The political contributions tax credit system provides resident taxpayers, inclusive of individuals and corporations, the opportunity to claim tax credits against Saskatchewan income tax payable based on eligible contributions made to a registered political party or independent candidate for which a valid tax receipt was obtained. The Political Contributions Tax Credit Act, 2001 (Saskatchewan) (the "Tax Credit Act") governs the Province’s political contributions tax credit for use by provincial resident taxpayers under The Income Tax Act, 2000 (Saskatchewan) (the "Provincial Tax Act").
Where a registered political party or independent candidate solicits funds and thereon issues tax receipts, the receipts must be consistent with the policies underlying the Tax Credit Act to qualify under the Provincial Tax Act. The Chief Electoral Officer has interpreted these policies to include the election of Members of the Legislative Assembly and activities necessarily incidental thereto. As a result, registered political parties and independent candidates may receipt contributions received from provincial resident taxpayers, in accordance with the Tax Credit Act, when such contributions are utilized to advance the democratic process in Saskatchewan.
Please refer to the Political Contributions Tax Credit Table for example tax credit calculations.
Tax receipts may be issued for every eligible contribution received by a registered political party or independent candidate which exceeds $25.00. The tax credit available to provincial resident taxpayers, deductible against their Saskatchewan income tax payable, is calculated in accordance with the following formula:
- where the total eligible contribution is $400 or less, the amount of the tax credit that a taxpayer is entitled to claim for a taxation year is 75% of the total contribution; or
- where the total eligible contribution is greater than $400 but not greater than $750, the tax credit is $300 plus $50% of the amount by which the total contribution exceeds $400; and
- where the total eligible contribution is greater than $750, the tax credit a taxpayer is entitled to claim is the lesser of:
- $475 plus 33 1/3% of the amount by which the total contribution exceeds $750; or
Official income tax receipts must be issued by a chief official agent on behalf of a registered political party or by a business manager in the case of an independent candidate. Chief official agents can issue receipts only if their names are recorded in the Register of Political Parties maintained by the Chief Electoral Officer. The business manager of an independent candidate is eligible to issue tax receipts on behalf of the independent candidate if the validity of the candidate’s nomination has been certified by the constituency returning officer in accordance with subsection 48(2) of The Election Act, 1996 (Saskatchewan)(the "Election Act").
Annual Campaign Period Reporting
In accordance with the Tax Credit Act, a chief official agent of a participating registered political party shall file a reconciliation of tax receipts used through the preceding calendar year. This reconciliation shall be filed with the Chief Electoral Officer in prescribed form on or by the last day of April. This annual reporting is undertaken on an Annual Report of Contributions (Registered Political Party) (Form P-602) and details the aggregate amount of contributions receipted, the number of tax receipts issued, spoiled or duplicated, and the number of tax receipts retained (i.e., unused). Copies of each issued, spoiled and/or duplicated receipt must accompany such annual filing.
In circumstances where an independent candidate participates in the Province’s political contributions tax credit regime, that candidate’s business manager, in accordance with the Tax Credit Act, shall file - on or before thirty (30) days after polling day - in prescribed form, a reconciliation of tax receipts provided for use during the campaign period, together with the aggregate amount of contributions receipted. Independent candidates campaign period reporting is submitted on a Campaign Period Report of Contributions (Independent Candidate) (Form P-606). Copies of each issued, spoiled and/or duplicated receipt must accompany the filing, along with all unused receipts.
Pursuant to the Election Act, annual registered political party and independent candidate campaign filings, on Form P-602 and P-606 respectively, are available for public inspection at Elections Saskatchewan.