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 $425,000 for 2014.
- Regarding the accelerated capital cost allowance (CCA) for machinery and equipment: the CCA offers a 30 per cent rate for 2014 and subsequent years.
- 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 under an eligible contract with a qualifying research institute in Manitoba.
- A journeypersons hiring incentive (through the Co-op Education & Apprenticeship Tax Credit) is available to employers hiring recent apprenticeship graduates. The credit is equal to five per cent of each journeyperson’s salary/wages (net of other government assistance) up to $2,500 for each of the first two 12-month periods of permanent full-time employment.
- The Manufacturing Investment Tax Credit provides a 10 per cent tax credit 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 has been extended to December 31, 2016. 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 new 30 per cent tax credit based on production costs incurred and paid for (i.e., 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.
- The Book Publishing Tax Credit provides a refundable income tax credit equal to 40 per cent of eligible Manitoba labour costs and a 10 per cent bonus for all books printed on forest-friendly paper. It has been extended to December 31, 2017.