Low corporate income tax rates make Alberta’s Industrial Heartland (AIH) a prime location for development. AIH municipalities offer some of the most cost competitive property taxes in the world. Investors in Alberta enjoy the lowest gasoline tax among the provinces. With no capital tax, no retail sales tax, and no payroll tax, investors benefit from a distinctly welcoming economic climate!
Alberta Treasury Board & Finance develops policy to ensure taxes remain competitive by removing unnecessary rules and regulations and promoting a positive labour environment. Low overall business taxes are based on the provincial government’s desire to improve productivity and support an atmosphere where business can continue to succeed. In addition, significant tax incentives for research and development are provided by the federal government.
Alberta’s low capital investment taxes encourage businesses to increase innovation and boost productivity by investing in new technologies and machinery.
Additional Business Tax Resources
Alberta businesses benefit from low corporate income tax rates. Alberta’s positive business climate includes a combined federal/provincial corporate income tax rate of 32.12% for general businesses and 16.12% for small businesses.
The Government of Alberta does not have:
provincial retail sales tax (Alberta is the only Canadian province without a sales tax)
provincial general capital tax
Due to strong overall growth in assessment and the limited requisition increase, the province has reduced uniform education property tax rates by about 5.8% for the 2007 tax year.
Competitive Alternatives: KPMG’s guide to international business costs is a guide for comparing business costs in North America, Europe, and Asia Pacific. It reports on the combined impact of 26 significant business costs most likely to vary by location.
Additional Provincial Tax Resources
Alberta Finance and Enterprise – Tax and Revenue Administration
Service Alberta – Government of Alberta business forms and programs
Businesses locating in Alberta, and especially in the Heartland municipalities, are subject to some of the most cost competitive property taxes in the world. Two levies apply to Alberta’s assessable property: municipal levies which fund community services, and the Alberta School Foundation Fund which is collected to help finance education.
Property assessment is based on market value and a regulated value set according to the Municipal Affairs Acts and Regulations. Property assessment consists of land and building values, and in the case of industrial operations, machinery and equipment is also taxed. Machinery and equipment includes such things as underground tanks, separators, fuel gas scrubbers, compressors, chemical injectors, and metering and analysis equipment.
Machinery and equipment is used in conjunction with properties such as refineries, chemical plants, pulp and paper plants, and oilsands plants. Most machinery and equipment is assessed by the local assessor, while machinery and equipment forming part of linear property is assessed by the assessor designated by the Minister of Municipal Affairs and a regulated value set according to the Municipal Affairs Acts and Regulations.
If locating in the City of Edmonton, businesses should note that Edmonton does not have a business tax (except in locally run business revitalization zones). Edmonton also does not charge a tax against machinery and equipment. This provides industrial investors with significant savings on equipment intensive construction. Most businesses, therefore, pay only a non-residential property tax.
The Ministry of Municipal Affairs provides information on tax rates for each Alberta municipality.