The Province of Saskatchewan has introduced legislation to reduce the short-term tax rate for Saskatchewan small businesses. Under this initiative, Saskatchewan’s small business corporate income tax rate drops from 2% to 0% effective October 1, 2020.
Then beginning July 1, 2022, the small business tax rate will move to 1%. And on July 1, 2023, the small business tax rate will return to 2%. The amount which small businesses can earn at the small business tax rate will remain at $600,000—the highest threshold in Canada.