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March 8, 2019
Canada: Manitoba issues budget 2019/20
On 7 March 2019, Manitoba Finance Minister Scott Fielding tabled the province’s fiscal 2019/20 budget. The budget contains several tax measures affecting individuals and corporations.
The Minister anticipates a deficit of CA$360m1 for 2019/20.
The following is a brief summary of the key tax measures.
Business tax measures
Corporate tax rates
No changes are proposed to the corporate tax rates.
Manitoba’s 2019 corporate tax rates are summarized in Table A.
Table A – Corporate tax rates
* The small business rate is based on a 31 December year end.
** The federal small business rate was reduced from 10.00% to 9.00% effective 1 January 2019.
Other business tax measures
The Minister proposed the following business tax measures:
Manufacturing investment tax credit
?Effective for qualifying property acquired after 30 June 2019, the refundable portion of the credit is reduced from 8% to 7%. The non-refundable portion of 1% remains unchanged.
Business tax credit extensions
The budget has extended the following tax credits:
Personal income tax measures
Personal income tax rates
The budget does not include any changes to personal income tax rates.
The 2019 Manitoba personal tax rates are summarized in Table B.
Table B: 2018 Manitoba personal tax rates
For taxable income in excess of $95,259, the 2019 combined federal-Manitoba personal income tax rates are outlined in Table C.
Table C: Combined 2019 federal and Manitoba personal tax rates
* The rate on capital gains is one-half the ordinary income tax rate.
Personal tax credits
This budget proposes changes to the following personal credits/amounts:
Basic personal amount
Other tax measures
Retail sales tax rate
Expanded fuel tax exemption for the forestry industry
Effective 1 June 2019, the exemption will be expanded to include mill site equipment operated for log handling and processing.
Federal tax on split income (TOSI) rules
Administrative and technical tax measures
As part of the Manitoba Government’s ongoing efforts to increase efficiency and reduce administrative burden, commencing in 2020:
1. Currency references in this Alert are to CA$.
For additional information with respect to this Alert, please contact the following:
Ernst & Young LLP (Canada), Winnipeg