Manitoba’s Bill 45, which enacts several tax measures from the province’s 2022 budget, received Royal Assent on November 3, 2022. Bill 45 makes permanent the Small Business Venture Capital Tax Credit and the Community Enterprise Development Tax Credit, among other tax changes announced in Manitoba’s 2022 budget on April 12, 2022.
The corporate income tax measures in Bill 45 are considered enacted for U.S. GAAP purposes as of November 3, 2022 (the date the bill received Royal Assent). These changes were 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).
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.
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 payroll 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
- Introduce a new Residential Renters Tax Credit, which replaces the renters component of the Education Property Tax Credit, to provide an annual credit of up to $525 to eligible renters of residential properties.
For more information, contact your KPMG adviser.
Information is current to November 14, 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