Increased tax exemption for small businesses Manitoba | KPMG | GLOBAL

Canada: Increased tax exemption amount, small businesses in Manitoba

Exempt small businesses in Manitoba

Beginning in 2017, Manitoba's small business threshold will increase to $500,000* and small businesses with taxable income not exceeding this limit will be exempt from provincial corporate income tax. The December 2015 announcement reflects an increase from the previous small business tax-free threshold of $450,000.


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*$ = Canadian dollar


The 2015 Manitoba budget increased the small business income threshold for the small business deduction to $450,000 (from $425,000), effective January 1, 2016.

Manitoba is the only province to permanently eliminate the small business tax rate, which benefits about 85% of taxable corporations in the province. Currently, 14,000 corporations pay no Manitoba corporate income tax as a result of the 0% rate. That number is expected to increase to 16,000 in 2016.


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