Tax Information: Corporation Capital Tax: Rates and Revenue

 
Authority: 

Collected under the authority of The Corporation Capital Tax Act. Corporation Capital Tax was implemented April 1, 1980.

Basis: 

The corporation capital tax applies to all corporations operating in Saskatchewan, whose "paid-up capital" exceeds $10,000,000. 

An additional exemption of up to $10,000,000 is available for fiscal years beginning on or after January 1, 2005. The amount of the exemption is based upon the proportion of total salaries and wages that are paid in Saskatchewan by a taxable corporation and its associated corporations.  Paid-up capital generally includes retained earnings, capital stock, and long term debt. 

In general, paid-up capital is defined as a company's shareholder's equity plus long-term liabilities.

The following corporations are not subject to the capital tax:

• federal and provincial non-commercial Crown corporations;
• credit unions;
• co-operatives;
• insurance corporations;
• family farm corporations; and
• certain corporations exempt from income tax under subsection 149(1) of the Income Tax Act (charities, municipalities, universities, pension trust).

Rate:

* Resource corporations are taxed the greater of 3.6% of the value of resource sales and 0.6% of paid-up capital over $10M. Effective July 1, 2006 the value of resource sales will be taxed at 3.3%. On July 1, 2007 this rate will be reduced to 3.10% and on July 1, 2008 further reduced to 3.00%.

** The tax rate for small financial institutions was lowered to 0.7% from 3.25% for fiscal years beginning on or after July 1, 1999. A "small financial institution" is defined as a financial institution with aggregate taxable paid-up capital, including all its associated corporations, of $1 billion or less. The $1 billion aggregate taxable paid-up capital threshold amount is effective for fiscal years ending on or after October 31, 2003.

CCT Revenue: