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2013 Manitoba Budget Substantively Enacted 

Canadian Tax Adviser

 

June 04, 2013

 

A bill to enact Manitoba's 2013 budget measures received first reading in the provincial legislature on May 30, 2013. Among other changes, Bill 47 includes measures to increase corporation capital tax on financial institutions to 5% (from 4%) for fiscal years ending on or after April 17, 2013, increase the small business income limit eligible for the small business deduction to $425,000 (from $400,000) effective January 1, 2014, change the Manitoba dividend tax credit for non-eligible dividends effective 2014 (to reflect federal changes), and introduce the new rental housing construction credit.

Since the bill has received first reading and Manitoba has a majority government, the corporate budget measures are considered substantively enacted for purposes of IFRS and ASPE as of May 30, 2013.

 

See TaxNewsFlash-Canada 2013-16, "Highlights of the 2013 Manitoba Budget" for further details of the province's 2013 budget.

 

Non-eligible dividends
Bill 47 also includes Manitoba's 2013 budget measures to reduce the provincial dividend tax credit for non-eligible dividends to 0.83% (from 1.75%) effective for 2014, in response to the 2013 federal budget changes to the taxation of non-eligible dividends. As a result, the Manitoba tax on non-eligible dividends remains the same in 2014 as it is in 2013. However, as a result of the federal changes, the combined top marginal rate on non-eligible dividends for residents of Manitoba in 2014 will increase to 40.77% (from 39.15%) in 2013.

 

For more information, contact your KPMG adviser.

 

 

 

Information is current to June 04, 2013. 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

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