Manitoba has eliminated the general capital tax and the small business income tax rate, said Finance Minister Rosann Wowchuk.
"When we came into office, Manitoba businesses were burdened with the highest general corporation capital tax in the country," said Wowchuck.
Eliminating the general capital tax will save businesses in the province $119 million annually, she said.
"Combined, these two tax cuts will significantly help our businesses keep more money, allowing them to reinvest in their companies," said Wowchuk.
Along with the elimination of the general corporation capital tax and the small business income tax rate, 2011 will see additional tax measures including:
• A provision in the Research and Development Tax Credit of a five-per-cent refundable income tax credit and a 15-per-cent non-refundable income tax credit for companies undertaking research and development in Manitoba. The five per cent refundable tax credit will provide companies with an estimated $6 million in additional tax savings.
• An extension of the Co-op Education and Apprenticeship Tax Credit to employers that hire high-school students and post-secondary level 1 and 2 apprentices. The tax credit is equal to 10 per cent of the remuneration paid to an apprentice up to a maximum credit of $2,000, providing employers with an estimated $2.1 million in annual tax savings.
Budget 2010 also announced the extension of the following tax credits:
- Interactive Digital Media Tax Credit
- Manitoba Film and Video Production Tax Credit
- Small Business Venture Capital Tax Credit.
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