Overview

Since the 1940s, all incorporated businesses with a permanent establishment (e.g., office, mine, farm, oil well, etc.) in Alberta at any time in a taxation year pay income tax on the portion of their taxable income allocated to Alberta.

Tax and Revenue Administration (TRA) administers the Alberta Corporate Tax Act that provides the calculation of Alberta corporate income tax, including the Alberta small business deduction and tax credits.

The Alberta calculation of taxable income parallels the federal calculation, although taxpayers may claim different discretionary deductions such as capital cost allowance for federal and provincial purposes.

Deduction and tax credits

Small business deduction

Canadian-controlled private corporations not in an associated group may claim a small business deduction on active business income (i.e., non-investment income), up to the small business threshold of $500,000. Canadian-controlled private corporations in an associated group share the maximum small business threshold.

For more information about the small business deduction:

• Information Circular CT-17, Alberta Small Business Deduction (updated May 2019)
• Special Notice Vol. 5 No. 45, Alberta Small Business Tax Rate Reduction (April 2016)

Scientific Research and Experimental Development Tax Credit

Bill 20, the Fiscal Measures and Taxation Act, 2019 received Royal Assent on December 5, 2019, and Alberta’s Scientific Research and Experimental Development Tax Credit (SR&ED) is being eliminated. For more information, see Special Notice Vol. 5 No. 54, Budget 2019 Elimination of Corporate Tax Credits.

Alberta’s Scientific Research and Experimental Development Tax Credit (SR&ED) program provides a refundable tax credit to corporations for SR&ED expenditures carried out in Alberta by the corporations.

More information and forms:

• Information circular SRED-1R3 – Alberta Scientific Research and Experimental Development (SR&ED) Tax Credit (September 2019)
• Guide to Claiming the SR&ED Tax Credit (PDF, 890 KB) (April 2013)
• AT1 Schedule 9 (Form AT190) – SR&ED Tax Credit (PDF, 295 KB) (October 2012)
• AT1 Schedule 9 Supplemental (Form AT192) (PDF, 273 KB) (January 2013)
  • For taxation years ending on or before March 31, 2012. This form has been developed for calculating the Grind. Claimants are to use it with AT1 Schedule 9.
• AT4960 – Listing of SR&ED Projects Claimed in Alberta (PDF, 472 KB) (October 2009)

Foreign Investment Income Tax Credit

A corporation may be entitled to claim an Alberta Foreign Investment Income Tax Credit if it received foreign investment income and is entitled to claim a foreign tax credit under the federal Act relating to foreign income or profits tax paid on income from foreign non-business sources. Foreign investment income is income earned outside Canada that is not reasonably attributable to the carrying on of the corporation’s business. See the following schedule:

• AT1 Schedule 4 (Form AT201) – Alberta Foreign Investment Income Tax Credit (PDF, 273 KB) (July 2012)

Other tax credits

Bill 20, the Fiscal Measures and Taxation Act, 2019 received Royal Assent on December 5, 2019, and the Alberta Investor Tax Credit, Community Economic Development Corporation Tax Credit, Capital Investment Tax Credit, and Interactive Digital Media Tax Credit are being eliminated. For more information, see Special Notice Vol. 5 No. 54, Budget 2019 Elimination of Corporate Tax Credits, or the Budget 2019 Tax Plan (PDF, 7.5 MB).

Together with Alberta Economic Development, Trade and Tourism, Tax and Revenue Administration administers the following tax credits:

• Film and Television Tax Credit (FTTC)
  • For more information, see Special Notice Vol. 5 No. 55, Film and Television Tax Credit
• Capital Investment Tax Credit (CITC)
• corporate portion of the Alberta Investor Tax Credit (AITC)
• corporate portion of the Community Economic Development Corporation Tax Credit (CEDCTC)

Who has to file

Unless it is exempt, a corporation is required to file an Alberta corporate income tax return (AT1) if it had a permanent establishment in Alberta at any time during the taxation year.

To determine if your corporation is exempt, complete the Exemption Criteria section in AT100, Preparing and Filing the Alberta Corporate Income Tax Return (PDF, 312 KB).

Additional information on who is not required to file, who is exempt and the definition of a permanent establishment are outlined in Information Circular CT-2, Filing Requirements.

How to file

Returns are due within 6 months from the end of a corporation’s tax year end.

• See Information Circular CT-2, Filing Requirements, for more information.

Net file

Using certified software, taxpayers or service providers can use net file to electronically submit an Alberta corporate income tax return, including reassessments or amended returns. Net file provides the user with immediate receipt confirmation, faster processing and the convenience of filing from anywhere.

There is no access code or registration required.

Net file is available Monday to Saturday, 07:00 to 24:00 MST and on Sunday 17:30 to 24:00 MST.

