Personal income tax
Saskatchewan’s personal income tax system is fairly similar to that of other provinces in Canada. In recent years, the province has imposed various changes to its tax system to make it fairer and more competitive. Some of these changes include lowering the personal exemptions and expanding the tax base. In addition, the province eliminated a number of tax credits.
In Canada, individuals must file annual personal income tax returns with the Canada Revenue Agency by April 30 of each year. These forms provide information about total income for the year and allow for deductions to be made. Certain amounts are exempted from taxation, including capital losses and half of capital gains. In addition, individuals who live in northern Canada can take advantage of special deductions.
Other tax credits include the first-time home buyer tax credit, which can be worth up to $1,100 for eligible taxpayers. In addition, Saskatchewan residents can find a comprehensive list of refundable and non-refundable tax credits. TurboTax has an article outlining Canada’s federal personal income tax rates and brackets.
The 1970s saw a shift in taxation from the federal to the provincial government. In that decade, personal income tax rates increased from one-third to almost one-half of federal taxes. This increase was tied to the shift of tax room from the federal to the provincial government to fund social spending and health care. The province also increased Home Owner Grants, which provided additional money to homeowners and businesses. The introduction of the Corporation Capital Tax (CCT) was another major tax policy change during this period.
GST
GST in Saskatchewan is a consumption tax that applies to almost everything sold in the province. This tax may not seem complicated, but there are several steps you should take to be compliant. First, you need to know that digital products are taxable. These are the products that you download, store, and use online.
GST is applied at every level of the manufacturing process. It is 5% of the retail price. The government collects and forwarded the money. However, some products and services are zero-rated, meaning they are not subject to GST. These include some basic groceries, medical devices, prescription drugs, feminine hygiene products, and most international freight and passenger transportation services.
In addition to the GST rate, Saskatchewan has special rules for some types of businesses. Non-resident companies may need to register for VAT and appoint a fiscal representative to be taxed in the province. They may also need to fill out the GST questionnaire for non-residents. Furthermore, non-resident companies may be required to keep their books in a different jurisdiction than that of their permanent establishment.
GST is administered by the CRA, but Revenu Quebec, the provincial tax agency, administers the GST/HST for most registrants in the province.
RRSP deductions
When you’re considering making your next tax return, consider making RRSP contributions. Contributions to an RRSP are tax-deductible as long as they are made within 60 days of the end of the calendar year. If you don’t contribute in this timeframe, you’ll lose the ability to claim the deduction until the end of the following year. Using an RRSP calculator can help you maximize your deductions and minimize taxes. In addition to RRSPs, you can also make contributions to a Tax-Free Savings Account (TFSA).
The maximum you can contribute is 18% of your earned income from the prior year. You can check this limit by going to My Account on the Canada Revenue Agency’s website. It is best to maximize your contribution to your RRSP, as it will lower your taxable income by the amount of your contribution. You can also transfer any interest gains you may have from your TFSA into your RRSP.
Exemptions
In Saskatchewan, you’ll have to pay provincial sales tax, or PST, for certain products and services. The PST threshold amount is a calculation of the total amount of sales you made in the province over a 12-month period. If you made less than this threshold amount, you don’t have to worry about PST. Once you’ve crossed the threshold amount, however, you’ll need to register for VAT and adhere to Saskatchewan’s rules.
The HRTC is a tax credit that you can claim for eligible expenses. You can claim it on one or multiple returns based on your family’s expenses. In order to qualify for the HRTC, your principal residence must be in Saskatchewan, and you may claim more than one dwelling. However, your total expenses can’t exceed the allowed maximum.
If you produce or sell digital products or services, you can claim this exemption if you meet certain conditions. You must be a resident of Saskatchewan and produce or sell the products or services for commercial customers. For example, if you sell software or cloud-based services to a commercial customer, you need to be licensed in Saskatchewan. You can obtain a vendor’s license from the province by completing an Application for Vendor’s Licence and a Consumer Registration Form. Once you have obtained your vendor’s license, the province will issue you a registered consumer number.
In addition to the PST, you must also pay provincial sales tax (GST). This applies to most goods and services sold or imported into Saskatchewan. The GST rate in Saskatchewan is 6% and applies to both new and used goods. You can claim back this tax through a GST/HST return, but there are a few exceptions. Registered First Nations is exempt from the GST/PST.
Self-employment income
Self-employment income is any income that comes from a self-employed business. It is a separate legal entity from the owner. Usually, self-employment income is not subject to income tax. In some cases, self-employed people can deduct self-employment taxes from their adjusted gross income. This deduction can be claimed on Schedule SE, which is part of Form 1040.
If you are self-employed, you may receive Form T4As from your clients detailing the total dollar amount for each job you’ve performed. In addition, you should fill out Form T2125, Statement of Business Activities, to report your gross income. This form will also allow you to deduct expenses you’ve incurred through self-employment.
In Saskatchewan, self-employment income is subject to income tax. There are certain tax rates that apply to this type of income. The income threshold is $3,500. However, this threshold is not set in stone. You must file your tax return at least two months before the deadline for self-employment income.
Individual tax returns are due on 30 April following the reporting calendar year. However, you can request an extension with the government if necessary. Generally, this occurs if the regular date falls on a public holiday or a weekend. If you work for yourself, the due date for self-employment income tax returns is 15 June for residents and 20 June for non-residents.
Sales registration threshold
If you are operating a business in Saskatchewan, you will need to know what the sales registration threshold is. The threshold is the amount of sales that your business has made in a 12-month period. You can determine your threshold amount by looking at your previous sales, if any, or by predicting your sales for the next 12 months. If your business does not exceed this amount, you are exempt from paying PST and GST. If you do, however, make sales in Saskatchewan over this threshold, you will need to register for VAT and follow the rules for doing so.
The sales threshold levels in Canada vary depending on the province. For instance, federal sales thresholds are CAD30,000 for a business. However, in Saskatchewan, this threshold is CAD30,000 per year. Once a business crosses this threshold, they have a tax liability from the first sale. In British Columbia, Manitoba, and Ontario, the threshold varies based on the average PST or HST collected by a business per month.
If your business has sales greater than CAD 500,000 per year, you will be subject to the PST. The sales registration threshold is 6% of the total cost of the goods. If your sales are less than this, you can claim a small trader exemption. However, if you have over-the-limit sales, you may have to register for PST and pay the provincial tax on all of your supplies.