A pair of proposed measures could mean changes for small Saskatchewan businesses.
The provincial government will increase the small business income threshold to $600,000, up from $500,000, allowing business owners to use the small business tax rate – around two per cent – on up to $600,000 of their income.
“I’m hoping it will help them put more money back into businesses. They can maybe hire extra people. It’s an extra $100,000 less that they can be taxed on,” said Karen MacKinnon, president of the Flin Flon and District Chamber of Commerce.
“They can expand their businesses, maybe it could mean a little extra income that they could put toward things.”
The threshold increase is joined by a general corporate income tax increase on businesses.
Under the new increase, the province’s tax will increase half a percentage point to 12 per cent, making it equal with Manitoba, Alberta and British Columbia.
Businesses will pay more under the increase, but MacKinnon says the change is unlikely to harm northern business.
“I can’t see that having a massive effect on any businesses on the Saskatchewan side of our area,” said MacKinnon.
Both the income threshold and corporate income tax changes will go into effect on January 1, 2018.
