Tax Break for Small Business in Manitoba

Tax changes in Manitoba will make the province “the first income-tax free zone for small businesses,” according to Finance Minister Rosann Wowchuk.

The province will eliminate the small business tax and phase out the general corporation capital tax (CCT) in 2010, Wowchuk confirmed December 30. “Despite difficult financial times, we are committed to continuing our planned reductions to help grow the economy and keep Manitoba well positioned to weather the effects of a global economic slowdown,” she said in a statement outlining the changes.

Under the amendments, the CCT rate falls to 0.2% for large, non-financial corporations with fiscal years beginning January 1, and no general corporation capital tax will be paid after December 31, 2010.

Wowchuk said the shift “reflect the final steps in a commitment to eliminate the small business tax. The rate sat at eight per cent in 1999.”

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