Taxes & Incentives

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Taxes & Incentives

Corporate Taxes

The province of Alberta has a highly competitive corporate tax structure. It is the only province that does not have provincial retail sales tax, and there are no provincial payroll taxes, which are common in many other provinces.

Corporate Tax Rate (%) – 2016
General Manufacturing & Processing * CCPC – Small Business (active business income earned in Canada to $500K)
Provincial (Alberta) 12 12 3
Federal (Canada) 15 15 10.5
Combined Total Rate 27% 27% 13.5%

* CCPC – A Canadian Controlled Private Corporation (CCPC) is a private corporation which is controlled by Canadian residents. A corporation will not qualify as a CCPC if it is controlled directly or indirectly by a public corporation or non-residents, or a combination of the two. A CCPC is eligible for the small business deduction, which provides a reduction in corporate income tax on active business income.

Incentives

While there are typically no direct land tax incentives provided by municipalities in Canada, there are a large number of provincial and federal grant programs available to both national and foreign companies. They assist in lowering financing and operating costs and are available for:

Business Operations

  • Research and development
  • New technology development and commercialization
  • Tax credits
  • Wage subsidies

Financing

  • Loans
  • Loan guarantees
  • Equity investments

Go to our Grants section to see what programs match your needs.