Tourism Winnipeg

Federal Value Added Tax (Goods and Services Tax) Individuals, businesses and other entities pay the five per cent federal Goods and Services Tax (GST) on most goods and services. Most businesses, including manufacturers and processors, qualify for full input tax credits on the amount of GST paid on purchases made for business purposes where the firm is not the final consumer. Manitoba Retail Sales Tax The Retail Sales Tax is an eight per cent tax applied to the retail sale or rental of most goods and certain services in Manitoba. The tax is calculated on the selling price, before the federal GST (Goods and Services Tax) is applied. Manitoba Health and Post-Secondary Education Tax Levy The Health and Post-Secondary Education Tax Levy (HE Levy) is a tax imposed on remuneration that is paid to employees. The HE Levy is paid by employers with a permanent establishment in Manitoba. Employers with total remuneration in a year of $1.25 million or less are exempted. Associated groups (associated corporations/certain corporate partnerships) must share the $1.25 million exemption based on the total of their combined yearly payroll. CORPORATE TA X RATES COMPARISON Manitoba ranks on average when it comes to corporate income and investment income taxation in Canada. Federal, Provincial and Territorial Rates Income Tax Rate: Canadian Controlled Private Corporations Income Tax Capital-Tax Rate: General, Active business Rates Financial Manufacturing income earned Institutions and Processing in Canada to Investment (except Payroll Provincial (M&P) $500,000 Income Tax Insurance) Tax Sales Tax Federal Rate 15% 11% 34.67% 1.25% – – Prov. Comb. Prov. Comb. Prov. Comb. Manitoba 12% 27% 0% or 10.5% or 12% 50.67% 0% to 0% to 8% PST 12%* 22.5%* 6% 4.3% Source: Price Waterhouse Coopers, Tax Facts and Figures, Canada 2017 4 MAJOR TAXES IN MANITOBA 36 T E A M M A N I T O B A

• Cover