Lower Taxes for Small Businesses Will Help Economic Recovery
Legislation to reduce the tax rate for Saskatchewan small businesses over the next three years was introduced today, fulfilling another major commitment made by the government in the recent election campaign.
“Saskatchewan’s small businesses and their employees have been hard hit by the effects of the global COVID-19 pandemic,” Deputy Premier and Finance Minister Donna Harpauer said. “Lowering taxes for every small business in our province over the next three years will help them to recover from the pandemic and enable them to retain and hire more workers.”
Under this initiative, Saskatchewan’s small business corporate income tax rate drops from two per cent to zero effective October 1, 2020. Beginning July 1, 2022, the small business tax rate will move to one per cent. And on July 1, 2023, the small business tax rate will return to two per cent. The amount which small businesses can earn at the small business tax rate will remain at $600,000—the highest threshold in Canada.
These tax reductions will benefit about 31,000 incorporated Saskatchewan small businesses, saving them more than $189 million in provincial taxes over the next three years—for an average savings of more than $6,100 per Saskatchewan small business.
“Small businesses are a key driver of our economy, employing nearly 150,000 Saskatchewan workers,” Harpauer said. “By lowering taxes for small businesses over the next three years our government is helping to sustain that vital sector of our economy, bolstering employment and keeping our province on the path to economic recovery.”