Saskatchewan has one of the lowest corporate income tax rates in Canada (12% as of Jan. 2020), combined with low operating costs and competitive, targeted incentives
“Saskatchewan has the lowest net business tax burden among the provinces according to a Conference Board of Canada report.”
– Regina Leader Post, May 2, 2016
Saskatchewan offers a refundable 10% tax credit for research and development expenditures.
For manufacturing and processing equipment, there is a 6.8% refundable investment tax credit. In addition, the Manufacturing and Processing Exporter tax incentive provides tax credits for expansion of full-time employees over 2014 baseline.
This program will reduce the provincial Corporate Income Tax rate for eligible corporations to six per cent for a period of 10 years—on taxable income earned from the commercialization of a broad range of qualifying types of intellectual property in Saskatchewan. This includes patents, plant breeders’ rights, trade secrets and copyright (computer programs and algorithms).
Eligible corporations will be able to extend the benefit period to 15 years if the majority of the related research and development has been conducted in the province. The SCII is open to any company in the world operating in any sector, regardless of where or when the research and development for the qualifying intellectual property occurred.
Provinces and territories have two rates of income tax – a lower rate and a higher rate.
|Province or territory||Lower rate||Higher rate|
|Newfoundland & Labrador||3.0%||15%|
|Prince Edward Island||4.5%||16%|
Targeted to create the conditions for the continued rapid growth and success of newly emerging technology companies, this incentive will further strengthen the province’s innovation strategy by helping to retain technology start-ups in Saskatchewan.