Cutting the small business tax rate by one third reinforces Alberta businesses’ overall tax advantage compared to other provinces in Canada.
As part of Alberta’s Climate Leadership Plan, government is reducing the small business tax rate from three per cent to two per cent, effective January 1, 2017. This measure will help Alberta small businesses adjust to the cost of carbon, while supporting businesses and the economy during the current downturn.
“I am proud of the steps we’re taking to turn Alberta into a leader in the fight against climate change. This tax reduction will not only increase Alberta’s already substantial tax advantage for small businesses, but will help them as they work to reduce their greenhouse gas emissions.”
Rachel Notley, Premier
“We understand and appreciate the struggles Alberta’s small business owners are facing right now. This rate cut will provide small businesses with needed relief and will encourage their efforts to grow their enterprises.”
Joe Ceci, President of Treasury Board, Minister of Finance
After the rate change, Alberta will be tied for the second-lowest small business rate in the country. The tax reduction will mean a savings of $185 million for small business owners in 2017-18. Alberta businesses will also continue to benefit from low personal income tax rates, no payroll tax, no sales tax, and no health premiums.
“This is certainly welcome news for the business community in Alberta. The tax cut will help small businesses move forward and put them in a position to grow our small business sector and create the jobs this province needs.”
Poul Mark, Owner, Transcend Coffee
Supporting Alberta business is one of the four key pillars of the Alberta Jobs Plan, as outlined in Budget 2016. The Alberta government is also supporting Alberta business with new tax credits to encourage access to capital, valued at $165 million.