The Government of Manitoba administers several taxes to companies operating in the province. If you are starting or expanding a business in Manitoba, it's important to understand your tax obligations.
The most common taxes are listed below. There may be others to learn about, depending on your business activities.
Retail Sales Tax:
Often called the PST, Manitoba 7% Retail Sales Tax is applied to the retail sale or rental of most goods and services. The tax is calculated on the selling price, before the GST is applied. Small firms with annual taxable tales under $10,000 are not required to register and collect PST. Out-of-province businesses selling taxable goods and services to Manitoba customers are required to register with Manitoba Finance under certain circumstances.
The 2021 Manitoba Budget announced the following PST changes:
- Exemption for Personal Services: Effective December 1, 2021, personal services, including hair services, non-medical skin care and aesthetician services, body modifications and spa services will be exempted from PST. PST will still apply to tanning services provided by a device that uses ultraviolet radiation.
- Streaming Services: Effective December 1, 2021, audio and video streaming services will be subject to PST. Streaming service providers will be required to collect and remit PST on the sale of these services.
- Online Marketplaces: Effective December 1, 2021, online marketplaces will be required to collect and remit PST on the sale of taxable goods sold by third parties on their online platforms.
- Online Accommodation Platforms: Effective December 1, 2021, online accommodation platforms will be required to collect and remit PST on the booking of taxable accommodations in Manitoba.
Tobacco Tax:
This tax is applied to the sale of cigarettes and other tobacco products.
Fuel Tax:
Fuel tax is charged to consumers when purchasing diesel, gasoline, propane, commercial heating fuel, etc.
The Health and Post Secondary Education Tax Levy (HE Levy):
The "Payroll Tax" is paid by employers with a permanent establishment in Manitoba. Employers with a yearly employee payroll $1.5 million or less are exempt from this levy. For payroll between $1.5 million and $3 million, the tax is 4.3% on the amount in excess of $1.5 million. All employers with more than $3 million in yearly payroll pay 2.15% of their total payroll. Associated groups (ie., corporations and certain corporate partnerships) must share the $1.5 million exemption based on the total of their combined yearly payroll.
The 2021 Manitoba Budget announced threshold changes for this levy. Effective January 1, 2022, the exemption threshold will increase from $1.5 million to $1.75 million of annual remuneration and the threshold below which employers pay a reduced rate will increase from $3.0 million to $3.5 million.
The Taxation Division Manitoba is where you can learn more, including:
The World Trade Centre Winnipeg hosts seminars about taxes and other business topics. The sessions are held in Winnipeg and are often also available for remote participants via webinar (computer, tablet, smartphone). Check their calendar for upcoming opportunities.
CFIB is available to help our members learn more about provincial taxes. Contact us at 1-888-234-2232 or cfib@cfib.ca.
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