Alberta 2015 Budget Bill Receives Royal Assent | KPMG | CA

Alberta 2015 Budget Bill Receives Royal Assent

Alberta 2015 Budget Bill Receives Royal Assent

Canadian Tax Adviser, December 22, 2015. Changes to Alberta's personal tax credits are among the measures included in a new Alberta budget bill, which received Royal Assent on December 11, 2015. Alberta Bill 4 enacts several of the tax measures that were announced by the province's NDP government in the Budget it put forward on October 27, 2015.

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Among other changes, Bill 4 includes tax measures to

  • Revise and introduce certain personal tax credits and benefits, including 
    • Changes to the non-eligible dividend tax credit-due to the federal government's changes to the factors used to calculate the federal dividend tax credit for non-eligible dividend. Following these changes, the Alberta dividend tax credit rate on actual, non-eligible dividends remains relatively stable from 2015 to 2019.
    • The introduction of the Alberta Child benefit
    • Increased benefits from the Alberta Family Employment Tax Credit
    • Confirmation that the province's charitable donations tax credit will remain at 21% for donations greater than $200
  • Increase the insurance premium tax rates for premiums receivable by an insurer to 3% on premiums for life, accident and sickness insurance (from 2%), and to 4% on other contracts of insurance (from 3%). This change will take effect on April 1, 2016; and
  • Increase the locomotive fuel tax to 5.5 cents per litre (from 1.5 cents), effective November 1, 2015.

Bill 4 is enacted for U.S. GAAP purposes on December 11, 2015, the date the bill received Royal Assent. Bill 4 was substantively enacted for purposes of IFRS and Accounting Standards for Private Enterprises (ASPE) as of October 27, 2015, when it received first reading in the provincial legislature (Alberta has a majority government).

For more information, see TaxNewsFlash “Highlights of the 2015 Alberta Budget” or contact your KPMG adviser.

 

Disclaimer

 Information is current to December 22, 2015. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

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