Saskatchewan Business Tax Revamp Improves Outlook

Filed in archive Economic Outlook , Taxes on July 11, 2006

Saskatchewan business owners a bit more upbeat due to tax breaks announced in the April provincial budget. The new provincial budget will lower corporate income tax rates to 12 per cent from 17, increase the small business tax threshold to $500,000 from $300,000 and phase out corporation capital tax by 2008.

The elimination of the Capital Tax will put Saskatchewan at the same level as BC and Alberta with no Capital Tax come 2008. Plus raising the small business tax threshold to $500,000 will save $10,000 in small business taxes (5% in Saskatchewan). (calculation: $500,000 earnings X 5% = $10,000)

That is $10,000 of cold hard cash that normally would go to the Saskatchewan Government that can now be put to use in the business.