Net file eligibility

To file a corporate income tax return (AT1) using net file, the corporation must meet all of the following criteria:

• the return has a valid Alberta corporate account number (CAN)
• the taxation year ends after December 31, 2007

Net file of returns by corporations

For returns for taxation years ending after December 31, 2017, any corporation whose gross revenue exceeds $1 million is required to net file its Alberta AT1 Returns.

The following are exceptions where the corporation is not required to net file:

• an insurance corporation defined in subsection 248(1) of the federal Income Tax Act,
• a non-resident corporation,
• a corporation reporting in functional currency as defined in subsection 261(1) of the federal Income Tax Act, or
• a corporation that is exempt from taxation under section 35 of the Alberta Corporate Tax Act and section 149 of the federal Income Tax Act.

Net file of returns by tax preparers

For returns for taxation years ending after December 31, 2017, a tax preparer is required to net file AT1 Returns in circumstances where the tax preparer accepts consideration to prepare more than 10 returns.

The following are exceptions where the tax preparer is not required to net file:

• a type of return for which the tax preparer has applied for and received permission from TRA to file by another method,
• a type of return that TRA does not accept by electronic filing, or
• a return for the following types of corporations:
  • an insurance corporation defined in subsection 248(1) of the federal Income Tax Act,
  • a non-resident corporation, or
  • a corporation reporting in functional currency as defined in subsection 261(1) of the federal Income Tax Act.

Net file certified software

The return must be generated and submitted using TRA-certified tax return preparation software.

For a list of certified software offering net file capability, see Software Certified for AT1 Net File Return Format for 2008 and Subsequent Taxation Years.

Refer to each software product for specific system requirements, instructions, and procedures on preparation and submission of returns in net file format.

Paper

• complete the AT1 Alberta Corporate Income Tax Return and Schedules
• see the listing of Software Certified for AT1 Returns (AT1 RSI) for 1998 and subsequent taxation years
• submit your completed return and applicable schedules to TRA

How to pay

If you have a February tax year end with an amount owing, instruct the payment to be applied to the same tax year end date on your tax return. For example, if your Tax Year End Date is February 29, 2020, ensure that the payment is instructed to be applied to February 29, 2020 as well.

Remittance due dates

Instalment payments are due the last day of each month, and the remaining balance, if any, is due as follows. If the due date falls on a weekend or holiday, then the due date is the next business date.

Canadian Controlled Private Corporations (CCPCs)

• on or before end of the third month following the taxation year

Other corporations

• on or before the end of the second month following the taxation year

CCPCs exempt from instalments

• total tax is due by the end of the third month following the taxation year end

Other corporations exempt from instalments

• total tax due by the end of second month following the taxation year end

See Information Circular CT-3, Alberta Corporate Tax Instalments, for more information.

Making payments

• Visit Making payments for more information
• Related: TRA prescribed interest rates

Maintain your account in TRACS

TRA Client Self-Service (TRACS) is a secure online system for authorized clients to conveniently conduct business with TRA. You can do the following tasks in TRACS:

• confirm receipt and completion of submitted returns
• view status of prior assessments, financial details and notices of assessment and reassessment
• access financial information and view account period balances
• update address and contact information
• delegate account access to other employees or authorized individuals
• set up direct deposit for corporate income tax refunds

For more details, instructional videos and to log in to your TRACS account, see TRACS information.

How to apply for direct deposit

Direct deposit is a convenient, reliable, and secure way to receive a refund from TRA.

Step 1: Register for TRACS (TRA Client Self-Service)

• Complete the TRACS Enrolment Request to enrol in TRACS or contact TRA.
• Visit the TRACS page for more information.

Step 2: Sign up for direct deposit in TRACS

• Log in to your TRACS account and select ‘Manage Direct Deposit’.
• Enter your banking and contact information and submit.
• For an instructional video, see TRACS videos.

Publications

Information circulars

These documents discuss procedural matters and administrative policies and practices for programs administered by TRA. They are updated as necessary and a revision number assigned.

Cross-program information circulars

• TRA-1 – An Introduction to Tax and Revenue Administration (March 2018)
• TRA-2 – TRA Fairness and Service Pledge (July 2018)

Corporate income tax information circulars and SR&ED Tax Credit Guide

• CT-2R7 – Filing Requirements (May 2020)
• CT-3R4 – Alberta Corporate Income Tax Instalments (March 2014)
• CT-4R7 – Interest and Penalties (October 2017)
• CT-5R5 – Waiver or Cancellation of Penalties and/or Interest (March 2011)
• CT-6R1 – Reassessments (April 1999)
• CT-7R2 – Calculation and Deduction of Losses (April 1999)
• CT-8R4 – Objections and Appeals (September 2014)
• CT-9R1 – Alberta Corporate Income Tax Collections (September 2014)
• CT-10R1 – The Tax Audit (November 2005)
• CT-11R3 – Voluntary Disclosures (June 2018)
• CT-13R1 – Records and Books (November 2005)
• CT-15R2 – Clearance Certificates (July 2012)
• CT-17R8 – Alberta Small Business Deduction (May 2019)
• CT-21R4 – Insurance Premiums Tax (January 2016)
• CT-23 – Functional Currency Tax Reporting (August 2010)
• CT-24 – Qualifying Environmental Trusts (February 2016)
• SRED-1R3 – Alberta Scientific Research and Experimental Development (SR&ED) Tax Credit (September 2019)
• Guide to Claiming the SR&ED Tax Credit (PDF, 890 KB) (April 2013)

Interpretation bulletins

These documents explain legislation and provide specific information related to Alberta Corporate Income Tax. Interpretation bulletins are updated as necessary and a revision number assigned.

