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Change will Save Manitoba Businesses Over $119 Million: Wowchuk
Change will Save Manitoba Businesses Over $119 Million: Wowchuk
Finance Minister Rosann Wowchuk has announced today is the last day businesses in Manitoba will pay the Manitoba general corporation capital tax.
Effective tomorrow, it will be eliminated.
“When we came into office, Manitoba businesses were burdened with the highest general corporation capital tax in the country. Our government recognizes the important role businesses play in our economy and in our communities. We continue to strive to make Manitoba a great place to do business and I am very pleased that our government will phase out this tax tomorrow. This will save Manitoba businesses $119 million annually beginning in 2011,” said Wowchuk.
On Dec. 1, Manitoba became the first province in Canada to permanently eliminate the small business income tax rate.
“Combined, these two tax cuts will significantly help our businesses keep more money, allowing them to reinvest in their companies,” added Wowchuk.
The general corporation capital tax was eliminated for manufacturers and processors, effective July 1, 2008, providing savings of $25 million annually, the minister said. “Our approach has been one that provides tax relief to businesses and all Manitobans while ensuring our government is able to deliver the front-line services that Manitobans need and count on.
Along with the elimination of the general corporation capital tax, 2011 will see additional tax measures including:
· A provision in the Research and Development Tax Credit of a five per cent refundable income tax credit and a 15 per cent non-refundable income tax credit for companies undertaking research and development in Manitoba. The five per cent refundable tax credit will provide companies with an estimated $6 million in additional tax savings.
· An extension of the Co-op Education and Apprenticeship Tax Credit to employers who hire high‑school students and post-secondary level 1 and 2 apprentices. The tax credit is equal to 10 per cent of the remuneration paid to an apprentice up to a maximum credit of $2,000, providing employers with an estimated $2.1 million in annual tax savings.
· As announced in Budget 2010, starting in 2011, expansion of the Manitoba Fitness Tax Credit to include young adults from 16 to 24. The annual cost of eligible fitness activities up to $500 can be claimed by young adults, a spouse or parent, providing tax savings of up to $54. For young adults with a disability for whom at least $100 is spent on qualifying fitness activities, the maximum annual tax saving is $108. Since 2006, Manitoba has paralleled the federal Childrens’ Fitness Tax Credit for children up to age 15. The Childrens’ Fitness Tax Credit provides $3 million in annual tax savings and the young adult Fitness Tax Credit will provide an estimated $1.2 million in tax savings.
· Budget 2010 also announced the extension of the following tax credits:
- the Interactive Digital Media Tax Credit,
- the Manitoba Film and Video Production Tax Credit, and
- the Small Business Venture Capital Tax Credit.
· And, as Manitobans begin to file their 2010 individual income tax returns in early 2011, they will be able to claim the Fertility Treatment Tax Credit for the first time.
“In total, the tax cuts delivered by our government since 1999 will save Manitoba families and businesses more than $1.1 billion each year including $455 million in personal tax savings, $269 million in property tax reductions and $422 million in business tax cuts,” said Wowchuk.
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