PST Exemption for Business Assets upon Rollover
March 1st, 2018
RST (Retail Sales Tax) and PST (Provincial Sales Tax) are the same thing. Businesses with taxable sales and services are required to register with the Manitoba Taxation Division and collect and remit RST. Generally, RST is applicable on all goods or services unless there is an exemption. One notable exemption is on a rollover of assets between related parties. This means that if you are forming a corporation and meet certain criteria, you can transfer your vehicles into the corporate name without paying PST on the value of those vehicles. Timing is critical in order to take advantage of this exemption. If you are considering forming a corporation and rolling existing farm or business assets into it, our corporate lawyers would be pleased to work with you and your accountants to set it up in the most beneficial way.
Notice: The articles on our website are provided for general information purposes only and should not be relied upon as legal advice or opinion. They reflect the current state of the law as at the date of posting on the website, and are subject to change without notice. If you require legal advice or opinion, we would be pleased to provide you with our assistance on any of the issues raised in these articles.
