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, the 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. Manitoba's PST rate of 8% will decrease to 7% effective July 1, 2019. RST Notice 19-01 explains the rate reduction transition rules for pre-paid contracts, holdbacks, insurance contracts, refunds, etc.
- 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 less than $1.25 million are exempt. For payroll between $1.25 million and $2.5 million, the tax is 4.3% on the amount in excess of $1.25 million. All employers with more than $2.5 million in yearly payroll pay 2.1% of their total payroll. Associated groups (ie., corporations and certain corporate partnerships) must share the $1.25 million exemption based on the total of their combined yearly payroll.
The Taxation Division Manitoba is where you can learn more, including these resources:
- Do I need to register? brochure
- Online account access TAXcess
- Information bulletins and notices
- Tax forms
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 [email protected].