Payroll Rebate Approved
Nova Scotia Business Inc. (NSBI) has approved a business development incentive in the form of a payroll rebate for MUFG Fund Services (Halifax) Limited, a contracting entity of MUFG Investor Services. MUFG Investor Services is a core business for Mitsubishi UFJ Financial Group.
MUFG Investor Services has the potential to create up to a maximum of 100 jobs in its expansion of business operations in Halifax. Based on the maximum growth forecast of the five-year payroll rebate agreement, NSBI estimates that MUFG could spend $22 million in salaries.
It is estimated the new employees would contribute provincial tax revenues of about $2.5 million through their income and consumption taxes. As a result, the company is qualified to earn up to a maximum of $1,554,000 through the payroll rebate agreement.
MUFG would be eligible for a smaller rebate if it creates fewer than 100 new jobs.
- payroll rebates are designed in a way that the tax revenue generated for the province by the new jobs in Nova Scotia is always more than the amount spent on the rebate
- payroll rebates are only paid after a business has generated actual payroll for the Nova Scotia economy
- for every dollar a company spends on the new jobs, it receives between five and 10 cents back
- when a company submits an annual rebate claim, it must send NSBI audited information that confirms the number of jobs it created that year
- payroll rebates are paid through the Strategic Investment Funds
Information on NSBI transactions can be found at www.novascotiabusiness.com/fundingdisclosures.