Following legislative amendments which were introduced today, small businesses in Saskatchewan will soon have the highest income threshold in Canada.
Effective January 1, the provincial small business income threshold鈥攖he amount of income up to which small businesses pay tax at the much lower two per cent small business tax rate鈥攊s going up from $500,000 to $600,000.
鈥淪mall businesses are so vital to the health of the economy that our government decided to further enhance the Saskatchewan Advantage,鈥� Finance Minister Donna Harpauer said.聽 鈥淚ncreasing the income threshold to $600,000 provides Saskatchewan small businesses with an incentive to hire more workers and invest new capital right here in our province.聽 Meanwhile, rates for personal income tax in Saskatchewan continue to be reduced, which also helps create jobs.鈥�
Today鈥檚 amendments will implement business income tax initiatives that were announced in the October Throne Speech.聽 This includes returning Saskatchewan鈥檚 general corporate income tax rate to 12 per cent (a half-point increase), effective January 1, 2018鈥攎atching the rates of the other western provinces.
鈥淥nce implemented, Saskatchewan鈥檚 12 per cent corporate income tax rate will continue to be competitive and among the lowest in the country, maintaining our province鈥檚 advantages when attracting new investment and jobs,鈥� Harpauer said.
