Manufacturers and Processors
Saskatchewan has competitive provincial taxation rates for corporations and has implemented two initiatives in the manufacturing and processing industry that may further reduce provincial corporate tax payable. Saskatchewan-based manufacturing and processing firms with a high allocation of income to Saskatchewan may receive a reduction of up to seven percent in their provincial corporate tax rate. This may reduce their provincial corporate tax rate to as low as 10 percent.
An investment tax credit for manufacturing plant and equipment purchases is in place in Saskatchewan. This investment tax credit is 6 percent of the value of eligible purchases including any provincial Education and Health Tax paid on the purchase of qualified equipment and property.
An exemption of the Education and Health Tax on direct agents is also in place. Direct agents are those materials consumed or used by a manufacturer or processor in the transformation or manufacture of a product. This exemption is equal to the 6 percent Education and Health Tax.
A Research and Development tax credit has been initiated in the province of Saskatchewan. This tax credit is equal to 15 percent of eligible expenditures incurred for basic or applied research and experimental development.
| Corporate Tax Rate Comparison 2002 |
| Province |
Small Business
Rate |
Manufacturing &
Processing Rate |
General Corporate
Rate |
| B.C. |
8.5 |
16.5 |
16.5 |
| Alta |
6 |
14.5 |
15.5 |
| Sask. |
6 |
10 |
17 |
| Man. |
9 |
17 |
17 |
| Ont. |
8.5 |
13.5 |
15.5 |
| Que. |
9.15 |
9.15 |
9.15 |
| N.B. |
7 |
17 |
17 |
| N.S. |
5 |
16 |
16 |
| PEI. |
7.5 |
7.5 |
16 |
| Nfld |
5 |
5 |
14 |
Saskatchewan has the lowest provincial sales tax from all the provinces that collect provincial sales tax.
| Provincial Sales Tax 2000 |
| Province |
Provincial Tax |
| B.C. |
7 |
| Alta. |
0 |
| Sask. |
6 |
| Man. |
7 |
| Ont. |
8 |
| Que. |
7.5 |
| Nfld. |
7 |
| N.S. |
8 |
| PEI. |
10 |
| N.B. |
8 |
No Healthcare Premiums
Saskatchewan doesn’t charge healthcare premiums to anybody. By comparison, a family of four in Red Deer will pay $816.00 per year and the same family in Kamloops will be charged $864.00 a year. Source: Saskatchewan Finance 1999
No Payroll Tax
Saskatchewan doesn’t charge a payroll tax as exists in Manitoba, Ontario, and Quebec. Moreover, our province has competitive Worker’s Compensation Rates.
| Average Worker's Compensation Rates 2002 |
| Province |
Rate |
| British Columbia |
2.12 |
| Alberta |
1.3 |
| Saskatchewan |
1.8 |
| Manitoba |
1.88 |
| Ontario |
2.59 |