Manitoba's budget implementation bill (Bill 74), which enacts several tax measures that were introduced in the province's 2021 budget, received Royal Assent on October 14, 2021.
The corporate income tax measures included in Bill 74 are considered enacted for U.S. GAAP purposes on October 14, 2021, the date the bill received Royal Assent. These measures are considered substantively enacted under IFRS and Accounting Standards for Private Enterprise on October 6, 2021, the date the bill received first reading (as Manitoba has a majority government).
Corporate income tax measures
Manitoba Bill 74 includes the corporate tax measures announced in the province's 2021 budget. The bill makes changes to several existing tax credits, including measures to:
- Expand the Interactive Digital Media Tax Credit to include new eligible activities and make the credit permanent
- Increase the maximum annual deduction for the Small Business Venture Capital Tax Credit to $120,000 (from $67,500) and increase the maximum eligible investment to $500,000 (from $450,000)
- Suspend the 10% frequent filming bonus (which is part of the Film and Video Production Tax Credit) for filming interrupted by the COVID-19 pandemic, until the earlier of the first day after March 31, 2020 that principal photography of an eligible film took place and March 31, 2022
- Extend the Cultural Industries Printing Tax Credit by three years (instead of one year as announced in the budget) to December 31, 2024 (from December 31, 2021)
- Extend the Community Enterprise Development Tax Credit by one year to December 31, 2022 (from December 31, 2021)
- Make the Book Publishing Tax Credit permanent (previously scheduled to expire on December 31, 2024).
Indirect tax measures
Several indirect tax measures announced in the province's 2021 budget are also included in Bill 74 (e.g., certain online platform operators will be required to register, collect and remit retail sales tax (RST) on taxable sales facilitated through their platforms starting December 1, 2021). For further details, see TaxNewsFlash-Canada 2021-50, "Manitoba Expands RST Rules For Online Platforms".
For more information, contact your KPMG adviser.
Information is current to October 25, 2021. 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