Corporate Income Tax
Saskatchewan levies provincial corporate income tax under the terms of a tax collection agreement with the federal government (as do other provinces and territories with the exception of Quebec and Alberta). Under the tax collection agreement, the federal government administers the provincial income tax system using the same determination of a corporation's taxable income for both federal and provincial tax purposes.
Saskatchewan's corporate income tax is levied as a percentage of the share of a corporation's taxable income that is allocated to the province. The 2017-18 Budget announced that the Saskatchewan general tax rate on corporate taxable income declines from 12% to 11.5% effective July 1, 2017 and from 11.5% to 11% effective July 1, 2019. The tax rate reduction will be pro-rated for corporate taxation years that straddle the effective dates. Saskatchewan's general tax rate on corporate taxable income is 12%.
Saskatchewan small businesses, defined as Canadian-controlled private corporations, pay a reduced rate (commonly known as the small business rate) of 2% on the first $500,000 of eligible business income.
In addition to the tax reduction for small businesses, Saskatchewan provides corporations involved in manufacturing and processing (M&P) a reduction of up to 2 percentage points on M&P profits, depending on the extent of the company's presence in the province.
The 2015 Budget introduced a new growth tax incentive for manufacturing exporters hiring new manufacturing staff or head office staff. The Budget also introduced a corporation income tax rebate for capital investment in primary steel production.
Saskatchewan's Corporate Income Tax Rates
*The M&P profits reduction is calculated by applying the qualifying reduction rate against eligible M&P income. The qualifying reduction rate is determined by multiplying a corporation's Saskatchewan allocation percentage by the maximum reduction allowance. Eligible Saskatchewan M&P income is determined as the Saskatchewan share of a corporation's national M&P income.
The Saskatchewan corporate income tax system is administered on the Province’s behalf by the Canada Revenue Agency in conjunction with the administration of the federal income tax system. Provincial corporate income tax forms are produced and distributed by the Agency.
For further information about Saskatchewan corporate income tax, please contact:
Canada Revenue Agency
Saskatchewan-based manufacturing and processing firms are eligible for a reduced corporate income tax rate.
Information on the refundable income tax credit designed to encourage plant and equipment investment in Saskatchewan.
The 2015 Budget introduced a non-refundable tax credit targeted to the creation of new jobs by manufacturers and processors in support of the goal to double Saskatchewan's exports by 2020.
The 2015 Budget introduced a tax rebate to encourage new investment in primary steel production.
The Research and Development (R&D) Credit encourages R&D activity in Saskatchewan.
Rental Housing Rebate or Corporate Income Tax Rebate on New Rental Housing (CITR program) is designed to encourage investment in new rental housing units.
The Royalty Tax Rebate (RTR) helps to offset the provincial portion of income taxes that are payable as a result of the federal government's decision to disallow provincial royalties and similar taxes as deductions in determining taxable income.
Copies of the Income Tax Act, The Income Tax Act, 2000 and associated provincial regulations are available through the Queen's Printer of Saskatchewan.
Copies of the federal Income Tax Act and associated federal regulations are available through the Government of Canada, Ministry of Justice.