Enterprise Saskatchewan

Don't just take our word for it. Independent analysts agree: the cost of doing business in Saskatchewan is competitive with other provinces and other jurisdictions around the world.

In 2008, international consulting firm KPMG released the latest edition of Competitive Alternatives: A Guide to International Business Costs. This study compares the cost of doing business in 136 cities in 10 countries (France, Germany, Italy, the Netherlands, the United Kingdom, Japan, the United States, Mexico, Australia and Canada). The study includes four Saskatchewan cities: Saskatoon, Regina, Prince Albert and Moose Jaw. KPMG bases its rankings on input costs for labour, taxation, facilities (land, construction, leasing rates), transportation, utilities, depreciation and financing (interest costs).

Saskatchewan passed with flying colours. Moose Jaw and Prince Albert ranked 12th and 15th respectively out of all 136 cities surveyed by KPMG. Regina and Saskatoon also finished in the top one-third. In a comparison of 110 North American cities, Moose Jaw placed 7th, Prince Albert 10th, Saskatoon 29th and Regina 46th.

Among the 51 Canadian cities reviewed, all four from Saskatchewan rated better than the Canadian index and ahead of large cities like Calgary and smaller cities such as Kamloops.

Best in the West: Moose Jaw and Prince Albert ranked 1st and 4th respectively among a broader grouping of all 31 North American Midwest cities in the KPMG survey.

Not Far Behind: Saskatoon is ranked 3rd among the 23 featured cities from the North American Midwest. Saskatoon has the lowest costs for clinical trials, electronic systems development and testing, and software design.

Reaching for the Top: Regina is ranked in the top 25 out of all 136 cities surveyed for manufacturing of specialty chemicals, and telecommunications equipment.

Total Location-Sensitive Costs
All Industries
Source: KPMG 2008 Competitive Alternatives Report

When all costs are weighed-in, Saskatoon has a 1.1% cost advantage over Winnipeg (101.1) and a 5.5% advantage over Calgary (105.5).

Along with KPMG, other independent analysts have a positive outlook on Saskatchewan’s business environment.

According to the 2009 Fraser Institute Canadian Provincial Investment Climate Report, Saskatchewan has the second best investment climate in Canada behind Alberta in first place and in front of B.C. in third. The purpose of the report is to "objectively evaluate the public policies that create and sustain a positive investment climate" and then rank the provinces accordingly.

In a 2009 ranking of Canada's most business-friendly cities put Saskatoon in top spot.  The Canadian Federation of Independent Business Communities in Boom study rates four Saskatchewan cities among the top 10, including Regina, Moose Jaw, Lloydminster and Prince Albert in addition to Saskatoon.  The study evaluates cities based on three measures: tax and regulatory policies; concentration of entrepreneurs and business startups; and optimism/success of small business owners.

According to Statistics Canada, new capital spending by private and public organizations in Saskatchewan will achieve a record level of $15 billion in 2010, an increase of 5.5% from 2009. This will also mark the third consecutive year that new investment in Saskatchewan exceeds the $14 billion mark.

The Association of University Research Parks (AURP) named Innovation Place the 2009 Outstanding Research/Science Park. Recognized for their role in supporting the growth of science and technology related economic development in the Province of Saskatchewan, Innovation Place became the second Canadian park to receive the award in its 13-year history.

Canada’s only synchrotron – the Canadian Light Source – at the University of Saskatchewan enables groundbreaking research in the medical and pharmaceutical sectors. 

The University of Regina and the Innovation Place Regina research park have their own strengths in areas such as informatics, energy and the environment, and health. The Petroleum Technology Research Centre at Innovation Place Regina is one of the premier facilities of its kind in North America.

Industrial land costs in Saskatchewan are among the lowest in Canada, and utility rates are competitive with the rest of the country.

Saskatchewan’s tax regime is competitive and getting better:

• A phased elimination of Saskatchewan's general Corporate Capital Tax (CCT) was announced in the 2006 Budget. CCT on new investment was eliminated on July 1, 2006, and general CCT on existing investment was eliminated on July 1, 2008. (CCT will continue to apply to provincial Crown corporations and financial institutions.)
• The Corporate Income Tax (CIT) rate for manufacturing and processing can be as low as 10% – one of the lowest in the country.
• The general CIT rate is 12%.
• The CIT rate for small business is currently 4.5%, less than half the 1991 rate.
• There is no Payroll Tax and no Health Premium levied in Saskatchewan, unlike some other provinces.
• Saskatchewan’s top marginal rate for Personal Income Tax is the third lowest in Canada, and this is the only province in Canada to offer a universal child tax credit.
• At 5%, Saskatchewan's Provincial Sales Tax rate is the lowest of the nine provinces that charge PST.

Provincial Personal Income Tax
Top Marginal Rate
March 31, 2007

* NOTES:

1. Quebec, Nova Scotia, New Brunswick and Newfoundland fully harmonize their PST with the Federal Goods and Services Tax (GST).
2. Quebec and Prince Edward Island apply their PST on top of the 7% Federal GST. This moves Quebec’s provincial rate of 7.5% to an effective rate of 8.025%, and PEI’s rate of 10% to an effective rate of 10.7%.
3. Alberta has no PST, but it charges an Annual Health Premium of $1,056 per family. Although there is no statutory requirement, Alberta Finance estimates one-quarter of its health care premium revenue comes from business; from employers voluntarily paying all or part of premium costs for their employees. Saskatchewan has no health premium.