Saskatchewan Manufacturing and Processing Profits Tax Reduction
Provincial corporate income tax rate reduction for income from manufacturing and processing activities in Saskatchewan.
About this program
The Saskatchewan Manufacturing and Processing Profits Tax Reduction provides a reduced provincial corporate income tax rate (general rate reduced by up to 2 percentage points) on eligible income earned from manufacturing and processing activities in Saskatchewan. Combined with Saskatchewan's 0% small business tax rate on the first $600,000 of active business income (one of the lowest in Canada), the M&P Profits Tax Reduction creates a competitive tax environment for Saskatchewan manufacturers and processors. Eligible income is determined based on the federal manufacturing and processing profits formula.
Eligibility
Corporations with permanent establishment in Saskatchewan earning income from manufacturing or processing activities; income calculated based on federal M&P profits formula; eligible manufacturing/processing operations as defined by CRA.
Requirements
- Saskatchewan permanent establishment
- Manufacturing or processing operations
- Manufacturing and processing profits calculation (federal formula)