45, Alberta Small Business Tax Rate Reduction – April 2016Īs part of Alberta’s Recovery Plan, qualified corporations may claim the Innovation Employment Grant (IEG) beginning January 1, 2021.

Information Circular CT-17, Alberta Small Business Deduction – May 2019.

Canadian-controlled private corporations in an associated group share the maximum small business threshold.įor more information about the small business deduction: Deduction and tax credits Small business deductionĬanadian-controlled private corporations not in an associated group may claim a small business deduction on active business income (that is, non-investment income), up to the small business threshold of $500,000. The Alberta calculation of taxable income parallels the federal calculation, although taxpayers may claim different discretionary deductions such as capital cost allowance for federal and provincial purposes. Tax and Revenue Administration (TRA) administers the Alberta Corporate Tax Act that provides the calculation of Alberta corporate income tax including the Alberta small business deduction, innovation employment grant and other tax credits. Since the 1940s, all incorporated businesses with a permanent establishment (for example, office, mine, farm, oil well) in Alberta at any time in a taxation year pay income tax on the portion of their taxable income allocated to Alberta.

See Third-party organizations for instructions.

Third-party representatives for corporate income tax (accounting firms, bookkeepers, accountants, etc.) complete the Third-Party Organization Enrolment.

Account owners (corporate director or business owner) and representatives (authorized employees of the business, agents or other third parties representing clients in a program other than corporate income tax) complete the TRACS Enrolment Request.

More information about services offered in TRACS is available at alberta.ca. Currently accessible information includes:

Important notices Access your account information onlineĪs of October 3, 2022, Tax and Revenue Administration (TRA) will no longer be processing phone or email requests for basic account information.Īccount owners or their representatives can access most of the information related to corporate income taxes in Tax and Revenue Administration Client Self-Service (TRACS) portal.

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