35% Tax Credit
Under Saskatchewan’s Labour-Sponsored Venture Capital Corporation (LSVCC) Act and the Income Tax Act (Canada), investments of up to $5,000 made between March 2nd, 2016 and February 29th, 2017 are eligible to receive a 20% Provincial tax credit and a 15% Federal tax credit.
|Your Investment||$ 5,000|
|Provincial Tax Credit (20%)||$ 1,000|
|Federal Tax Credit* (15%)||$ 750|
|RRSP Tax Deferral** (48%)||$ 2,400|
|Net Cash Outlay After Tax Savings||$ 850|
* In its 2016 budget, the Federal Government announced the restoration of the tax credit in Canada’s Labour-Sponsored Venture Capital program.
** Assumes a $5,000 investment by an investor in a marginal tax bracket of 48% ($200,000 and up).
SaskWorks contributions may be held in an RRSP, spousal RRSP, or LIRA account and are eligible to receive an RSP tax deferral equal to the shareholder’s marginal tax bracket.
Please note: registered contributions that have not reached maturity by a shareholder’s 71st birthday must be transferred to a RRIF account and will be subject to mandatory withdrawals. Please discuss the implications of a RRIF transfer with your investment advisor.
Alternatively, a shareholder may choose to hold their investment in a non-registered account.
8-Year Maturity Period
Per Saskatchewan’s LSVCC Act, investments in SaskWorks are subject to an eight-year maturity period. Shares redeemed prior to the maturity period having elapsed are subject to tax credit clawbacks and pro-rated early redemption fees.
A long-term viewpoint is essential to SaskWorks’ success. Well-aligned with our shareholders, the fund patiently invests over a 5 to 10 year time horizon, improving the value our portfolio assets by partnering with well-regarded management teams, demonstrably supporting our investees’ growth plans, and strategically exiting investments when SaskWorks’ involvement is no longer necessary.