Manitoba additional deduction for credit unions
The Manitoba additional deduction for credit unions will be phased out over five years, starting in January 1, 2019, as follows:
- 80% for 2019
- 60% for 2020
- 40% for 2021
- 20% for 2022
- 0% after 2022
The amount will be prorated for all tax years during the phase-out period that do not coincide with the calendar year.
The 1% profits tax applicable to Manitoba credit unions and caisses populaires is eliminated effective January 1, 2019.
The Manitoba additional deduction for credit unions allows credit unions an additional reduction from income tax otherwise payable. It is designed to reduce their overall income tax rate to the same net rate paid by small business corporations that claim the Manitoba small business deduction.
To be eligible to claim the additional deduction, the credit union must meet all of the following conditions:
- have been a credit union throughout the tax year
- have had a permanent establishment in Manitoba at any time in the tax year
- have Manitoba taxable income in the year
Claiming the deduction
File Schedule 17, Credit Union Deductions, with your return.
Forms and publications
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