Government of Saskatchewan
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  Wednesday, September 28, 2016
Minister of Finance

Corporation Capital Tax is imposed on corporations which have paid-up capital in excess of $10,000,000.

The Revenue Division has prepared a number of bulletins to help explain how Corporation Capital Tax applies in specific situations.

Download and print Corporation Capital Tax forms.

Your Corporation Capital Tax questions are answered.


Authority

Collected under the authority of The Corporation Capital Tax Act. Corporation Capital Tax was implemented April 1, 1980.

Overview

Corporation Capital Tax (CCT) is imposed on corporations which have paid-up capital in excess of $10 million.  An additional exemption of $10 million is available based upon the proportion of total salaries and wages that are paid in Saskatchewan by a taxable corporation divided by the salaries and wages of the corporation and all its associated corporations.

Effective July 1, 2008 the normal CCT on general corporations was eliminated.  The Province continues to levy CCT on financial institutions and provincial commercial Crown corporations.  In addition, a Resource Surcharge on the value of sales of oil, natural gas, potash, uranium and coal in Saskatchewan continues to be levied under authority of The Corporation Capital Tax Act.

General corporations with a fiscal year beginning after June 30, 2008 which are not a financial institution, a crown corporation or a resource corporation are not required to file a CCT return.

For large financial institutions, the CCT rate is 3.25 per cent of all taxable capital allocated to Saskatchewan.  The CCT rate for small financial institutions is 0.7 per cent of all taxable capital allocated to Saskatchewan.  A small financial institution is defined as having $1.5 billion or less in Canadian taxable paid-up capital among all its associated corporations.  Credit unions and insurance corporations are exempt from CCT.

The CCT rate for provincial commercial Crown corporations is 0.6 per cent of all taxable paid-up capital allocated to Saskatchewan.

For resource corporations, the Resource Surcharge rate is 3.0 per cent of the value of sales of all potash, uranium and coal produced in Saskatchewan, and oil and natural gas produced from wells drilled in Saskatchewan prior to October 1, 2002.  For oil and natural gas produced from wells drilled in Saskatchewan after September 30, 2002, the Resource Surcharge rate is 1.7 per cent of the value of sales.  The Resource Surcharge applies to resource trusts in addition to resource corporations.

Rate

Date of
Tax Change

Paid-up Capital*
Greater Than
$10 Million

Chartered
Banks

Loan and 
Trust Companies

January 1, 1987

0.5%

3.0%

3.0%

January 1, 1992

0.6%

3.0%

3.0%

April 1, 1992

0.6%

3.25%

3.25%

July 1, 1999

0.6%

3.25%/0.7%**

3.25%/0.7%**

July 1, 2006

0.3%

3.25%/0.7%

3.25%/0.7%

July 1, 2007

0.15%

3.25%/0.7%

3.25%/0.7%

July 1, 2008

0.0%

3.25%/0.7%

3.25%/0.7%

November 1, 2009

 0.0%

 3.25%/0.7%***

3.25%/0.7%*** 

* Resource corporations are taxed the greater of 3.6% of the value of resource sales and 0.6% of paid-up capital over $10M. Effective July 1, 2006 the value of resource sales will be taxed at 3.3%. On July 1, 2007 this rate will be reduced to 3.10% and on July 1, 2008 further reduced to 3.00%.

** The tax rate for small financial institutions was lowered to 0.7% from 3.25% for fiscal years beginning on or after July 1, 1999. A "small financial institution" is defined as a financial institution with aggregate taxable paid-up capital, including all its associated corporations, of $1 billion or less. The $1 billion aggregate taxable paid-up capital threshold amount is effective for fiscal years ending on or after October 31, 2003.  The aggregate taxable paid-up capital threshold was increased from $1 billion to $1.5 billion for taxation years ending on or after October 31, 2008

***For fiscal years ending on or after November 1, 2009, the Province introduced a $1.5 billion bracket applicable for current small financial institutions only, with the lower 0.7% financial institution rate applying on their first $1.5 billion of taxable capital, and the higher 3.25% rate applying only on their taxable capital above $1.5 billion.

Corporation Capital Tax Revenue

Year

Revenue

1995/96

$221,169,000

1996/97

$242,304,000

1997/98

$267,792,000

1998/99

$232,618,000

1999/00

$293,351,000

2000/01

$342,242,000

2001/02

$363,204,000

2002/03

$379,093,000

2003/04

$371,479,000

2004/05

$381,289,000

2005/06

$524,650,000

2006/07

$513,458,000

2007/08

$430,604,000

2008/09

$531,796,000

Year

Corporation Capital Tax & Resource Surcharge Combined Revenue

Corporation Captial Tax Revenue 

Resource Surcharge Revenue 

2009/10  $526,593,945  $50,962,078  $475,631,866
2010/11  $452,399,829  $91,551,392  $360,848,436
2011/12  $548,134,667  $95,327,739  $452,806,928
2012/13  $731,576,434  $103,901,105  $627,675,329
2013/14  $550,063,936  $113,196,239  $436,867,697
2014/15  $590,213,784  $115,708,135  $474,505,649
2015/16  $525,696,798  $125,060,542  $400,636,256
2016/17 (Budget)  $468,900,000  $129,200,000  $339,700,000


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