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Manitoba Budget 2020

tax
Posted by Ryan Rawluk Posted on 21 Mar 2020

Manitoba Budget 2020

On March 19, 2020, Manitoba Minister of Finance Scott Fielding tabled the province's 2020-2021 budget.  The budget contains several tax measures affecting individuals and businesses in the province.

Personal tax measures

There were no changes to personal tax rates or brackets announced in the budget.  Previously basic personal exemption and tax brackets were raised for 2020 due to normal indexation.

- Primary Caregiver Tax Credit will need to be renewed every three years.

Business tax measures

There were no changes to business tax rates or the $500,000 small business deduction limit.

Other tax measures

- Retail Sales Tax rate will be reduced from 7% to 6% effective July 1, 2020.
- Retail Sales Tax on professional fees related to the preparation of personal income tax returns will be eliminated effective October 1, 2020.
- Probate fees will be eliminated effectice July 1, 2020.
- Vehicle registration fees will be reduced by 10% for renewals starting July 1, 2020.
- Health and Post-Secondary Education Tax Levy will have its annual remuneration exemption threshold increased from $1.25 million to $1.5 million and the limit available for reduced rate is increased from $2.5 million to $3 million effective January 1`, 2021.  The rates will remain the same.
- Green Levy of $25 per tonne of carbon dioxide equivlent emissions on liquid, gas and solid fuel products intended for combustion will be imposed effective July 1, 2020.  There will be a separate output-based pricing system for large emitters producing over 50k tonnes of carbon dioxide equivalent emissions.  Retail sales tax will not apply to the Green Levy.
- Tobacco tax rates will be increased effective July 1, 2020 to account for the decrease in the retail sales tax rate.
- Manufacturing Investment Tax Credit refundable portion will be reduced from 7% to 6% effective July 1, 2020 to coincide with the reduction in the retail sales tax.  The Manufacturing Investment Tax Credit is also being made permanent.
- A new Manitoba Production Company Bonus of 8% is being added to the cost-of-production credit for the Film and Video Production Tax Credit effective June 1, 2020, resulting in an increase to the total cost-of-production credit up to 38%.  Principal photography must begin on or after the effective date of this measure.
- Child Care Centre Development Tax Credit spaces limit is increased from 208 spaces to 682 spaces, an increase of 474 spaces.  Additionally, the maximum daily amount that can be charged is eliminated.

Other measures

Optometrists will be allowed to provide their professional services through a professional corporation.