April 14, 2016, No. 2016-20. Alberta Finance Minister Joe Ceci delivered the province’s 2016 budget on April 14, 2016. The budget anticipates a deficit of $10.4 billion for the 2016-2017 fiscal year, with anticipated deficits of $10.1 billion for 2017-2018 and $8.4 billion for 2018-2019. The budget reduces the small business corporate income tax rate to 2% (from 3%), provides details on the proposed carbon pricing and includes other economic measures to support small business, among other changes. Highlights of tax measures announced in the budget are summarized below.
The budget reduces the small business corporate income tax rate to 2% (from 3%) effective January 1, 2017. As a result, Alberta’s corporate income tax rates will be as follows
The budget provides $75 million for the new Capital Investment Tax Credit for corporations that make investments in eligible capital assets. The credit will apply to the first time acquisition of new and used property in value-added agriculture, manufacturing and processing, tourism infrastructure and culture industries. The budget provides no further details on this proposed measure.
Download this edition of the TaxNewsFlash to learn more.
Information is current to April 14, 2016. The information contained in this TaxNewsFlash-Canada 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.