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

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

Corporation Capital Tax is imposed on corporations which have paid-up capital in excess of $10,000,000. An additional exemption of up to $10,000,000 is available for fiscal years beginning on or after January 1, 2005. The amount of the exemption is based upon the proportion of total salaries and wages that are paid in Saskatchewan by a taxable corporation and its associated corporations.

As a result of the April 6, 2006 Saskatchewan Budget, the Corporation Capital Tax rate used by corporations to calculate their Corporation Capital Tax payable, will be reduced effective July 1, 2006 and completely eliminated on July 1, 2008. Also, the Corporation Capital Tax Resource Surcharge rate paid by a resource corporation will be reduced July 1, 2006.

Paid-up capital generally includes retained earnings, capital stock, and long term debt. The capital tax is calculated on balance sheet values as at the fiscal year end and a return must be filed within six months after the fiscal year end. Corporations that have a capital tax liability of more than $4,800 per year must file monthly installments.

The following corporations are not subject to the capital tax:

• federal and provincial non-commercial Crown corporations;
• credit unions;
• co-operatives; 
• insurance corporations; 
• family farm corporations; and
• certain corporations exempt from income tax under subsection 149(1) of the Income Tax Act (charities, municipalities, universities, pension trusts).

The Corporation Capital Tax Resource Surcharge has been extended to include resource trusts and resource corporations affiliated with resource trusts.  This change is effective April 1, 2005 and the value of resource sales on and after this date are to be included in the annual filing of the Saskatchewan Corporation Capital Tax Return, which is due six months after the fiscal year end.

* 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.