Saskatchewan 2017 Budget Highlights
Kevin Doherty is presenting his 2017 Budget with the following highlights:
Saskatchewan Personal Income Tax Changes
Personal Income Tax Rates
The budget proposes to reduce the tax rate on each of Saskatchewan’s three personal income tax brackets by 0.5%, effective July 1, 2017, and another 0.5% reduction effective July 1, 2019
Beginning July 1, 2017, the tuition and education credit provided those attending postsecondary education will be eliminated. Credits carried forward from previous taxation years will remain available but no new credits can be earned.
Employee Tools Tax Credit
Effective for the 2017 taxation year budget proposes removing the Saskatchewan employee’s tools tax credit.
Low-Income Tax Credit
Increased Saskatchewan Low-Income Tax Credit amounts:
• increasing the maximum basic adult component and the spousal/equivalent from $246 to $346;
• increasing the child component from $96 to $136 per child, to a maximum of $272 per family; and
• increasing the benefit clawback rate from 2.0% to 2.75%.
Saskatchewan Corporate Business Tax Changes
Corporate Income Tax Rates
The general corporate income tax rate will be reduced from the current 12% to 11.5% effective July 1, 2017, and then to 11% effective July 1, 2019.
Saskatchewan Commercial Innovation Incentive
the Saskatchewan Commercial Innovation Incentive will reduce the general corporate income tax rate to 6% on taxable income earned from the commercialization of qualifying intellectual property in the province for a 10 year period.
Saskatchewan Research and Development Tax Credit
the government is proposing a new 10% refundable component of the Saskatchewan Research and Development Tax Credit (SRDTC). The refundable component of the credit will be limited to the first $1 million in annual qualifying expenditures incurred in Saskatchewan by a Canadian-controlled private corporation.
M&P Investment Tax Credit
The Saskatchewan M&P Investment Tax Credit rate increases from 5% to 6% of eligible capital acquisitions made on or after March 23, 2017.
Capital Tax Rate on Large Financial Institutions
Effective April 1, 2017, the tax rate for Corporations which have paid capital in excess of $10,000,000 is proposed to increase from 3.25% to 4%.
Provincial Tax Preference for Credit Unions
Beginning in 2017, preferential rate treatment for credit unions is proposed to be phased out over four years.
Saskatchewan Provincial Sales Tax
Saskatchewan Sales Tax Rate
The PST is being raised from 5% to 6%.
Change in Exemptions
PST exemptions for children’s clothing, restaurant meals, and snack food are proposed to be eliminated.
Expansion of Sales Tax Base
Insurance premiums including life, accident, health, property, vehicle, liability, casualty, and agricultural insurance with payment due after July 1, 2017 will be added to the PST base.
for contracts entered into on or after April 1, 2017, PST is proposed to be payable on contracts for the repair, renovation or improvement of real property.
First Home Plan
Recent graduates will no longer be eligible for an interest-free down payment loan up to $10,000, when purchasing their first home in Saskatchewan.
Purchase of Bulk Fuel
The exemption for bulk purchases of gasoline to be eliminated and a reduction in the exemption for bulk purchases of diesel fuel to 80% of purchases.
Tax on Cigarettes
Tobacco tax rates increasing from $0.25 to $0.27 per cigarette.
Increase cost of liquor
Increase in Education Taxes
Education property tax increases.
If you require a more in-depth explanation contact us or see the Saskatchewan Ministry of Finance’s website.