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Daily Tax Report: International

Alberta Cuts Corporate Tax Rate Early to Help Spur Recovery

June 29, 2020, 9:26 PM

Alberta is speeding up a planned cut to the corporate income tax rate to help revive an economy hit by both the pandemic and the global oil price crash.

  • The rate will drop to 8% from 10% on July 1, a year and a half early, Premier Jason Kenney said Monday. The province began a process of gradually dropping the rate from 12% last July to give the province one of the lowest tax rates in Canada and the U.S.
  • The tax cut is expected to increase investment by C$4 billion ($2.9 billion) per year by 2023 and could add 55,000 jobs by 2022, the government said.
  • The accelerated cut is part of an economic recovery plan that includes C$10 billion in infrastructure spending. The plan also includes a refundable tax credit for companies that invest in research and development.
  • Alberta’s oil sands contain the world’s third-largest oil reserves.

To contact the reporter on this story: James Munson in Toronto at correspondents@bloomberglaw.com
To contact the editors responsible for this story: Meg Shreve at mshreve@bloombergtax.com; Kathy Larsen at klarsen@bloombergtax.com

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