Saskatchewan Manufacturing and Processing Exporter Tax Incentive
$10,000
Tax Credit
Description:
The Manufacturing and Processing (M&P) Exporter Tax Incentives provide non-refundable tax credits to eligible corporations that expand the number of M&P-related full time employees above the number that were employed in 2014
Comments on Funding:
1. This portion of the incentive will offer an eligible business non-refundable tax credits equal to $10,000 in respect of each incremental full-time “head office” employee for each of the 2015 through 2023 taxation years.
2. The hiring incentive offers an eligible business non-refundable tax credits equal to $3,000 in respect of each incremental full-time employee for each of the 2015 through 2023 taxation years.
Rolling deadline
Eligibility:
Applicants must be:
1. M&P corporations exporting goods for sale;
2. those that derive at least 25% of revenues from the export to the rest of Canada or internationally of their manufactured goods each year and that:
a) “manufacture or process” goods for sale as defined in the federal Income Tax Act; or
b) principally involved in the commercial development of “new economy” products for export, including interactive digital media products and creative industry products.
Application Steps:
Applicants must:
1. complete a Certificate of Eligibility Application;
2. apply to the Ministry of Trade and Export Development for a Certificate of Eligibility. Include a copy of the base year (2014) T4 Salaries and Wages Summary as submitted to Canada Revenue Agency (CRA). If you are an eligible corporation utilizing the deeming provision, include a copy of:
a) The base year (2014) T4 Salaries and Wages Summary for each associated corporation of the corporate group; and
b) The base year (2014) T2 Corporation Income Tax Return Schedule 9 – Related and Associated Corporations.
3. If their corporation meets the initial eligibility criteria, the Ministry of Trade and Export Development will issue a Certificate of Eligibility that will establish the base year (2014) employment levels;
4. Applicants must file the current year corporation income tax return with CRA;
5. Once the current year corporation income tax return has been assessed and a T2 Notice of Assessment from CRA has been received, applicants must complete an M&P Exporter Tax Credit Claim Form and submit it to the Ministry of Finance. Include a copy of the:
a) Certificate of Eligibility as issued by the Ministry of Trade and Export Development;
b) Current year T4 Salaries and Wages Summary as submitted to CRA;
c) Current year T2 Corporation Income Tax Return;
d) Current year Notice of Assessment or Reassessment; and
e) Current year financial statements as presented to shareholders.
If they are an eligible corporation utilizing the deeming provision, include a copy of:
a) T4 Salaries and Wages Summary for each associated corporation of the corporate group; and
b) The T2 Corporation Income Tax Return Schedule 9 – Related and Associated Corporations.
A claim form will need to be submitted for each eligible year.
6. The Ministry of Finance will verify the claim form and provide:
a) A rebate calculated in accordance with program legislation; or
b) A written notice indicating that the corporation is not entitled to the rebate and the reasons for the determination.
Documentation Needed:
Applicants must submit:
1. a completed M&P Exporter Tax Credit Claim Form;
2. a Certificate of Eligibility as issued by the Ministry of Trade and Export Development;
3. the current year T4 Salaries and Wages Summary as submitted to CRA;
4. the current year T2 Corporation Income Tax Return;
5. the current year Notice of Assessment or Reassessment;
6. the current year financial statements as presented to shareholders;
7. additional information, as requested.
Other Things to Note:
• No new Certificate of Eligibility applications are being accepted for taxation years after
December 31, 2023.
• M&P Exporter Tax Credit Claim Form must be received within three years after the taxation year
for which the corporation intends to claim a rebate. No M&P Exporter Tax Credit Claim forms
are being accepted for taxation years after December 31, 2023.
About the author
Maurice
