For Immediate Release, April 11, 2018
WESK WELCOMES START-UP REBATE FOR SMALL BUSINESSES IN TECH SECTOR
SASKATOON— Women Entrepreneurs Saskatchewan (WESK) applauds the provincial government for the introduction of the Saskatchewan Technology Start-up Incentive announced in the 2018-19 Saskatchewan Budget.
“We are pleased to note the announcement for Saskatchewan-based small businesses in the tech sector that will enable them to flourish by encouraging new equity investments,” WESK CEO Prabha Mitchell said. “Not only will this new tax rebate foster entrepreneurship and innovation in Saskatchewan, it will undoubtedly lead to a more diverse economy and the creation of new jobs in the tech sector.”
Based on best practices in other western provinces, the STSI was created to address capitalization challenges faced by Saskatchewan tech start-ups.
Under the new initiative, eligible investors (individuals and corporations) will receive a non-refundable income tax credit equal to 45 per cent of qualifying new equity investments in eligible tech start-up businesses. These businesses include early stage tech start-ups developing new technologies, or applying existing technologies in a new way to create proprietary products, services or processes that are repeatable or scalable. Eligible businesses must be incorporated and have fewer than 50 employees, the majority of which are located in Saskatchewan.
The new tax rebate will be implemented as a two-year pilot program and the tax credit will be capped at a maximum annual benefit of $140,000 per investor.
“In Saskatchewan, small business is big business – as small businesses account for almost 99 per cent of all business enterprises. Women own more than one-third of all small businesses in the province,” Mitchell noted. “At WESK, we are hopeful that this new initiative will provide women entrepreneurs in the tech sector with new opportunities for investment and in turn, expansion.”
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