SK - Province Cuts Business Taxes
By CO Staff @canadaone | April 10, 2006
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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