Nova Scotia Business Inc. (NSBI) has approved a business development incentive in the form of a payroll rebate for Manulife’s continued growth in Halifax.
Manulife Financial Corporation (Manulife), a leading global financial services company headquartered in Canada, is transforming its business to become a digital, customer-centric market leader. It has decided to expand its existing operation in Halifax, with the potential to create up to a maximum of 600 additional jobs in the province over the next five years. Based on the maximum growth forecast of this 2018 agreement, NSBI estimates the company could spend $139,800,000 in salaries.
Since first entering into a payroll rebate agreement with NSBI in 2014, Manulife has added 152 full-time equivalent jobs in Nova Scotia.
It is also estimated the new employees would contribute provincial tax revenues of $15,852,000 through their income and consumption taxes. As a result, the company would earn a rebate up to $9,877,500 over five years.
Manulife would be eligible for a smaller rebate if it creates fewer than 600 new jobs.
Quick facts:
- 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 of 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 Fund
Information on NSBI transactions can be found at http://www.novascotiabusiness.com/fundingdisclosures .
Source: Release