ARCHIVED - 5008-PC Information for Residents of Saskatchewan

All the information you need to calculate your Saskatchewan income tax and credits is included on the following pages. You will find two copies of Form SK428, Saskatchewan Income Tax and Credits, in this book. Attach a completed copy of Form SK428 to your return.

What's new for 2001?

The way you calculate your Saskatchewan tax has changed. It is no longer a percentage of federal income tax. Saskatchewan tax will now be calculated by applying provincial tax rates to taxable income (line 260 of your return). Provincial non-refundable tax credits are then deducted from this amount.

Provincial non-refundable tax credits generally parallel the federal credits. However, the Province of Saskatchewan has two additional non-refundable tax credits on Form SK428, the senior supplementary amount and amount for dependent children born in 1983 or later, to help reduce provincial tax.

The Saskatchewan flat tax, debt reduction surtax, high income surtax, and tax reduction have all been eliminated.

Donors to qualifying political parties or election candidates will be eligible to claim a provincial tax credit against Saskatchewan tax payable. In addition, Saskatchewan tax can now be reduced by a Mineral exploration tax credit.

Form SK428, Saskatchewan Income Tax and Credits, reflects these changes.

Saskatchewan programs for low-income individuals and families

Saskatchewan Sales Tax Credit (SSTC)

The SSTC is a program designed to improve the fairness of the provincial sales tax for low-income Saskatchewan residents.

The SSTC provides up to $77 for an individual, $77 for a spouse or common-law partner (or for an eligible dependant) and $55 per child (up to $110 per family), for a maximum annual credit of $264 per family. The credit begins to be reduced once family net income exceeds $8,600. Families with net income between $8,600 and $35,000 will receive part of the credit.

The SSTC is combined with the quarterly federal goods and services tax (GST) credit into a single payment.

To receive payments under the SSTC, you (or your spouse or common-law partner) should apply for the GST credit on your (or your spouse or common-law partner's) tax return.

Saskatchewan Child Benefit (SCB)

The SCB is a tax-free monthly payment that helps lower-income families with the cost of raising children under age 18. This benefit will also help lower income families stay in the workforce. Benefits are combined with the Canada Child Tax Benefit (CCTB) into a single monthly payment.

You do not have to apply separately to receive SCB payments. We will use the information from your CCTB application to determine your eligibility for the program. For more information, call 1-800-387-1193.

File your tax return - You (and your spouse or common-law partner) should file your 2001 tax return(s) as soon as possible. The information you (and he or she) give on your return(s) will determine how much SCB and SSTC you will receive starting in July 2002.

The SSTC and the SCB programs are fully funded by the Province of Saskatchewan. For families living on a reserve, the SCB benefits are funded by Indian and Northern Affairs Canada.

If you have questions…

If you have questions about Saskatchewan income tax and credits, contact the Canada Customs and Revenue Agency (CCRA) at 1-800-959-8281.

The address of your tax services office and other telephone numbers are listed in the federal government section of your telephone book and on the CCRA's Web site at www.ccra.gc.ca/tso/ .

If you have any questions about the labour-sponsored venture capital program, or tax credit Form T2C(SASK.), contact:

Saskatchewan Department of Economic Development
5^th Floor, 1919 Saskatchewan Drive
Regina SK S4P 3V7

Telephone: (306) 787-2252

If you have any questions about the post-secondary graduate tax credit program or tax credit certificate, contact:

Saskatchewan Department of Post-Secondary Education
B21, Walter Scott Building, 3085 Albert Street
Regina, SK S4P 3V7

Telephone: 1-800-597-8278 or 787-5620 (in Regina)