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June 17, 2020
Canada: Saskatchewan issues budget 2020–21
On 15 June 2020, Saskatchewan Finance Minister Donna Harpauer tabled the province’s fiscal 2020–21 budget. The budget contains no new taxes or tax increases and introduces or extends tax incentives.
The Minister anticipates a deficit of CA$2.4 billion1 for 2020–21.
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 or the $600,000 small-business limit.
Saskatchewan’s 2020 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.
Personal income tax rates
The budget does not include any changes to personal income tax rates.
The budget includes the re-introduction of automatic annual indexation of the personal tax brackets beginning in 2021.
The 2020 Saskatchewan personal tax rates are summarized in Table B.
Table B – 2020 Saskatchewan personal tax rates
For taxable income in excess of $129,214, the 2020 combined federal-Saskatchewan personal income tax rates are outlined in Table C.
Table C – Combined 2020 federal and Saskatchewan personal tax rates
* The rate on capital gains is one-half the ordinary income tax rate.
** An additional federal basic personal amount may be available for individuals with taxable income below $214,368. The additional tax credit is $140 for individuals with taxable income below $150,474; this additional amount is gradually phased out for individuals with taxable income between $150,474 and $214,368, resulting in an additional 0.22% to 0.30% of federal income tax on taxable income in this bracket.
Provincial sales tax
Other tax measures
Chemical fertilizer taxation
Manufacturing and processing taxation
1. Currency references in this Alert are to CA$.
For additional information with respect to this Alert, please contact the following:
Ernst & Young LLP (Canada), Saskatoon