Big News for Alberta Business

The Federal Tax System and New Provincial Bills in Alberta

In 2018, Liberal MP’s claimed that through lowering Federal business tax rates, that small businesses would save up to $7,500 per year on taxes. However, according to a local accounting firm who did the math, these numbers didn’t add up.

Working with local businesses, we know other small business owners who are challenging these statements too as they wrestle through Canada’s current economic climate. As advocates for local business, we have been keeping our eyes on Federal and Provincial policies to ensure we are always negotiating the best terms for current environments. We love how Achen Henderson discusses “small businesses being under attack” and the topic of Federal Tax Reform at Parliament in this video.

On a more local note, since their recent election, the United Conservative Party implemented two new bills which can have substantial impacts on our clients, and local businesses across Calgary. These two bills are:

Bill 2: “An Act to Make Alberta Open or Business”

Bill 3: “The Job Creation Tax Cut Act”.

Staying up-to-date with legislation is just another part of our job as commercial real estate brokers who maximize results for our clients.

What do these Bills mean for your business? 

Bill 2: An Act To Make Alberta Open For Business

  • Holiday pay eligibility

To be eligible for stat pay, an employee must have worked at the company for over 30 days within the 12 months preceding the holiday. Those who do not show up to work on days before, after, or during the holiday are not eligible to receive payment. 

  • Reduced minimum wage for minors

For those under 18, the minimum wage is $13/hour. The Canadian government believes that this will create more opportunities for Canadian youths to gain employment.

Bill 3: The lowest tax rate in North America

Since July 1st, 2019, Alberta has had the lowest provincial (and combined) general corporate tax rate in Canada. From 2019 until 2022, Alberta’s general corporate income tax rate will drop from 12% to 9%. To note, the provincial small business tax rate remains the same at 2%. Watch out for 2022 however, when Alberta will have the lowest combined tax rate in all of North America. How will Alberta maintain a strong, competitive market landscape in the coming years?

Resources: Achen Henderson