North Eastman Region

Taxation
 

For More Information:

Taxation Information Guide of the Canada Business Service Centre
or:

Province of Manitoba
For information on Special Tax Reductions, Incentives or Changes for Selected Industries
contact the Manitoba Tax Assistance Office: 1-800-782-0771

Government of Canada                                                      
Excise and Goods and Services Tax Office (G.S.T.) 1-800-959-5525
General Inquiries - Income Tax at: 1-800-282-8079 

Real Estate Taxes
Contact the Provincial Land Titles Office at (204) 945-2042

 

Canada Customs and Revenue Agency

Business Window
2nd Floor, 325 Broadway, Winnipeg, MB R3C 4T4
Phone: 1-800-959-5525 (in Canada) or (204) 983 1797 (from outside Canada - call collect)
Fax: (204) 984 6752
Provides one-stop service at the counter, by telephone or fax, for the four Business Number (BN) accounts (corporate income tax, importer/exporter account number, payroll deductions and GST). Business Window staff can also put business clients in touch with the right contact for other Revenue Canada business programs.
 

Taxation Overview

 Major Taxes Levied by the Government of Canada

Personal Income Tax

Corporate Income Tax - Income of corporations includes all returns derived from carrying on business or holding property

Corporate Income Surtax

Goods and Services Tax - Tax is levied on goods and services in Canada unless specifically exempt

Excise Taxes - These taxes consist of ad valorem taxes levied on the same price or duty-paid values as the general sales tax and of specific taxes of certain products

Large Corporations Tax - Tax on taxable capital creditable against surtax

 

 Major Taxes Levied by the Province of Manitoba

Personal Income Tax

Personal Income Tax Surtax

Personal Net Income Tax

Corporate Income Tax

Capital Tax - Tax levied on their taxable paid-up capital corporations operating within the province

Health and Post secondary Education (Payroll) Tax

Retail Sales Tax - tax at the retail level of a wide range of consumer goods and services purchased or brought into the province.

Motive and other Fuel Taxes

Tobacco and Alcoholic Beverages Taxes

 

 Taxes Levied by local Municipal Government

Real Property Taxes

Business Taxes
In the North Eastman region, many municipalities waive business taxes as a means of encouraging business development.
 

 Overview of Taxes
 

In Canada, all three levels of government - federal, provincial or territorial, and municipal - levy taxes on both individuals and businesses. The federal government levies an income tax, capital tax, excise tax, customs duties and a consumption tax. The provincial and territorial governments impose income tax, retail sales tax, capital tax, payroll taxes and taxes or royalties on natural resources. At the municipal level, there are property taxes and school taxes.

 Corporate Income Tax

1. The general federal rate is going to be reduced from 26.12% to 24.12% in 2003 and to 22.12% in 2004.

2. The small business deductions above are only applicable to Canadian-controlled private corporations that have 90% of their active business in Canada. The rate of 13.12% applies to the first $200,000, 22.12% for the next $100,000 and 26.12% beyond $300,000.

3. The provincial small business rate of 5.0% only applies up to $300,000 and then the rate increases to 16.5%. This threshold will increase in the following years:

4. The general provincial rate of 16.5% is being reduced by 0.5% per year:

 Goods and Services Tax

Canada Customs and Revenue Agency provides a publication online called “Doing Business in Canada – GST/HST Information for Non-Residents”. This guide explains how the Canadian goods and services tax / harmonized sales tax (GST/HST) applies to non-residents doing business in Canada. It provides:

• What the GST is and how it works
• Guidelines for determining whether you are carrying on business in Canada
• Information on GST/HST registration requirements
• Detailed information about GST/HST as it applies to specific business activities carried on by non-residents of Canada

To view this document, go to: Doing Business in Canada - GST/HST Information for Non-Residents (available in html and pdf format)

 Excise Duties and Taxes

The federal government also levies excise duties and taxes on a number of specific goods and services including: gasoline, aviation gasoline, diesel fuel, beer, spirits, wine, cigarettes and tobacco, and jewellery. Excise duties and taxes are levied as either a specific amount per item or as a percent of value.
 

For current rates of excise taxes for 2001, go to: Excise taxes

 Corporation Capital Tax

Corporation capital tax is a tax on annual paid-up capital of corporations (including associated corporations) which have a "permanent establishment" in Manitoba. Paid-up capital generally includes capital stock, surpluses, reserves, shareholders’ advances and loans, bank loans, long term indebtedness and other indebtedness, excluding current accounts payable. Corporations are exempt from the tax where the total taxable paid-up capital of the corporation, or associated groups of corporations, is less than $5,000,000. The amount was raised from $3,000,000 to $5,000,000 for fiscal years ending after January 1, 1999.

1. The basic rate is 0.3% and there is a 0.2% on taxable paid-up capital exceeding $10,000,000.

2. The federal rate reflects the Large Corporations Tax, the Financial Institutions Capital Tax and the 12% surtax on the Financial Institutions Capital Tax.

 Health and Post Secondary Education Tax Levy (Payroll Tax)
 

Manitoba imposes a payroll tax on salaries and wages. The tax rate is 2.15% of gross payroll for employers with payrolls in excess of $2 million. Employers with payrolls between $1 million and $2 million will pay 4.3% on the portion exceeding $1 million.
 

 General Taxation Web Site Links

CCRA Business Tax Site

CCRA Individual Tax Site

CCRA Tax Credit Programs for Businesses

CCRA Tax Credit Programs for Individuals

CCRA Tax Registered Programs