Manitoba's budget implementation bill received Royal Assent on June 3, 2019. Bill 16 includes income tax measures that were introduced in the Manitoba's 2019 provincial budget.

The corporate income tax measures in Bill 16 are considered substantively enacted for IFRS and Accounting Standards for Private Enterprise (ASPE) purposes on March 7, 2019, the date it received first reading, as Manitoba has a majority government. The corporate income tax measures in Bill 16 are considered enacted for U.S. GAAP purposes on June 3, 2019, the date the bill received Royal Assent.

Corporate tax measures
Bill 16 includes a corporate tax measure that reduces the refundable portion of the Manufacturing Investment Tax Credit to 7% (from 8%), effective for qualifying property acquired after June 30, 2019. The non-refundable portion remains at 1%. Among other measures, this bill also extends the following credits:

• The Film and Video Production Tax Credit, which is now permanent and was previously set to expire on December 31, 2019
• The Small Business Venture Capital Tax Credit, which is extended to December 31, 2022 (from December 31, 2019)
• The Cultural Industries Printing Tax Credit, which is extended to December 31, 2020 (from December 31, 2019), and caps the annual maximum tax credit claim at $1.1 million per taxpayer, effective for taxation years ending on or after March 7, 2019
• The Book Publishing Tax Credit, which is extended to December 31, 2024 (from December 31, 2019).

Other tax measures
Bill 16 also includes other tax measures announced in Manitoba's 2019 budget, including:

• A decrease in Manitoba's general retail sales tax rate to 7% (from 8%, effective July 1, 2019) (see TaxNewsFlash-Canada 2019-27, "Manitoba - Prepare for RST Reduction Transitional Rules")
• An exemption from Manitoba's general retail sales tax for the federal carbon tax, effective April 1, 2019
• Clarifying updates to the paid work experience tax credit where the employer is a partnership
• Consequential changes to parallel the federal tax on split income (TOSI) rules for the purposes of various non-refundable tax credits.

For more information, contact your KPMG adviser.

Information is current to June 11, 2019. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500