate (commonly known as the small business rate) of 2% on the first $600,000 of eligible business income earned.
As announced on August 23, 2022, Saskatchewan's small business corporate income tax rate will temporarily remain at 0% until June 30, 2023. The restoration of the rate to 1% per cent will be delayed to July 1, 2023, and on July 1, 2024 the rate will return to 2%.
As of January 1, 2018, the small business income threshold increased from $500,000 to $600,000.
Changes to the rate and income threshold are pro-rated for corporate taxation years that straddle effective dates.
General Rate
The general tax rate applies to all income not eligible for the small business rate. Effective July 1, 2017, the general rate of corporation income tax decreased from 12% to 11.5%. Effective January 1, 2018, the general rate of corporation income tax increased from 11.5% back to 12%.
The tax rate changes are pro-rated for corporate taxation years that straddle the effective dates.
Manufacturing and Processing Rate Reduction
Corporations involved with manufacturing and processing (M&P) activities receive a tax reduction of up to two percentage points, depending on the extent of the company's presence in the province.
| Saskatchewan's Corporation Income Tax Rates | ||||
| Jan. 1, 2018 to Sept. 30, 2020 |
Oct. 1, 2020 to June 30, 2023 |
July 1, 2023 to June 30, 2024 |
July 1, 2024 and onward |
|
| General | 12.0% | 12.0% | 12.0% | 12.0% |
| M&P Profits | 10.0% | 10.0% | 10.0% | 10.0% |
| Small Business | 2.0% | 0.0% | 1.0% | 2.0% |
| SB Threshold | $600,000 | $600,000 | $600,000 | $600,000 |
Tax Incentives
Corporations may also qualify for other Saskatchewan tax credits in support of investments in manufacturing and processing, and research and development.