Taxation changes coming into effect in 2016 will reduce the amount of taxes paid by regular, middle-class Manitobans and small businesses across the province.
“We believe in reducing taxes to help hard-working Manitobans, like seniors and small business owners, get ahead,” said Premier Selinger. “The changes coming into effect mean that seniors will have more money in their pocket in their retirement, and that Manitoba’s job creators will certainly reduce the burden on families and businesses, freeing up assets that can be used for other priorities.”
Changes coming into effect in the new year include increasing the small business income limit eligible for the zero per cent corporate income tax rate to $450,000 from $425,000, effective tomorrow.
The premier noted that in 2010, Manitoba was the first province to permanently eliminate the small business tax. About 14,000 corporations pay no Manitoba corporate income tax because of the zero per cent rate, which the premier said will increase to 16,000 corporations in 2016 following the implementation of the new limit.
In addition, the Manitoba government is providing more support to seniors by reducing the school taxes seniors pay. In 2016, the maximum seniors’ school tax rebate will increase to $2,300 from $470, providing savings of up to $47.8 million for Manitoban seniors.
“This change means approximately 98 per cent of qualifying seniors will no longer pay school taxes,” said Premier Selinger.
The premier added the seniors school tax rebate will be capped to ensure that two per cent of seniors with high-valued homes still pay some school taxes.
Seniors can start applying for the tax rebate when they receive their property tax statement from their local municipality, which is expected to commence in May. To qualify for the rebate, seniors must:
- own or occupy and live in their house;
- be at least 65 years of age; and
- pay school taxes not already fully covered by the basic Education Property Tax Credit.
Applications are available by calling the tax assistance team at 204-945-7555 in Winnipeg or at 1-855-893-8266 (toll-free). The deadline to apply for the 2015 rebate is March 31.
In addition, data-processing investment, cultural industries printing and nutrient management tax credits that were scheduled to expire at the end of 2015 will be extended for three years, the premier said. He noted the extensions allow the business community added certainty the tax credits will continue to be offered, allowing them to plan for future investments.
For more information on taxation in Manitoba, visit www.gov.mb.ca/finance/taxation.
