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Manitoba Budget Report 2023

Last updated: Mar. 10, 2023 

Manitoba Budget 2023 Highlights

The 2023 Manitoba Budget, titled “Historic Help for Manitobans”, was released by Finance Minister Cliff Cullen on March 7, 2023.

The Budget is anticipated to result in a deficit of $378 million for 2022–2023, and deficits of $363 million for the 2023-2024 budget year, and $294 million for the 2024-2025 year.

No corporate or personal tax rate changes were made, but several credit changes were made or extended.

Here we’ll provide a summary of key highlights for Manitobans across the province.

Corporate Tax

Corporate tax rates for Manitoba were not changed and remain to be (as of January 1, 2023):

Corporate Income Manitoba Rate Combined Provincial + Corporate Rate
General 12% 27%
M&P 12% 27%
Small Business* 0% 9%

*tax rate on the first $500,000 of active business income, shared amongst an associated group.

Mineral Exploration Tax Credit permanently extended

The Government of Manitoba permanently extended the Mineral Exploration Tax Credit which was originally set to expire on December 31, 2023.

What is it?

Corporations which receive a T101 (Statement of Resource Expenses) from a mining corporation or a T5013 (Statement of Partnership Income) as a member of a partnership, may be entitled to credits from these entities.

Green Energy Equipment Tax Credit permanently extended

The Government of Manitoba permanently extended the Green Energy Equipment Tax Credit which was originally set to expire on June 30, 2023.

What is it?

It is a refundable tax credit available to Manufacturers and Purchasers of eligible green assets (i.e., geothermal heat pumps, green energy transmission equipment, etc.) of up to 15%.

Interactive Digital Media Tax Credit expanded

As of April 23, 2023, additional types of employee remuneration (including incentives) may be considered “eligible labour expenditures” in the application for the Interactive Digital Media Tax Credit.

Certain compensation remains to not be eligible under this definition (i.e., bonuses tied to revenues, stock options, etc.).

What is it?

The Interactive Digital Media Tax Credit is a refundable tax credit designed to encourage corporations to employ individuals to develop interactive digital media products in Manitoba.

The credit is either 35% or 40% (depending on the eligibility of the corporation) of the eligible amount of eligible salaries and wages and some marketing and distribution expenses paid for the tax year.

Corporations must first apply for a Certificate of Eligibility before any proposed project work on the product begins.

Personal Tax Measures

There are no changes to personal tax rates, but tax brackets will temporarily increase in 2024, with a return to annual indexing in 2025.

Taxable Rates 2023 Tax Brackets 2024 Tax Brackets
10.8% Up to $36,842 Up to $47,000
12.75% $36,843 to $79,625 $47,000 to $100,000
17.4% $79,626 and up $100,000 and up

The Government of Manitoba has also increased tax relief through a temporary increase of basic personal amount credit, from $10,145 to $15,000 – effective for the 2023 tax year only.

Other Tax Measures

Health and Post-Secondary Education Tax Levy

The Government of Manitoba announced a reduction of the Health and Post-Secondary Education Tax Levy for certain employers, through an increase in payroll tax thresholds, effective January 1, 2024:

  • Exemption threshold increased from $2 million to $2.25 million of annual payroll
  • Reduced rate threshold increased from $4 million to $4.5million of annual payroll

This Levy is charged on wages paid by employers with permanent establishments in Manitoba.

Increases to the threshold are applicable to certain industries, such as construction, manufacturing, retailer, wholesaler, professional and restaurants.

Provincial Sales Tax (PST)

The tax refund limitation period for provincially administered taxes for refunds arising from a tax audit, was extended to match the audit period.

School Tax Rebate

As promised in Budget 2021, the School Tax Rebate was increased to 50% in 2023, from 37.5% in 2022.

What is it?

To offset a portion of their school taxes, owners of residential or farm property will receive a 50% rebate of the school division special levy payable.

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