Saskatchewan Extends Small Business Tax Reduction

The Government of Saskatchewan has introduced legislation to provide continued relief to small businesses in the province. As outlined in the 2024-25 Budget, The Income Tax Amendment Act, 2024 maintains the small business tax rate reduction at one per cent until June 30, 2025.

The small business corporate income tax rate was temporarily suspended in Fall 2020 to support small businesses through the pandemic and recovery. The rate was set to gradually return to two per cent, starting at one per cent on July 1, 2023, and reaching two per cent on July 1, 2024. However, with this extension, the rate will remain at one per cent until June 30, 2025.

This extension is expected to save an estimated 31,000 small businesses in Saskatchewan $56 million in corporate income tax. Since the initial lowering of the small business rate in 2020, Saskatchewan's small businesses are expected to save an estimated $416 million in total.

Travel agencies and travel advisors in Saskatchewan can benefit from this extended tax reduction, allowing them to reinvest in their businesses and support their growth during the ongoing recovery period.