close
Share with your friends

Canada: Expected tax measures include small business tax rate reduction (Saskatchewan)

Canada: Expected tax measures in Saskatchewan

Saskatchewan has a newly elected majority government. Reviewing the election platform may provide some insight on what tax changes may be coming in the near future.

1000

Related content

During the election, the governing party promised to temporarily reduce the province's small business income tax rate; to introduce a new home renovation tax credit; and to restart the “active families benefit.” The government has not yet introduced any of these promised measures.


Small business income tax rate reduction

The government’s election platform proposed to temporarily reduce the province's small business income tax rate for the next three years, according to the following schedule:

  • Reduce the small business income tax rate to 0% (from 2%) beginning 1 October 2020
  • Increase the small business income tax rate to 1% (from 0%) beginning 1 July 2022
  • Increase the small business income tax rate back to its current rate of 2% (from 1%) beginning 1 July 2023


New home renovation tax credit

The election platform also proposed to introduce a new home renovation tax credit to allow homeowners to claim a 10.5% non-refundable tax credit on up to $20,000* of eligible home renovation expenses on their primary residence incurred between 1 October 2020 and 31 December 2022.

*$=Canadian dollar


Benefit for “active families”

Another measure in the election platform would reinstitute the “active families benefit”—an income-tested refundable tax credit providing up to $150 annually per minor child to eligible families who pay fees to register children and youth in eligible sports, recreational, and cultural activities.

Read a November 2020 report prepared by the KPMG member firm in Canada

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor 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 on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal