1 The rate on capital gains is one-half the ordinary income tax rate.
2 The federal basic personal amount comprises two elements: the base amount ($13,521 for 2023) and an additional amount ($1,479 for 2023). The additional amount is reduced for individuals with net income in excess of $165,430 and is fully eliminated for individuals with net income in excess of $235,675. Consequently, the additional amount is clawed back on net income in excess of $165,430 until the additional tax credit of $222 is eliminated; this results in additional federal income tax (e.g., 0.32% on ordinary income) on net income between $165,431 and $235,675.
Personal tax credits
The budget proposes to increase the Saskatchewan Mineral Exploration Tax Credit rate from 10% to 30%, effective for the 2023 taxation year.
Other tax measures
Provincial Sales Tax
The budget proposes the following changes to Provincial Sales Tax (PST) to improve the fair and consistent application of the PST system:
For additional information with respect to this Alert, please contact the following:
Ernst & Young LLP (Canada), Saskatoon
Ryan Ball
Craig Hermann
Wes Unger
For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.