Corporate Income Taxes

Manitoba Corporate Income Tax

Manitoba corporation income taxes are administered and collected by Canada Revenue Agency on behalf of the Province. The 12.0% basic provincial corporation income tax rate in Manitoba is applied to corporation taxable income allocated to the Province. Prior to December 2010, corporations which are eligible for the federal small business tax rate reduction paid 1.0% on the first $400,000 of corporation taxable income allocated to Manitoba, apportioned in accordance with federal provisions. As of December 1, 2010 the small business income tax has been eliminated.

For more information on the corporation income taxation in Manitoba, contact Taxation, Economic and Intergovernmental Fiscal Research Division, Manitoba Department of Finance or call
(204) 945-3757.

Federal Corporate Income Taxes

The basic federal corporate income tax rate in Canada is 38% and is assessed on national corporate taxable income. Corporations which are liable for provincial corporate income tax receive an abatement equal to 10%, reducing the basic federal rate to 28%. Corporations also paid a surtax equal to 4% of the basic federal corporate income tax until January 1, 2008 (less the abatement).

The 2011 general corporate income tax rate is 16.5%. For 2012 the rate is further reduced to 15.0%.

The small business limit, starting January 1, 2009 is $500,000. The small business rate, commencing January 1, 2008 is 11%.

For more information on the federal corporate income taxation in Canada, contact the Canada Revenue Agency, 325 Broadway, Winnipeg, 1-800-959-5525 or visit the Canada Revenue Agency Web site.