The Government of Saskatchewan introduced some recent legislation to provide relief to small businesses in the province.
As outlined in the 2024-25 Budget, The Income Tax Amendment Act, 2024 maintains the small business tax rate reduction in Saskatchewan at one per cent until June 30, 2025.
"Small businesses are the backbone of our provincial economy," Deputy Premier and Finance Minister Donna Harpauer said, "We are pleased to maintain the small business tax reduction to help support their growth and allow owners to reinvest in their businesses."
Saskatchewan temporarily suspended the small business corporate income tax rate of two per cent in Fall 2020 to support small businesses in the province through the pandemic and the ensuing recovery.
Following an extension in 2022, the rate was scheduled to gradually return to two per cent, beginning at one per cent on July 1, 2023. It was then set to return to two per cent on July 1, 2024, but it will now remain at one per cent until June 30, 2025.
With the extension, the province estimates that 31,000 small businesses in Saskatchewan will save $56 million in corporate income tax. The small business rate was first lowered in 2020, and they expect that to save Saskatchewan's small businesses an estimated $416 million in total.