Manitoba Budget Bill Receives First Reading | KPMG | GLOBAL

Manitoba Budget Bill Receives First Reading

Manitoba Budget Bill Receives First Reading

Manitoba Bill 36 received first reading on May 25, 2017.

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This bill implements all of the corporate and personal tax measures in the province's 2017 budget; it also includes new measures that were not announced in the budget. The provisions in Bill 36 are considered substantively enacted for purposes of IFRS and Accounting Standards for Private Enterprise (ASPE) as of May 25, 2017 (as Manitoba has a majority government).

Corporate tax measures announced in the 2017 budget

Bill 36 includes all of the corporate tax measures announced in Manitoba's 2017 budget. In particular, Bill 36:

  • Reduces the R&D Tax Credit to 15% (from 20%) effective for eligible expenditures made after April 11, 2017 
  • Reduces the non-refundable portion of the Manufacturing Investment Tax Credit to 1% (from 2%), for qualifying properties acquired after April 11, 2017 
  • Eliminates the capital tax deduction for fiscal years ending after April 30, 2017 
  • Eliminates the Paid Work Experience Tax Credit for Crown corporations and other provincial government entities, effective for the 2017 tax year.

 

The bill also eliminates the following tax credits (generally for contributions or expenditures made, or property acquired, as the case may be, after April 11, 2017):

  • Co-operative Development Tax Credit 
  • Odour Control Tax Credit 
  • Nutrient Management Tax Credit 
  • Riparian Tax Credit Data Processing Investment Tax Credits 
  • Neighbourhoods Alive! Tax Credit.

 

Manitoba's Bill 36 extends the following tax credits:

  • Manufacturing Investment Tax Credit (to December 31, 2020) 
  • Book Publishing Tax Credit (to December 31, 2018) 
  • Interactive Digital Media Tax Credit (to December 31, 2022).

Corporate tax measures not announced in the 2017 budget

Bill 36 includes several corporate tax measures that were not announced in the province's 2017 budget, including one that allows a credit union's preferred-rate amount to be determined through regulations to the Income Tax Act (Manitoba). Bill 36's remaining corporate tax measures are housekeeping measures concerning the Corporation Capital Tax Act and a measure that clarifies the reference in the Income Tax Act (Manitoba) to a corporation's taxable income earned in Manitoba.

Personal tax measures

Bill 36 includes all of the personal tax measures that were in the provinces 2017 budget, including measures to:

  • Extend the Mineral Exploration Tax Credit to December 31, 2020 
  • Increase the maximum Political Contributions Tax Credit to $1000, effective for the 2018 tax year.

Several of Bill 36's personal tax measures were not included in Manitoba's 2017 budget, including one that eliminates the Manitoba equity tax credit.

 

For more information, contact your KPMG adviser.

Information is current to May 30, 2017. 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

© 2017 KPMG LLP, a Canada limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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