Saskatchewan qualifying environmental trust tax credit

• Corporations that are beneficiaries of a qualifying environmental trust in Saskatchewan may claim a fully refundable tax credit equal to 12% of the income subject to tax under Part XII.4 of the federal Income Tax Act.

• The applicant must be a corporation that is a beneficiary of a qualifying environmental trust located in Saskatchewan.
• The corporation must have income that is subject to tax under Part XII.4 of the federal Income Tax Act.
• The corporation must receive a letter from the qualifying environmental trust verifying beneficiary status.

Who is eligible?

• Corporations that are beneficiaries of a qualifying environmental trust located in Saskatchewan

Eligible geographic areas

• Saskatchewan

• Step 1: Obtain Letter from Qualifying Environmental TrustReceive a letter from the qualifying environmental trust confirming your status as a beneficiary eligible for the tax credit.
• Step 2: Calculate Credit AmountDetermine the amount of the 12% tax credit based on income subject to tax under Part XII.4 of the federal Income Tax Act.
• Step 3: Complete Schedule 5 – Tax Calculation Supplementary – CorporationsEnter the credit amount on line 641 of Schedule 5 as part of your corporate tax filing process.
• Step 4: Prepare Supporting DocumentationKeep the letter from the qualifying environmental trust as supporting documentation (do not submit it with your return, but retain it in case the CRA requests it).
• Step 5: Submit Corporate Tax ReturnFile your completed corporate tax return, including Schedule 5, with the Canada Revenue Agency.

• The credit is fully refundable after being applied against taxes payable.
• Corporations should retain the letter from the qualifying environmental trust, as it may be requested by the CRA for verification.
• The relevant credit amount should be reported on line 641 of Schedule 5, Tax Calculation Supplementary – Corporations.
• The letter from the trust does not need to be filed with the initial tax return submission.