Today Alberta Finance Minister Doug Horner delivered the province’s 2014 budget. The budget does not include any corporate or personal income tax rate changes or any other significant income tax measures.
Highlights of tax measures in the budget are noted below.
Corporate income tax
The budget did not announce any changes to the corporate income tax rate. As a result, the corporate income tax rates effective January 1, 2014 remain as follows:
Qualifying environmental trusts
The budget reaffirms Alberta’s announcement in December 2013 that, effective January 1, 2014, it will parallel certain measures of the federal qualifying environmental trusts tax regime. Taxpayers with future reclamation obligations are generally eligible to use the Qualifying Environmental Trust Rules to claim a deduction for amounts contributed to a Qualifying Environmental Trust established for the purpose of funding the future reclamation of a qualifying site.
Personal income tax
No changes to Alberta’s 10% flat personal income tax rate were announced in the budget. As a result, Alberta’s combined federal and provincial top marginal tax rates remain as follows:
Other Tax Measures
Education property tax
The budget proposes to reduce the mill rates for the Education Property Tax by 4.5% as follows:
- Residential/farmland — $2.53 (from $2.65) per $1,000 of equalized assessment
- Non‑residential —$3.72 (from $3.90) per $1,000 of equalized assessment.
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We can help
Your KPMG adviser can help you assess the effect of the tax changes in this year’s Alberta budget on your personal finances or business affairs, and point out ways to take advantage of their benefits or ease their impact. We can also keep you abreast of the progress of these proposals as they make their way into law and help you bring any concerns you may have to the attention of the Alberta Ministry of Finance.
Information is current to March 6, 2014. The information contained in this TaxNewsFlash-Canada is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG’s National Tax Centre at 416.777.8500.
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