Saskatchewan manufacturing and processing profits tax reduction

You can claim this reduction if at any time in the tax year you had a permanent establishment in Saskatchewan; you had taxable income earned in Saskatchewan; and you had Canadian manufacturing and processing profits.

The profits from producing or processing electrical energy or steam for sale can be included with Canadian manufacturing and processing profits for this tax reduction.

You can reduce the Saskatchewan income tax rate on Canadian manufacturing and processing profits by 2% effective July 1, 2008.

If the tax year includes a date with a rate change, you have to prorate the tax calculation using the number of days before and after this date.

Claiming the reduction

We provide Schedule 404, Saskatchewan Manufacturing and Processing Profits Tax Reduction, as a worksheet to help you calculate the reduction.  It does not have to be filed with the return. See the schedule for more details.

On line 626 of Schedule 5, Tax Calculation Supplementary - Corporations, enter the amount of reduction you are claiming.

You must claim this reduction within three years of the filing due date of the return for the applicable tax year.

Forms and publications

• Schedule 404, Saskatchewan Manufacturing and Processing Profits Tax Reduction
• Schedule 5, Tax Calculation Supplementary - Corporations

Related topics

• Saskatchewan manufacturing and processing investment tax credit

Government partners

• Saskatchewan (provincial site)