Something special is happening for entrepreneurs in Manitoba today, Manitoba will become the first province in Canada to have a zero per cent small business tax rate.
“This is terrific news,” said Catherine Swift, President of the Canadian Federation of Independent Business (CFIB). “Other provincial and territorial governments across Canada should take notice.”
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.
“This move is about supporting entrepreneurship. 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,” Swift added.
“We commend the Manitoba government on this move. While we want to help bring even more positive change for entrepreneurs in this province, this is certainly something to celebrate,” added CFIB’s new Manitoba Director, Janine Carmichael.
To further support entrepreneurship in Manitoba CFIB is calling on the government to bring fairness and competitiveness to the provincial personal income tax system; commit to reducing the burden of red tape; rein in spending; and make progress on reducing Manitoba’s debt
