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ARTICLE · 03 JULY 2020

Alberta Advantage: Reduced Corporate Tax Rate Effective July 1, 2020

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On June 29, 2020, the Government of Alberta introduced Alberta's Recovery Plan which will, among other things, reduce Alberta's general corporate income tax rate to 8%, effective July 1, 2020.

CanadaTax
Jared Mackey
Jared Mackey
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On June 29, 2020, the Government of Alberta introduced Alberta's Recovery Plan which will, among other things, reduce Alberta's general corporate income tax rate to 8%, effective July 1, 2020.

Alberta's previously announced "Job Creation Tax Cut" (Bill 3) has already reduced Alberta's corporate rate from 12% to 11%, effective July 1, 2019, and from 11% to 10%, effective January 1, 2020. The current 10% rate was scheduled to be reduced to 9% on January 1, 2021 and to 8% on January 1, 2022. The Government has thus accelerated the scheduled reductions by a year and half. As a result, the combined Federal-Alberta general corporate tax rate will immediately drop from 25% to 23%. As summarized in the following table, Alberta will now have the lowest general corporate tax rate in Canada by a significant margin:

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