How it's done
The business climate is the general economic environment that local businesses operate in. Reviewing and understanding the local business climate provides valuable insights about the economy, costs, risks, and incentives that may impact the success of your business. This activity will guide you to better understand the business climate in Winnipeg and help you answer the following fundamental questions.
What is the business climate in Winnipeg?
We have compiled the most important aspects of Winnipeg’s business climate as an interactive dashboard below. This dashboard provides valuable economic, resident, household, dwelling and development indicators that may influence the success of your business.
What costs and assistance should I know about?
Whether you have a new or existing business it is critical to be aware of costs, incentives and grants that impact your business. This dashboard provides you with a snapshot of the major costs of conducting business in Winnipeg and assistance available to Winnipeg businesses.
Affordable and Competitive Taxes
Individuals, businesses and other entities pay the five per cent federal Goods and Services Tax (5%) on most goods and services. Most businesses, including manufacturers and processors, qualify for full input tax credits on the amount of 5% paid on purchases made for business purposes where the firm is not the final consumer.
Manitoba Retail Sales Tax
The Retail Sales Tax is an eight per cent tax applied to the retail sale or rental of most goods and certain services in Manitoba. The tax is calculated on the selling price, before the federal GST is applied.
Manitoba Health and Post-Secondary Education Tax Levy (payroll tax)
The Health and Post-Secondary Education Tax Levy (HE Levy) is a tax imposed on remuneration paid to employees. Employers, and all their associated corporations and certain partnerships, who are permanently established in Manitoba pay the HE Levy, but are exempted if their total annual remuneration is $1.25 million or less. For further details, please see PWC, Tax Facts and Figures, Canada 2018.
Corporate Tax Rates
Manitoba ranks competitively with the rest of Canada when it comes to corporate income and investment income taxation.
Summary table for selected taxes on Corporations in Manitoba:
1 The lower rate applies to active business income up to $450,000 in Manitoba, and the higher rate to active business income from this threshold to $500,000.
2 Manitoba capital tax rate is 0 per cent until taxable paid-up capital is >= $4 Billion, after which it is 6 per cent.
Business Tax Rates
The business tax rate in Winnipeg in 2018 is 5.14% of the annual rental value (ARV). This rate is set annually by City Council. For more information about the business tax, please see (How Business Taxes are Calculated).
In 2018, a Small Business Tax Credit (SBTC) sees businesses with an ARV of $33,300 or less receiving an offsetting credit equal to their full business tax. This credit does not include BIZ Zone levies.
Property taxes are calculated in the City of Winnipeg by applying municipal and school division mill rates against the portioned assessment against individual and business properties. Additionally, Provincial Education Support mill rates are applied against non-residential and non-farm properties.
Municipal mill rates are set by City Council, the provincial government sets the Provincial Education Support mill rate, and the school divisions in the City of Winnipeg set their own mill rates. For more information on mill rates, please see (Statistics).
Business Improvement Zone Levies
Sixteen Winnipeg neighbourhoods have chosen to form Business Improvement Zones (BIZ), as permitted by the City of Winnipeg charter. The BIZ Zones' mandates are to attract new business and economic development to the area, and to lobby on behalf of their member organizations. If applicable, a BIZ levy is applied against the annual rental value. Each BIZ sets its own levy rate and is collected on their behalf by the City of Winnipeg. To see the latest rates, please see (Statistics).
Tax Incremental Financing
Tax Incremental Financing (TIF) is a tool that governments use as a financial incentive to spur economic growth, while minimizing the financial risk for the public sector. The incremental taxes (or increase in taxes) created by significant new development are used to help fund the development. TIF projects must create substantial property value improvements in order to receive funding, with a clear return on investment for the public.
In order to assist businesses in completion of a variety of building projects, and to ensure your project complies with City of Winnipeg Council policies, by-laws and provincial regulations, the City of Winnipeg coordinates land development services through the Planning Property and Development’s Land Development Branch. The Branch will be able to assist the businesses with respect to permits, inspections and zoning, coordinate an application process and approval and oversee implementation, preparation and certification of Development and Servicing Agreements, Zoning Agreements, Subdivision Agreements, and By-laws.
Average hourly earnings indicate the incomes her hour available from employment. The cost of labour in Winnipeg is very competitive across many industries compare to the other Canadian cities, often better than the national average. A summary of these earnings are provided in the table below.
Affordability and frugality are core components of the Winnipeg advantage. Our affordable housing, low utility costs, healthy CPI index and competitive tax rates, means that Winnipeggers enjoy more disposable income compared to other major cities across Canada. In fact, Winnipeg was ranked as the most cost-competitive city compared to the U.S. and Western Canada by KPMG, as recently as 2016.
Winnipeg real estate is affordable, with the housing market mirroring the city's stable and diverse economy. With house prices costing $213,942 less than the Canadian average in 2017, it's easy to see why Winnipeg has a reputation for being a great space to build a career and family simultaneously.
Average Annual Residential Prices, Canadian Census Metropolitan Areas
Source: Canadian Mortgage and Housing Corporation, Housing Market Outlook, Fall 2018
Rental properties allow for short-term flexibility living options, with available properties across the city. The rental vacancy rate in Winnipeg is currently 2.9% with an average apartment rent of $1,030.
Average Annual Rent, Canadian Census Metropolitan Areas
Source: Canada Mortgage and Housing Corporation, Rental Market Reports, 2018
Government partners offer an array of local, provincial and national programs that provide financial assistance like tax credits, tax incentives, training assistance, R&D assistance, loan guarantees and wage subsidies. Governments are also active partners through investment in industry-applied research capacity.
Below is a list of some of the most compelling government-administered programs now available to assist local businesses. Other sector-specific incentive programs are offered as well, and EDW's business development experts know them all.
Click HERE for a list of some of the most compelling government-administered programs now available to assist local businesses. Other sector-specific incentive programs are offered as well, and EDW's business development experts know them all