The tax system
The tax system in Alberta is administered at two levels:
- The Canada Revenue Agency administers Canada's federal tax laws.
- Alberta Finance administers Alberta's tax laws.
Residence Requirements
Canada imposes taxes on the basis of residency, not citizenship.
- Residents and non-residents are subject to Canadian tax on income.
- Canadian residents are subject to taxes on income earned anywhere in the world.
- Non-residents are generally taxed only on income and capital gains earned in Canada.
There may be tax relief or reduction if a bilateral income tax treaty exists between Canada and another country.
Canada Revenue Agency residency information:
Tax advantages
Alberta offers one of the most competitive business tax environments in North America – no provincial sales tax (PST), provincial capital taxes, payroll taxes, or machinery and equipment taxes.
Canada’s Budget 2010 includes a number of tax reductions that will affect individuals, families and businesses.
Budget 2010 states, “this year, Canada will have the lowest overall tax rate on new business investment in the G7, and by 2012, Canada will have the lowest statutory corporate income tax rate in the G7.”
More information about taxes in Alberta and Canada:
- Branches and subsidiaries tax
- Corporate tax law - Alberta
- Corporate tax law – Canada
- Federal Good and Services Tax
- Other duties and taxes
- Partnerships tax
- Personal income tax
- Sole proprietorship tax
Date Updated:
RDP-1692
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