The tax system
The tax system in Alberta is administered at two levels:
- The Canada Revenue Agency administers Canada's federal tax laws.
- Alberta Finance administers Alberta's tax laws.
Residence Requirements
Canada imposes taxes on the basis of residency, not citizenship.
- Residents and non-residents are subject to Canadian tax on income.
- Canadian residents are subject to taxes on income earned anywhere in the world.
- Non-residents are generally taxed only on income and capital gains earned in Canada.
There may be tax relief or reduction if a bilateral income tax treaty exists between Canada and another country.
Canada Revenue Agency residency information:
Tax advantages
Alberta offers one of the most competitive business tax environments in North America – no provincial sales tax (PST), provincial capital taxes, payroll taxes, or machinery and equipment taxes.
Canada’s Budget 2010 includes a number of tax reductions that will affect individuals, families and businesses.
Budget 2010 states, “this year, Canada will have the lowest overall tax rate on new business investment in the G7, and by 2012, Canada will have the lowest statutory corporate income tax rate in the G7.”
More information about taxes in Alberta and Canada
- Branches and subsidiaries tax
- Find out about the different tax implications for establishing either a branch or a subsidiary in Canada.
- Corporate tax law - Alberta
- Find information on Alberta corporate tax legislation, corporate income tax rates and filing corporate tax forms.
- Corporate tax law – Canada
- Find information on Canada's corporate tax legislation administered by Canada Revenue Agency (CRA).
- Federal Good and Services Tax
- Find information about Canada's Goods and Services Tax (GST). It is a 5% federal tax that applies to the consumption or use of most goods and services in Canada.
- Other duties and taxes
- Find out about the other duties and taxes that should be considered when operating a business in Canada.
- Partnerships tax
- Find out about the taxation requirements for a business partnership.
- Personal income tax
- Find useful information about personal tax requirements and forms.
- Sole proprietorship tax
- Find information about taxation requirements for a sole proprietorship business.
Economic highlights
Browse the latest presentations, reports, and reviews on Alberta’s economic performance.
Employment and labour relations
Find out about the employment-related legislation in every province.
Date Updated: Tue, 12 Jun 2012 01:07:02
RDP: 1197