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SK - Province Cuts Business Taxes

By CO Staff @canadaone |

The government of Saskatchewan has announced what it says are the most significant tax cuts in the province's history that will result in $190 million in savings annually by the end of the four-year implementation strategy.

The cuts will begin immediately with the conversion of 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.

Highlights with target dates for implementation include:

  • July 1st, 2006: Eliminate the general CCT on new capital investments in Saskatchewan;
  • July 1st, 2006: Reduce CCT Resource Surcharge rates
  • By July 1st, 2008: Eliminate the general Corporate Capital Tax (CCT) on existing capital investments (except for provincial Crown corporations currently taxable);
  • By July 1st, 2008: 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
  • "Our new corporate tax structure will be one of the most competitive and business-friendly in Canada, ultimately leading to more job creation and employment opportunities for Saskatchewan's youth," said Saskatchewan Finance Minister Andrew Thomson.

    The business tax cuts are estimated to have a $95 million impact for 2006-07, increasing to $155 million the following fiscal year and $190 million annually by the end of the four-year implementation strategy.

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