Corporate Income Tax - Overview
Alberta Corporate Tax Act Special Notice added - December 1, 2017
Alberta Corporate Tax Act Information Circular updated - October 31, 2017
Alberta Corporate Tax Act Interpretation Bulletin updated - October 26, 2017
Special Notice - posted July 27, 2017
Corporations operating in Alberta are required
to file Alberta corporate tax returns in addition to filing with Canada
Revenue Agency (CRA).
Tax and Revenue Administration (TRA), Alberta Treasury Board and Finance, administers the Alberta Corporate Tax Act, that provides for the calculation of:
- Alberta corporate income tax for corporations with a permanent
establishment in Alberta, including Alberta deductions and credits
such as the Alberta small business
deduction, Alberta foreign investment income tax credit, Alberta
political contributions tax credit and scientific research and experimental
development (SR&ED) tax credit (see below); and
- Insurance premiums tax payable by insurers carrying on the business of insurance in Alberta (see below).
Corporate income tax has been levied by the province since the 1940s.
All incorporated businesses with a permanent establishment (e.g.,
office, mine, farm, oil well, etc.) in Alberta at any time in a taxation
year pay income tax on the portion of their taxable income allocated
The Alberta calculation of taxable income parallels the federal calculation, although taxpayers may claim different discretionary deductions such as capital cost allowances for federal and provincial purposes. The allocation of income among provinces is generally standardized across the country.
Canadian-controlled private corporations not in an associated group may claim a small business deduction on active business income (i.e., non-investment income) up to the small business threshold of $500,000. Canadian-controlled private corporations in an associated group share the maximum small business threshold. For more information about the small business deduction, see information circular CT-17, Alberta Small Business Deduction. Please also see Special Notice Vol. 5 No. 45, Alberta Small Business Tax Rate Reduction, and FAQs.
The insurance premiums tax is payable by insurance companies for premiums receivable on contracts of life, accident, sickness and all other contracts of insurance transacted in Alberta during the year.
The insurance premiums tax return (AT2095) and remittance must be received by Tax and Revenue Administration (TRA) on or before the 75 day following the taxation year-end. Insurers will be charged a late filing penalty if they file their AT2095 late. Interest on late remittances will also apply.
The AT2095 can be submitted to TRA electronically using the online Tax and Revenue Administration Client Self-service (TRACS) filing system, by fax, or by mail.
Along with the return, you may be requested to provide a copy of one of the following documents from the fourth quarter return submitted to the Superintendent of Insurance:
- Property and Casualty pages 67.10 and 93.30
- Life pages 95.010 and 95.020
For more information, see Information Circular CT-21 – Insurance Premiums Tax and Special Notice Vol. 5 No. 37 – Alberta Corporate Tax Amendment Act, 2012.
Special Notice Vol. 5 No. 43 – Insurance Premiums Tax Increase outlines the last insurance premiums tax rate increase, effective April 1, 2016.
Alberta's scientific research and experimental development tax credit program provides a refundable tax credit to corporations for SR&ED expenditures incurred in Alberta by the corporations.
See Alberta Corporate Tax Rates and Small Business Deduction (from January 2000 to current).