Alberta Budget 2019: Tax Plan, part 1
• Job Creation Tax Cut: Alberta will be cutting corporate business tax rates from 12% to 8% by 2022. As of July 2019, Alberta already has the lowest general corporate tax rate in Canada at 11% and will have the lowest rate when the Job Creation Tax Cut is fully implemented by January 2022 with 8% corporate tax rate.
• Low taxes for all industries: Alberta will be eliminating targeted tax credits that benefit certain corporations – Alberta Investor Tax Credit, Community Economic Development Corporation Tax Credit, Capital investment tax credit, Interactive Digital Media tax credit and the Scientific research and experiment development tax credit. The elimination of these tax credits will reduce expenditures by over $400 million by 2022-23. Instead of using these targeted tax credits, Alberta’s plan is to proceed with the corporate tax rate reductions and enhance the Capital Cost Allowances to provide greater boost to overall business competitiveness.
• Alberta Child and Family Benefit: Starting July 2020, the new Alberta Child and Family Benefit will replace the Alberta Family Employment tax credit and the Alberta child benefit to provide more benefits to lower income families while reducing administrative costs.
• Freezing the personal income tax system: Personal income tax rates and tax brackets will remain at 2019 levels. Alberta’s non-refundable tax credits and basic personal amount will also remain at 2019 levels.
Please check back for more tax measures included in Alberta’s Budget 2019.