Form T2 Schedule 389 "Manitoba Book Publishing Tax Credit (2019 and Later Tax Years)" - Canada

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Download Form T2 Schedule 389 "Manitoba Book Publishing Tax Credit (2019 and Later Tax Years)" - Canada

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Schedule 389
Manitoba Book Publishing Tax Credit
Code 1901
(2019 and later tax years)
Protected B
when completed
Corporation's name
Business number
Tax year-end
Year
Month
Day
• Use this schedule to claim the Manitoba book publishing tax credit under section 10.4 of the Manitoba Income Tax Act. You must apply no later than
18 months after the end of the tax year for which you are claiming the credit.
• You are eligible to claim this tax credit if you are a book publisher with a permanent establishment in Manitoba, you paid at least 25% of the wages
and salaries to Manitoba residents, and you answered yes to all the questions in Part 1 of this schedule.
• The Manitoba book publishing tax credit is a refundable credit that is equal to 40% of eligible book publishing labour costs and non-refundable monetary
advances made to authors, to a maximum of $100,000. An additional 15% credit is available for eligible printing costs.
• Book publishing labour costs include reasonable salaries and wages paid in the tax year and before 2025 to employees resident in Manitoba
on December 31 of that tax year, and 65% of contracted Manitoba labour costs paid in the tax year and before 2025. These costs are related to
publishing hardcover, paperback or electronic books, but not to the marketing or promotion of books.
• Eligible printing costs are the costs paid in the tax year for printing, assembling and binding eligible books that are printed on at least 30%
post-consumer recycled paper and published in the tax year or in the immediately following year. The costs must be incurred before 2026, and
they must be reasonable in the circumstances.
• An eligible book is a first edition, non-periodical publication that meets all the criteria outlined in subsection 10.4(3) of the Manitoba Income Tax Act.
• Include a completed copy of this schedule with your T2 Corporation Income Tax Return.
Part 1 – Eligible publisher
110
Yes
No
1. Does the corporation primarily carry on the business of book publishing? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
115
Yes
No
2. Does the corporation have a permanent establishment in Manitoba in the tax year? . . . . . . . . . . . . . . . . . . . . . . . . . .
120
Yes
No
3. Has the corporation published at least two eligible books within the two-year period ending at the end of the tax year?
Proportion of Manitoba labour costs to total labour costs:
Salaries and wages paid to Manitoba resident employees in the tax year (keep a list of names, addresses, and
140
social insurance numbers, as you may have to provide this information at a future date) . . . . . . . . . . . . . . . . . . . . . . . . .
130
Total salaries and wages the corporation paid to employees in the tax year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proportion of the total salaries and wages paid to Manitoba resident employees in the tax year
%
A
(line 140 divided by line 130) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If you answered No to any of questions 1 to 3, or if amount A is less than 25%, you are not eligible for the Manitoba book
publishing tax credit.
Part 2 – Eligible books (if you need more space, attach additional schedules)
A
B
Title of eligible book
Author(s)
200
210
1.
2.
3.
4.
5.
C
D
E
F
G
H
International standard book number
Date of publication
Number of pages
Number of books in
Format*
Classification
**
ISBN
yyyy/mm/dd
print run
220
230
240
250
260
270
1.
2.
3.
4.
5.
Total
* Enter the number corresponding to the format of the eligible book: 1. Hardcover 2. Paperback 3. Electronic
** Enter the number corresponding to the classification of the eligible book: 1. Fiction 2. Non-fiction 3. Poetry 4. Drama 5. Biography 6. Children
T2 SCH 389 E (19)
Page 1 of 2
(Ce formulaire est disponible en français.)
Clear Data
Schedule 389
Manitoba Book Publishing Tax Credit
Code 1901
(2019 and later tax years)
Protected B
when completed
Corporation's name
Business number
Tax year-end
Year
Month
Day
• Use this schedule to claim the Manitoba book publishing tax credit under section 10.4 of the Manitoba Income Tax Act. You must apply no later than
18 months after the end of the tax year for which you are claiming the credit.
• You are eligible to claim this tax credit if you are a book publisher with a permanent establishment in Manitoba, you paid at least 25% of the wages
and salaries to Manitoba residents, and you answered yes to all the questions in Part 1 of this schedule.
• The Manitoba book publishing tax credit is a refundable credit that is equal to 40% of eligible book publishing labour costs and non-refundable monetary
advances made to authors, to a maximum of $100,000. An additional 15% credit is available for eligible printing costs.
