Small business tax, corporation capital tax to be eliminated in 2010
Businesses in Manitoba will benefit as the province eliminates the small business tax and fully phases out the general corporation capital tax (CCT) in 2010, Finance Minister Rosann Wowchuk has announced.
“Despite difficult financial times, we are committed to continuing our planned reductions to help grow the economy and keep Manitoba well positioned to weather the effects of a global economic slowdown,” said Wowchuk. “We will continue to make investments that improve the quality of life for Manitobans and ensure our province is an affordable place to live and raise a family.”
The CCT rate falls to 0.2 per cent for large non-financial corporations with fiscal years starting after Jan. 1 and no general corporation capital tax will be paid in respect of any period after Dec. 31, 2010.
“By cutting out the small business tax, Manitoba will become the first income-tax-free zone for small corporations in 2010,” said Wowchuk. “These changes reflect the final steps in a commitment to eliminate the small business tax. The rate sat at eight per cent in 1999.”
Other changes, effective Jan. 1:
• The 20 per cent Research and Development Tax Credit becomes refundable for eligible work conducted by a Manitoba company in conjunction with a Manitoba research institution in priority research areas such as biotechnology.
• The Manitoba Mineral Exploration Tax Credit (a personal income-tax credit) will rise to 30 per cent from 20 per cent for agreements entered into after April 1, 2010. The new rate is triple what it was in March 2009.
• The Odour Control Tax Credit, scheduled to expire at the end of this year, has been extended to the end of 2011. This credit helps businesses invest in equipment to manage nuisance odours.
Complete tax information is available online.
