https://www.kpmg.com/Ca/en/IssuesAndInsights/ArticlesPublications/TNF/PublishingImages/TaxNewsFlashBanner-en2.jpg

 

March 7, 2013

No. 2013-06

 

 

Highlights of the 2013 Alberta Budget

Today Alberta Finance Minister Doug Horner delivered the province’s 2013 budget. The budget does not include any corporate or personal income tax rate changes or any other significant income tax measures.

The only tax rate change in this year’s budget applies to the Education Property Tax.

Business Tax

Corporate income tax rates

The budget did not announce any changes to the corporate tax rate. As a result, the corporate income tax rates effective January 1, 2013 remain as follows:

Corporate Income Tax Rates — As of January 1, 2013

 

Alberta

Combined Federal and Alberta

General

10%

25%

M&P

10%

25%

Small business*

3%

14%

*On first $500,000 of active business income

Personal Tax

Personal income tax rates
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:

Personal Combined Top Marginal Tax Rates for 2013

Interest and regular income

39.0%

Capital gains

19.5%

Eligible dividends

19.3%

Non-eligible dividends

27.7%

Indexation of personal tax credits  

The budget notes that the indexation factor for 2013 is 1.8%, meaning that the basic personal and spousal tax credits will increase to $17,593 for 2013 (from $17,282 for 2012).

Education Property Tax

Education property tax rates reduced

Education property tax rates will be reduced by 1.8% in 2013. As such, the residential/farmland property tax rate will be reduced to $2.65 per $1,000 of equalized assessment (from $2.70). The non-residential rate will be reduced to $3.90 per $1,000 of equalized assessment (from $3.97).

Download KPMG’s new Tax Hub Canada app

KPMG’s free Tax Hub Canada App for iPads and Blackberrys provides timely, convenient tax news and tax rates to help you respond to changes in tax rules and regulations. Download the app today.

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 7, 2013. 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.

 

KPMG LLP, an Audit, Tax and Advisory firm (kpmg.ca) and a Canadian limited liability partnership established under the laws of Ontario, is the Canadian member firm of KPMG International Cooperative (“KPMG International”). KPMG member firms around the world have 145,000 professionals, in 152 countries.

 

The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss entity. Each KPMG firm is a legally distinct and separate entity, and describes itself as such.

KPMG's Canadian Web site is located at http://www.kpmg.ca/

© 2013 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

 

The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.