Manitoba - Provincial corporation tax

For a summary of the most recent changes, see What's new for corporations.

Lower rate

The lower rates of Manitoba income tax are obtained by subtracting from the higher rates the small business deduction rates. (You will find the deduction rates on Schedule 383 - see below.)

The lower rates of Manitoba income tax are:

• 3% effective January 1, 2007;
• 2% effective January 1, 2008; and
• 1% effective January 1, 2009.

Effective December 1, 2010, the small business income tax rate will be reduced to 0%.

The income eligible for the lower rate is determined using the Manitoba business limit. The Manitoba business limit is $400,000.

Higher rate

The higher rates are:

• 14% effective January 1, 2007;
• 13% effective July 1, 2008; and
• 12% effective July 1, 2009.

These rates apply to all income not eligible for the lower rates.

When the rate or the business limit changes during the tax year, you have to base your calculation on the number of days in the year that each rate or limit is in effect.

For more information, see Dual tax rates.

Reporting the tax

You can use Schedule 383, Manitoba Corporation Tax Calculation, to help you calculate your Manitoba tax before the application of credits. You do not have to file it with the return. See the schedule for more details.

On line 230 of Schedule 5, Tax Calculation Supplementary - Corporations, enter the amount of tax calculated.

Claiming the credits

Manitoba offers different tax credits. Details of each credit can be found in the following pages and their associated schedules:

• Manufacturing investment tax credit
• Foreign tax credit
• Refundable manufacturing investment tax credit
• Research and development tax credit
• Co-op education and apprenticeship tax credit
• Odour control tax credit
• Community enterprise investment tax credit
• Interactive digital media tax credit
• Book publishing tax credit
• Green energy equipment tax credit
• Film and video production tax credit

Forms and publications

• Schedule 383, Manitoba Corporation Tax Calculation
• Schedule 5, Tax Calculation Supplementary - Corporations

Government partners

• Manitoba (provincial site)