Manitoba

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 in Schedule 383 – see below.)

The lower rates of Manitoba income tax are:

• 5% effective January 1, 2004;
• 4.5% effective January 1, 2006; and
• 3% effective January 1, 2007.

The income eligible for the lower rate is determined using the Manitoba business limit. The Manitoba business limit is:

• $360,000 effective January 1, 2004; and
• $400,000 effective January 1, 2005.

You have to prorate these amounts using the number of days in each period.

Higher rate

The higher rates are:

• 15.5% effective January 1, 2004;
• 15% effective January 1, 2005;
• 14.5% effective January 1, 2006; and
• 14% effective January 1, 2007.

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

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-operative education tax credit
• Odour control 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)