See the Manitoba government Budget
2009 website for complete budget details, and their Budget
Tax Changes Bulletins page for the Taxation Changes 2009 Budget
document..
The taxable portion of withdrawals from Registered
Disability Savings Plans (RDSPs) will be excluded from family net income
for the purposes of the following three refundable Manitoba tax credits:
This is a non-refundable, 30% personal income tax
credit for resident investors in eligible community enterprise development
projects. The maximum tax credit is $9,000, based on a $30,000
investment. The maximum value of issuable shares that a business can
apply for under this program is doubled from $500,000 to $1 million,
commencing in 2009.
The rate of this non-refundable tax credit will
increase from 10% to:
20% on agreements entered into from April 1, 2009
to March 31, 2010, and to
30% on agreements entered into from April 1, 2010
until March 31, 2011
Personal Tax - previously announced changes
There were no further changes to personal income tax
brackets or rates. These were previously revised for 2008 to 2011 by
the 2007 Budget. However,
the tax changes after 2008 were subject to budget balancing
provisions. As of November 16, 2009, the 2010 tax brackets and
personal income tax rates remain unchanged from 2009.
Also previously announced:
The basic personal amount, spousal amount, and eligible
dependent amount are each increased by $100 to $8,134 for 2009.
Primary Caregiver Tax
Credit is introduced for the 2009 tax year. The primary
caregiver may be a spouse, other relative, neighbour or friend who
provides care without remuneration to a qualifying Manitoba Home Care
client. After a three month qualifying period, the refundable credit
is $85 per month to a maximum of $1,020 per year to the primary caregiver
for each client, to a maximum of three clients within a given month.
Home Buyers' Plan withdrawal limit (from RRSPs) is
increased from $20,00 to $25,000
Business tax changes:
50% accelerated capital cost allowance (CCA) on
manufacturing machinery and equipment is extended to property
acquired in 2010 and 2011
Computer hardware and systems software acquired
in 2009 and 2010 qualify for 100% CCA rate
Proposed nondeductibility of interest payments
by Canadian companies respecting foreign affiliates is repealed.
Corporate Tax
Corporate Income Tax Rates
The small business
corporate income tax rate is reduced from 1% for 2009 to zero,
effective December 1, 2010. The dividend tax credit
rate for small business dividends will be reduced to 1.75% of grossed-up
dividends starting with the 2011 taxation year.
As previously announced in Budget 2007, the general corporate tax rate is reduced from
13% to 12% effective July 1, 2009.
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substitute for professional advice. Each person's situation differs, and
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site to your best advantage.
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