Manitoba's budget implementation bill, which enacts several tax measures, received first reading on October 11, 2022. Bill 45 makes permanent the Small Business Venture Capital Tax Credit and the Community Enterprise Development Tax Credit, among other changes announced in Manitoba’s 2022 budget on April 12, 2022.
The corporate income tax measures included in Bill 45 are considered substantively enacted for IFRS and Accounting Standards for Private Enterprise (ASPE) purposes on October 11, 2022, the date the bill received first reading (as Manitoba has a majority government). These measures are not considered enacted for U.S. GAAP purposes until the date the bill receives Royal Assent.
Corporate income tax measures
Small Business Venture Capital Tax Credit
Bill 45 makes the Small Business Venture Capital Tax Credit permanent (previously scheduled to expire on December 31, 2022), among other small technical changes. This tax credit supports corporations and individuals participating in venture capital funds.
Community Enterprise Development Tax Credit
Bill 45 makes the Community Enterprise Development Tax Credit permanent (previously scheduled to expire on December 31, 2022). This tax credit is available to corporations and individuals.
Other changes
Among other measures, Bill 45 also includes changes announced in the provincial budget to:
- Increase the exemption threshold under the province’s Health and Post-Secondary Education Tax Levy to $2 million (from $1.75 million) and increase the annual threshold below which employers pay a reduced rate to $4 million (from $3.5 million)
- Extend certain 2020 filing deadlines for the Research and Development Tax Credit by up to six months (but no later than December 31, 2020) to align with other federal deadline extensions in response to COVID-19
- Make minor changes to the Film and Video Production Tax Credit to confirm that film producers can get advance credits before a film is completed, provided that proper documentation is submitted.
For more information, contact your KPMG adviser.
Information is current to October 17, 2022. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500
