Community Profile - Business Taxation

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Business Taxation
Visit http://www.gov.mb.ca/finance/budget10/index.html for more detailed information.

Brandon's favourable economic climate for business is enhanced by a number of tax incentives in Manitoba:
The payroll tax exemption is $1,000,000.
There is no payroll tax for international and interprovincial trucking.
The capital tax exemption is $10 million.
The corporate income tax rate for small businesses is the lowest in the country at 0.2% for large non financial corporations with fiscal years starting after Jan 1 and no general corporation capital tax will be paid in respect of any period after Dec. 31, 2010.
The general corporation income tax rate has decreased annually by 0.5% to reach 13% as of July 1, 2008, and to 12% effective July 1, 2009.
Threshold to qualify for the lower small business tax rate is $400,000.
10% Manufacturing Investment Tax Credit (MITC). The refundable portion of the MITC is 50%.
The Research and Development Tax Credit is 20%. Becomes refundable for eligible work conducted by a Manitoba company in conjunction with a Manitoba research institution in priority research areas such as biotechnology.
The Retail Sales Tax has, since 1991, been applied alongside of the federal Goods and Services Tax instead of on top.
Telephone charges on 1-800 toll numbers are exempt from sales tax.
The Film and Video Production Tax Credit has been extended to March 1, 2011. (A program that can provide eligible Manitoba productions a tax credit of 5-65% of labour costs – visit www.mbfilmmusic.ca for full details)
Electricity used in mining and manufacturing activities is exempt from the sales tax.
Many types of direct agents used in manufacturing and mining exploration activity are exempt from sales tax.
The Odour Control Tax Credit has been extended until the end of 2011. This credit helps businesses invest in equipment to manage nuisance odours.

Source: Manitoba Budget

THE CITY OF BRANDON HAS NO BUSINESS TAX OR DEVELOPMENT TAXES!

City of Brandon Property Tax Mill Rates, 2010

2010 Mill Rates	Municipal	Local Education	Foundation	Total
Residential	19.481	15.440	0	34.921
Commercial	19.481	15.440	12.330	47.251

2010 Residential & Commercial Mill Rates in Select Manitoba Communities

Community	Residential Mill Rate	Commercial Mill Rate	Business Tax
Brandon	34.921	47.251	0
Dauphin	54.182	66.512	0
Portage la Prairie	42.726	55.056	0
*Thompson	47.949	60.279	4.35 % of Annual Rental Value
**Winnipeg	30.619	43.514	7.75 % of Annual Rental Value

*Thompson rates include water and sewer as there is no additional charge for these services.
**Winnipeg, local education based on average of all 8 school divisions.

Corporate Taxes (Canada & Manitoba) and Payroll Costs (Manitoba)

Canada & Manitoba 2010	Federal	Provincial	Total
Total Federal & Provincial Corporate Income Tax Rate	19%	*12%	31%
Total Federal & Provincial Small Business Income Tax Rate	11%	1%	12%
Total Corporate Tax Rate for Manufacturers/Processors	19%	*12%	31%

*As of July 1, 2010

Manitoba 2010	Rate
Corporation Capital Tax
Manufacturers and Under $10 million	Exempt
$10 - $20 million	0.1%
Over $21 million	0.2%
Provincial Sales Tax	7.0%
Federal Goods & Services Tax (GST)	5.0%

Major Payroll Costs (Statutory) MB - 2010	Rate
Employment Insurance	1.73%
Canada Pension Plan	4.95%
Payroll Tax
Under $1.25 million	Exempt
$1.25 and over	2.15% on the amount in excess of the $1.25 million