and Revenue Administration
Corporate Tax Act
Special Notice Vol. 5 No. 42
|| June 23, 2015 / updated July 2, 2015
||Alberta Treasury Board and Finance, Tax and
|For more information:
5 No. 42 / June 2015
CORPORATE TAX ACT SPECIAL NOTICE:
BILL 2 - AN ACT TO RESTORE FAIRNESS TO PUBLIC REVENUE
ALBERTA CORPORATE TAX RATE CHANGE
NOTE: This special notice is intended to explain legislation and provide specific information. Every effort has been made to ensure the contents are accurate. However, if a discrepancy should occur in interpretation between this special notice and governing legislation, the legislation takes precedence.
Bill 2 - An Act to Restore Fairness to Public Revenue, received Royal Assent on June 29, 2015.
The bill increases the general corporate tax rate from 10 per cent to 12 per cent, effective July 1, 2015. For a corporation with a tax year spanning July 1, 2015, the two tax rates will be pro-rated based on the number of days in the corporation’s taxation year that are before July 1, 2015 and after June 30, 2015.
Small business taxes remain at the current rate of three per cent:
- To maintain the small business tax rate at three per cent, the specified percentage for the Alberta small business deduction that may be claimed by Canadian-controlled private corporations on their qualifying amount is increased from seven per cent to nine per cent.
- The qualifying amount is the least of the corporation’s active business income, taxable income and the Alberta small business limit which remains at $500,000 annually, adjusted by certain factors.
The following forms have also been updated (July 2, 2015):