Canada: Corporate income tax rate reduced to 8%, as of July 2020 (Alberta)
Canada: Corporate income tax rate reduced to 8%
Bill 35—that would reduce Alberta’s general corporate income tax rate to 8% (from 10%)—received first reading on 20 October 2020.
The corporate income tax rate reduction was previously announced, and with Bill 35, it would be effective retroactively beginning 1 July 2020 (and not 1 January 2022 as previously proposed).
Another measure, a new innovation employment grant, would provide a refundable tax credit to certain small and medium-sized Alberta-based companies that invest in research and development (R&D) after 31 December 2020.
The bill also includes measures granting ministerial authority for certain temporary deadline extensions, and would change the eligible dividend tax credit rate effective in 2021.
Read an October 2020 report [PDF 277 KB] prepared by the KPMG member firm in Canada
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