• Book publishing labour costs include reasonable salaries and wages paid in the tax year and before 2025 to employees resident in Manitoba
on December 31 of that tax year, and 65% of contracted Manitoba labour costs paid in the tax year and before 2025. These costs are related to
publishing hardcover, paperback or electronic books, but not to the marketing or promotion of books.
• Eligible printing costs are the costs paid in the tax year for printing, assembling and binding eligible books that are printed on at least 30%
post-consumer recycled paper and published in the tax year or in the immediately following year. The costs must be incurred before 2026, and
they must be reasonable in the circumstances.
• An eligible book is a first edition, non-periodical publication that meets all the criteria outlined in subsection 10.4(3) of the Manitoba Income Tax Act.
• Include a completed copy of this schedule with your T2 Corporation Income Tax Return.
Part 1 – Eligible publisher
110
Yes
No
1. Does the corporation primarily carry on the business of book publishing? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
115
Yes
No
2. Does the corporation have a permanent establishment in Manitoba in the tax year? . . . . . . . . . . . . . . . . . . . . . . . . . .
120
Yes
No
3. Has the corporation published at least two eligible books within the two-year period ending at the end of the tax year?
Proportion of Manitoba labour costs to total labour costs:
Salaries and wages paid to Manitoba resident employees in the tax year (keep a list of names, addresses, and
140
social insurance numbers, as you may have to provide this information at a future date) . . . . . . . . . . . . . . . . . . . . . . . . .
130
Total salaries and wages the corporation paid to employees in the tax year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proportion of the total salaries and wages paid to Manitoba resident employees in the tax year
%
A
(line 140 divided by line 130) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If you answered No to any of questions 1 to 3, or if amount A is less than 25%, you are not eligible for the Manitoba book
publishing tax credit.
Part 2 – Eligible books (if you need more space, attach additional schedules)
A
B
Title of eligible book
Author(s)
200
210
1.
2.
3.
4.
5.
C
D
E
F
G
H
International standard book number
Date of publication
Number of pages
Number of books in
Format*
Classification
**
ISBN
yyyy/mm/dd
print run
220
230
240
250
260
270
1.
2.
3.
4.
5.
Total
* Enter the number corresponding to the format of the eligible book: 1. Hardcover 2. Paperback 3. Electronic
** Enter the number corresponding to the classification of the eligible book: 1. Fiction 2. Non-fiction 3. Poetry 4. Drama 5. Biography 6. Children
T2 SCH 389 E (19)
Page 1 of 2
(Ce formulaire est disponible en français.)
Clear Data
Protected B
when completed
Part 3 – Manitoba book publishing tax credit
Book publishing labour
costs*
(exclude marketing, promotion, legal and accounting costs):
B
Salaries and wages paid to Manitoba resident employees (from line 140, Part 1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
×
=
400
405
65%
Contracted Manitoba labour costs paid in the tax year **. . . . . . . . . . . . . . . . . .
C
Subtotal (amount B plus line 405)
Total number of pages attributable to eligible books published in the tax year
***
D
(total of column E in Part 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
410
Total number of pages attributable to books published in the tax year
***
. . . . . . . . . .
Proportion of labour related to the production of eligible books
%
E
(amount D divided by line 410) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
415
Total book publishing labour costs (amount C multiplied by amount E) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
420
Total non-refundable monetary advances made to authors of eligible books in the tax year . . . . . . . . . . . . . . . . . . . . . . .
430
Total costs (line 415 plus line 420)
440
Manitoba book publishing tax credit (line 430 multiplied by 40%). This amount cannot exceed $100,000 . . . . . . . . . . .
Eligible printing costs bonus:
Eligible printing costs paid in the tax year for eligible books printed on paper with at least 30% recycled content
made from post-consumer waste paper.
455
Eligible printing costs incurred. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
460
Eligible printing costs bonus (line 455 multiplied by 15%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F
Total Manitoba book publishing tax credit (line 440 plus line 460). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter amount F on line 615 of Schedule 5.
* Any part of a salary, wage or fee that comes from profits or revenues is considered not to be related to the publication of books.
** Contracted Manitoba labour costs are amounts the publisher paid in the tax year and before 2025 to an individual resident in Manitoba, who is not an
employee of the publisher, or to a corporation with a permanent establishment in Manitoba. These labour costs are related to publishing hardcover,
paperback or electronic books, but are not related to the marketing or promotion of books.
*** An electronic book is considered to have the same number of pages as its most recent printed edition.
Page 2 of 2
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