Manitoba-> Manitoba Budgets -> 2018 Budget
Manitoba 2018 Budget - March 12, 2018
The complete 2018 Budget can be found on the Manitoba website.
All tax changes are subject to legislative approval. Bill 34, The Budget Implementation and Tax Statutes Amendment Act, 2018, passed 2nd reading on October 11, 2018.
Existing Tax Credits Extended
- Manufacturing Investment Tax Credit and Mineral
Exploration Tax Credit are extended to December 31, 2020.
Personal Tax Measures
Basic Personal Amount
The Manitoba Basic Personal Amount is $9,382 for 2018. This will be increased to:
- $10,392 for 2019, and
- $11,402 for 2020
Dividend Tax Credit Non-Eligible Dividends
Section 4.7(1)(b)(i.2) of the Income Tax Act previously set the non-eligible dividend tax credit rate at 0.7835% of the taxable dividend, when "the federal dividend gross-up rate is 17%". This was amended by Bill 34 (link above) to "the federal dividend gross-up rate is 17% or lower". This means the 0.7835% rate is unchanged by the gross-up rate being reduced to 16% for 2018 and to 15% for 2019 and later years. See Manitoba non-eligible dividend tax credit.
Primary Caregiver Tax Credit
Effective immediately, the process for claiming the Primary Caregiver Tax Credit will be simplified by removing complicated paperwork. Instead of seeking approval of an application, caregivers will now only be required to complete a registration form, submit a copy to Manitoba Finance, and continue to claim the credit on the income tax return. Caregivers who applied to Manitoba Health or Families between January 1, 2018 and March 12, 2018 will have their forms forwarded to Manitoba Finance for registration.
The annual credit available to all eligible caregivers will now be a flat $1,400, eliminating the requirement to calculate the credit based on the number of days that care was provided.
Education Property Tax Credit
Effective for 2019, the calculation of the Education Property Tax Credit will be based on school taxes, and the $250 deductible will be eliminated. The Seniors' Education Property Tax Credit will also be calculated on the school tax portion.
Business Tax Measures
Small Business Deduction (SBD)
The small business income limit eligible for the small business deduction will increase from $450,000 to $500,000 on January 1, 2019. Canadian-controlled private corporations (CCPCs) that qualify for the SBD pay a 0% rate of Manitoba corporate income tax. See Corporate Income Tax Rates.
Child Care Centre Development Tax Credit
This is a new refundable corporation income tax credit for private corporations that create new child care centres for a total benefit of $10,000 per new infant or preschool space created, claimable over 5 years. The credit would be available for licensed spaces created by a taxable corporation that is not primarily engaged in child care services, effective after March 12, 2018 and before 2021. The total number of spaces will initially be limited to 200 under this program, but may be increased over time.
Other business tax measures:
- Small Business Venture Capital Tax Credit: Effective March 12, 2018, the $15 million revenue cap on the size of an eligible corporation is eliminated and the investment minimum is lowered from $20,000 to $10,000.
- Credit Unions and Caisses Populaires Profits Tax: Effective January 1, 2019, the 1% profits tax is eliminated.
- Retail Sales Tax: Effective May 1, 2018, exemptions will be applied for drill bits designed specifically for oil or gas exploration and development, and for fertilizer bins used in a farming operation.
- Credit Unions Special Deduction: This deduction is being phased out over 5 years beginning on January 1, 2019.
- Labour-Sponsored Funds Tax Credit: Eliminated for shares acquired after 2018.
- Rental Housing Construction Tax Credit: Eliminated effective for January 1, 2019.
Tax Credit Extensions
- The Manitoba Book Publishing Tax Credit is extended for 1 year to December 31, 2019.
- The Cultural Industries Printing Tax Credit is extended for 1 year to December 31, 2019.
Effective midnight, March 12, 2018, the Tobacco Tax rate for fine cut tobacco is increased from 28.5 cents per gram to 45 cents per gram. The rate for cigarettes, cigars and raw leaf tobacco remains unchanged.
Manitoba's carbon tax will impose a $25 tax per tonne of greenhouse gas emissions beginning September 1, 2018. This will apply to gas, liquid and solid fuel products intended for combustion in Manitoba. The carbon tax rates by select fuel type are:
More information on the carbon tax and other tax changes can be found in Budget Paper C - Tax Measures.
Revised: October 28, 2018
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