Goodwill, franchises and licences (Class 14.1) in Saskatchewan
A Saskatchewan corporation buying goodwill, franchise rights and indefinite-life intangibles on or after September 15, 2026 cannot use the Mega Deduction; regular Class 14.1 CCA at 5% still applies. Combined tax rates in Saskatchewan: 10.0% on small business income and 25.0% at the general rate.
Goodwill, franchises and licences (Class 14.1) in Saskatchewan
Worked examples
| Purchase | Old year-one deduction | New year-one deduction | Tax reduction (small business) | Tax reduction (general rate) | NPV benefit (general) |
|---|---|---|---|---|---|
| $25,000 | $625 | $625 | $63 | $156 | $0 |
| $100,000 | $2,500 | $2,500 | $250 | $625 | $0 |
| $250,000 | $6,250 | $6,250 | $625 | $1,563 | $0 |
Saskatchewan's small business limit is $600,000, higher than the federal $500,000. When buying a business, the purchase price allocation between equipment (eligible) and goodwill (not eligible) now has a much bigger cash impact. Negotiate it deliberately.
See also: all assets in Saskatchewan · Goodwill, franchises and licences (Class 14.1) in other provinces
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