Committed to Staying Competitive
The City of Winnipeg and the Government of Manitoba are committed to enhancing an already competitive and balanced corporate tax environment. Winnipeg’s strong economic performance and the Manitoba government’s commitment to economic growth have resulted in a favourable business and personal tax environment for the past decade.
- The basic provincial corporation income tax rate of 12 per cent started in 2010, with reductions planned for the future.
- As of December 1, 2010, the small business income tax was eliminated. As well, the small business limit has been raised to $450,000 for 2016.
- The accelerated capital cost allowance (CCA) for machinery and equipment provides manufacturers with a 50 per cent rate on a declining-balance basis for eligible assets acquired after 2015 and before 2026.
- The corporation capital tax was eliminated for all corporations (except banks, trust and loan corporations and Crown corporations) as of December 31, 2010.
- A fully refundable 20 per cent research and development tax credit is offered for scientific research and experimental development expenditures made before April 12, 2017 and 15 per cent for eligible expenditures made after April 11, 2017 under an eligible contract with a qualifying research institute in Manitoba.
- Paid Work Experience Tax Credits are a group of programs that help employers create work experience opportunities for students in Manitoba. Two incentive programs exist for employers who hire students and/or graduates from registered cooperative education programs. Employers who hire a student as part of a registered cooperative education program can claim 15 per cent of wages and salaries, up to a maximum of $5,000 per student. Employers who hire and retain a graduate from a registered cooperative education program can claim up to 15 per cent of wages and salaries in each of the first two full years of employment, to a maximum of $2,500 per graduate.
- The Manitoba Manufacturing Investment Tax Credit provides a 10 per cent tax credit (for eligible property acquired on or before April 11, 2017) or 9 per cent tax credit (for eligible property acquired on or after April 12, 2017) applicable against payable Manitoba corporate income tax. This credit is for new and used manufacturing buildings, machinery and equipment used directly in the manufacturing process on qualified investments by December 31, 2017.
- The Manitoba Film and Video Production Tax Credit is scheduled to expire at the end of 2018. Production companies commencing principal photography may elect to claim either the maximum 65 per cent film tax credit based on eligible labour costs or they can opt for a 30 per cent tax credit based on production costs incurred and paid, for labour, goods and services provided in Manitoba directly attributable to the production.
- The Interactive Digital Media Tax Credit is intended to help develop and produce interactive digital media projects in Manitoba. Eligible companies may receive a refundable corporate income tax credit equal to 40 per cent of labour costs on qualifying projects. This tax credit has been extended to December 31, 2022.
- The Book Publishing Tax Credit provides a refundable income tax credit equal to 40 per cent of eligible Manitoba labour costs. To promote environmental sustainability in the industry, an additional 15 per cent bonus is available for all books printed on paper with a minimum of 30 per cent recycled content. It has been extended to December 31, 2018.