SCT1, Saskatchewan Corporation Capital Tax Return

Information Sheet

Corporations with a permanent establishment in Saskatchewan and a value of paid-up capital, less allowable deduction, greater than zero are required to file a corporation capital tax return and pay any balance of tax owing on or before the last day of the month that ends six months following the close of its fiscal year. Unpaid taxes bear interest from the date the taxes were required to be paid. For further program information including Information Bulletins and Notices, see http://www.saskatchewan.ca/business-taxes. If there is any inconsistency between this application and the program legislation, the latter shall prevail.

Currency

• Returns must be completed in Canadian dollars.

Tax Rates

Corporation Capital Tax Rates

1. Financial institutions
   • The tax rate for a financial institution is 4.0%.
   • The rate for a small financial institution is 0.7%. A “small financial institution” is defined as a financial institution with aggregate taxable paid-up capital, including all of its associated corporations of $1.5 billion or less.
2. Crown corporations
   • Crown corporations are subject to a 0.6% corporation capital tax rate.
3. Resource corporations
   • Resource corporations are defined as any corporation which has a value of Saskatchewan resource sales and which has, or would have:
     1. A value of taxable paid-up capital in the fiscal year without claiming the deduction for deferred exploration and development expenses, or
     2. Assets in excess of $100 million (including assets of all associated corporations). The assets of the associated group of corporations may be accounted for on a consolidated basis.
   • The tax rate for resource corporations is 0.0%.
   • Resource corporations are subject to a corporation capital tax resource surcharge.

Resource Surcharge Tax Rate

• The Resource Surcharge rate for all oil and gas wells with a finished drilling date on or after October 1, 2002 and for incremental oil related to new or expanded enhanced oil recovery projects or waterflood projects having a commencement date on or after October 1, 2002 is 1.7%.
• The Resource Surcharge rate for all other oil and gas wells, coal, potash and uranium corporations is 3.0%

Telecommunications Tax Rate

• Telecommunications corporations are subject to a telecommunication tax of 0.9% on their telecommunication capital.

Please submit the following with your return:

• One completed and signed return including all schedules.
• Payment for any outstanding tax. Cheques may be made payable to the Minister of Finance.
• One complete set of financial statements as presented to the shareholders.
• One complete T2 Corporation Income Tax return including all schedules.
• Corporations not resident in Canada must submit reconciliations of world figures to Canadian amounts.