Legislation to reduce the tax rate for Saskatchewan small businesses over the next three years was introduced today, fulfilling another major commitment made by the government in the recent election campaign.
Under this initiative, Saskatchewan’s small business corporate income tax rate drops from two per cent to zero effective October 1, 2020. Beginning July 1, 2022, the small business tax rate will move to one per cent. And on July 1, 2023, the small business tax rate will return to two per cent. The amount which small businesses can earn at the small business tax rate will remain at $600,000—the highest threshold in Canada.
These tax reductions will benefit about 31,000 incorporated Saskatchewan small businesses, saving them more than $189 million in provincial taxes over the next three years—for an average savings of more than $6,100 per Saskatchewan small business.