Corporate Tax

The Saskatchewan Small Business tax rate was temporarily reduced to 0%, effective October 1, 2020. This rate will be increased to 1%, effective July 1, 2022. The following combined federal and provincial tax rates apply to corporations operating a fixed place of business in Saskatchewan:

• Income of a Canadian Controlled Private Corporation (CCPC) below $500,000 – 9.0% (increasing to 10% on July 1, 2022)
• Income of a CCPC above the small business limit – 27.0%.
• Income of non-CCPCs – 27.0%.
• Investment income – 50.7%.

Monthly or quarterly corporate tax installments are required when tax payable exceeds $3,000 in the prior year. Taxes that remain outstanding three months after year-end are subject to interest.

Tax Incentives

Corporations operating in the manufacturing and processing (M&P) industry can reduce corporate tax on eligible profits by up to 2%. The percent reduction is determined by the allocation of this income to Saskatchewan. Eligible corporations can also claim a tax credit where the number of eligible full-time employees has increased by 25% or more since 2014. In addition, investment tax credits are available for purchases of new and some used M&P equipment.

Other provincial tax incentives are available for primary steel producers, technology start-ups, research & development, investments in mineral exploration, commercial innovation, value-added agriculture capital expenditures, farm and small business capital gains, residential rental businesses, and political contributions.

GST

GST registration is required for corporations with a worldwide taxable income of more than $30,000. GST registrants must charge 5% on all non-exempt items and can claim an input tax credit (ITC) for GST paid or expenses related to a business’s commercial activities. GST registration is not required for corporations with taxable income less than $30,000, however, where such a small supplier has voluntarily registered, ITCs may be claimed on business expenses.

The business’s annual taxable income determines filing deadlines and can be annually, quarterly, or monthly.

PST

A 6% sales tax must be charged by corporations on taxable sales of goods and services purchased in Saskatchewan. Deadlines for filing are determined by the amount of tax to be reported and can be monthly, quarterly, or annually (see FAQ Provincial Sales Tax (PST) in Saskatchewan – Explained for further information).

Workers Compensation Board (WCB)

Corporations who employ or contract individuals and operate in industries covered under Saskatchewan’s legislation are required to register with and pay premiums to, the Workers’ Compensation Board. Registration must be completed within 30 days from the date of beginning work or hiring workers. Premiums are determined by the level of risk involved in the industry and the business’s prior claims history.