Economic Development in Winnipeg

Local governments are committed to creating an ever-more competitive and balanced corporate tax environment

For the last decade, local governments in Manitoba have made it a stronger priority to create a more competitive tax environment for business and investment while continuing to provide quality services to citizens.

Thanks to our strong economic performance and a commitment shared by all levels of government to a strong and stable economy, the governments of Manitoba and Winnipeg have steadily decreased business and personal taxes since the early 2000’s.

Federal, provincial, and municipal taxes and tax credits vary in scope and application. Canada’s tax system is competitive and businesses can count on the government to keep the tax system stable and predictable over the long term.

City of Winnipeg

• Zero percent increase in property tax – 12 years of tax freezes and reductions
• Introduced a small business tax credit
• 2009 elimination of business tax for the smallest businesses (1/3 of all businesses)

Province of Manitoba

• Corporation Income Tax reduced to 13% in 2008, and further reduced to 12% in 2009, with a reduction to 11%* planned for the future
• The small business tax was reduced to 1% in 2009
• Accelerated Capital Cost Allowance (CCA) for Machinery and Equipment 50% straight-line accelerated CCA for manufacturing equipment will be extended for an additional year. After 2010, CCA calculation will return to a declining balance basis, with a 50% rate for 2010, a 40% rate for 2011 and 30% rate for subsequent years
• Corporation Capital Tax was eliminated for manufacturers, effective July 2008. The general CCT will be phased-out (except for Crown corporations) over the next two years and eliminated by December 31, 2010
• Journeypersons Hiring Incentive added to Co-op Education & Apprenticeship Tax Credits is available to employers that hire recent apprenticeship graduates. The credit is equal to 5% of each journeyperson’s salary/wages (net of other government assistance), up to $2,500 for each of the first two 12-month periods of permanent, full-time employment
• Manufacturing Investment Tax Credit increased from 35% to 70% on January 1, 2008. The credit will be extended until December 31, 2011
• Film and Video Production Tax Credit provides a 5% bonus credit for films with a Manitoba producer. The frequent filming bonus is doubled to 10%, and the percentage of eligible salaries paid to non-residents eligible for the credit has increased to 30% of eligible salaries paid to Manitobans
• Interactive Digital Media Tax Credit to develop and produce interactive digital media projects in Manitoba may receive a refundable corporate income tax credit equal to 40% of Manitoba labour costs on eligible projects
• Book Publishing Tax Credit provides a refundable income tax credit equal to 40% of eligible Manitoba labour costs, and a 10% bonus for all books printed on forest-friendly paper