By Brian Schultz
Small business owners in Manitoba will be breathing a sigh of relief today, as the small business tax rate in the province falls to zero percent.
Manitoba is the first Canadian province to wipe out the small business tax, which is made to help foster business growth.
“This move is about supporting entrepreneurship,” said Catherine Swift, president of the Canadian Federation of Independent Business (CFIB). “It allows small businesses to keep more of their profits and reinvest in their companies, their employees and their communities. But make no mistake — businesses in Manitoba still pay a host of taxes and contribute to the functioning of government. Nonetheless, this is a step in the right direction.”
Like the personal income tax system, all businesses pay a reduced provincial corporate income tax rate up to a provincial threshold, which varies between $400,000 and $500,000. After that threshold, the higher general corporate tax rate applies.