Skip to main content

Entrepreneurs in Manitoba are celebrating the holiday season a little earlier this year.

On Dec. 1, the province will become the first in Canada to have a 0 per cent small-business tax rate, according to the Canadian Federation of Independent Business (CFIB).

Along with the federal corporate income tax rate of 11 per cent, all Canadian small-business owners pay a reduced provincial tax rate up to a threshold, which varies between $400,000 and $500,000. Above that threshold, a higher provincial corporate tax rate applies.

Story continues below advertisement

In 1999, Manitoba had a tax rate of 8 per cent - the second highest in the country. Today it's the lowest.

"It's a significant saving for small business owners," said Rosann Wowchuk, Manitoba's Finance Minister and the province's Deputy Premier. "We pleased to be taking a lead in the country."

"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," said Catherine Swift, president of the CFIB.

While provinces like Ontario, Alberta and Saskatchewan hover around a 3 per cent to 4 per cent small-business tax rate, Manitoba set a new standard by slashing its rate to nothing.

The race to zero has been years in the making, said CFIB's new Manitoba director Janine Carmichael, and it's the result of careful planning on the part of her organization as well as the government.

"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 Ms. Carmichael.

British Columbia is planning to eliminate its small business tax rate in April of 2012.

Report an error
Comments

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • All comments will be reviewed by one or more moderators before being posted to the site. This should only take a few moments.
  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed. Commenters who repeatedly violate community guidelines may be suspended, causing them to temporarily lose their ability to engage with comments.

Read our community guidelines here

Discussion loading ...

Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.
Cannabis pro newsletter