Canada: Tax measures enacted by 2021 budget bill (Manitoba)

Indirect tax measures, tax credits enacted as corporate income tax measures

Manitoba indirect tax measures, tax credits enacted as corporate income tax measures

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 14 October 2021.

Indirect tax measures

Several indirect tax measures announced in the province's 2021 budget are also included in Bill 74.

Specifically, certain online platform operators will be required to register, collect, and remit retail sales tax (RST) on taxable sales facilitated through their platforms starting 1 December 2021.

Tax credits enacted as 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 coronavirus (COVID-19) pandemic, until the earlier of the first day after 31 March 2020 that principal photography of an eligible film took place and 31 March 2022
  • Extend the cultural industries printing tax credit by three years (instead of one year as announced in the budget) to 31 December 2024 (from 31 December 2021)
  • Extend the community enterprise development tax credit by one year to 31 December 2022 (from 31 December 2021)
  • Make the book publishing tax credit permanent (previously scheduled to expire on 31 December 2024).

Read an October 2021 report prepared by the KPMG member firm in Canada

*$ = Canadian dollar

 

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