Income Tax (Affordability) Amendment Act 2022 Supports Inflation Relief
The Income Tax (Affordability) Amendment Act, 2022, was introduced today to implement two initiatives announced earlier this year as part of the Four-Point Affordability Plan.
Amendments incorporate the Saskatchewan Affordability Tax Credit (SATC) into income tax legislation.
“The SATC will help Saskatchewan people facing rising costs due to inflation,” Deputy Premier and Finance Minister Donna Harpauer said.
All Saskatchewan residents who are 18 years of age or older as of December 31, 2022, who have filed a tax return in Saskatchewan for the 2021 tax year will receive a one-time $500 SATC cheque this fall. The delivery of approximately 900,000 cheques is expected to begin the week of November 14.
Amendments maintain the small business tax rate at 0 per cent, retroactive to July 1, 2022, and will delay the restoration of the rate to 2 per cent until July 1, 2024.
“Extending the small business tax rate reduction by another year provides further support to small businesses as they continue to recover from the pandemic, while facing new challenges such as inflationary pressures, interest rate hikes, supply chain issues and labour shortages,” Harpauer said.
About 31,000 incorporated small businesses will benefit from this initiative. Extending the tax rate reduction will save small businesses an additional $93 million over the next three years. Saskatchewan is also tied for having the lowest small business tax rate in Canada and the highest income threshold of $600,000, making the province’s small business tax environment very competitive.
The Four Point Affordability Plan, which was introduced on August 23, 2022, also includes the exclusion of gym and fitness memberships and some recreational activities from the admissions, entertainment and recreation PST expansion that was implemented on October 1, 2022. Through the plan, Government will retire up to $1 billion in operating debt this year, made possible by a strong economy and higher resource prices.
Information about the Saskatchewan Affordability Tax Credit (SATC) and the Small Business Corporate Tax Rate Reduction changes is available online at https://www.saskatchewan.ca/residents/taxes-and– investments/tax-credits/saskatchewan-affordability-tax-credit and at Tax Information Updates. The Ministry of Finance tax information line is 1-800-667-6102 for information on the SATC and PST changes. Individuals can also email satc@gov.sk.ca for information about the SATC.
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