• CTIB-1R2 – Taxability of a Corporation in Alberta on the Basis of Permanent Establishment (October 2017)
• CTIB-3R1 – Corporations allocating Income among Permanent Establishments in more than one Jurisdiction (July 2012)

Special notices

These documents are used to announce changes to the legislation administered by TRA, or changes to administrative policies and practices carried out by TRA. These notices are time-specific, and meant to be transitory in nature. The information may eventually be incorporated into other publications, such as information circulars or web content.

• Vol. 5 No. 58 – Accelerated Job Creation Tax Cut (June 30, 2020)
• Vol. 5 No. 57 – Extension to Alberta Corporate Income Tax Return (AT1) Filing Deadline (updated May 28, 2020)
• Vol. 5 No. 56 – Deferral of Corporate Income Tax Payments (updated April 30, 2020)
• Vol. 5 No. 55 – Film and Television Tax Credit (FTTC), 2020 (February 2020)
• Vol. 5 No. 54 – Budget 2019 Elimination of Corporate Tax Credits (November 2019)
• Vol. 5 No. 53 – Application of the federal Immediate Expensing and Accelerated Investment Incentive measures (July 2019)
• Vol. 5 No. 52 – Job Creation Tax Cut (May 2019)
• Vol. 5 No. 51 – Interactive Digital Media Tax Credit (November 2018)
• Vol. 5 No. 50 – Community Economic Development Corporation Tax Credit (October 2018)
• Vol. 5 No. 49 – Tax Statutes Amendment Act, 2018 (July 2018)
• Vol. 5 No. 48 – Mandatory electronic filing (December 2017)
• Vol. 5 No. 47 – Tax Statutes Amendment Act, 2017 (July 2017)
• Vol. 5 No. 46 – Bill 30 – Corporate tax amendments – tax credits (Alberta Investor and Capital Investment) (June 2017)
• Vol. 5 No. 45 – Alberta Small Business Tax Rate Reduction effective January 1, 2017 (April 2016)
• Vol. 5 No. 44 – Bill 4 – Corporate Tax Amendments (February 2016)
• Vol. 5 No. 43 – Insurance Premiums Tax Increase (November 2015)
• Vol. 5 No. 42 : Bill 2 – An Act to Restore Fairness to Public Revenue, and Alberta Corporate Tax Rate Change (July 2015)
• Vol. 5 No. 41 – Administration of the Qualifying Environmental Trust Tax and Alberta QET tax credit (March 2015)
• Vol. 5 No. 40 – Tax Statutes Amendment Act, 2014 (June 2014)
• Vol. 5 No. 39 – Qualifying environmental trusts (December 2013)
• Vol. 5 No. 38 – Tax Statutes Amendment Act, 2013 (July 2013)
• Vol. 5 No. 37 – Alberta Corporate Tax Amendment Act, 2012 (January 2013)
• Vol. 5 No. 34 – Reassessment of Alberta objections with unresolved matters (November 2010)
• Vol. 5 No. 33 – Refund interest rate reduction grandfathering treatment for objections (November 2010)
• Vol. 5 No. 32 – Alberta Corporate Tax Amendment Act, 2010 (April 2010)

Certified software for corporate income tax returns

• Certified software for net file
• Certified software for AT1 RSI

Form instructions

Trouble opening or completing fillable PDF forms?

Fillable PDF forms do not open properly on some mobile devices and web browsers. If the form doesn’t open, or you can’t complete the form, or you see a “please wait” message, follow these steps to complete and save fillable forms from Tax and Revenue Administration (TRA):

1. Right-click on the form link and select “Save Target As” or “Save Link As”, and save the form to your computer.
2. Launch Adobe Reader.
3. Open the PDF from within Adobe Reader. You can now fill and save your form.

Electronic signatures allowed

In order to reduce the necessity for taxpayers and tax preparers to meet in person, TRA will recognize electronic signatures. This administrative measure applies to all prescribed forms administered by TRA. To add a digital signature, the form must first be downloaded or opened as a PDF.

To submit your forms

Complete your forms and submit them to TRA.

Forms

AT1: Alberta Corporate Income Tax Return and Schedules

• AT100 – Preparing and Filing the Alberta Corporate Income Tax Return (PDF, 312 KB) (August 2019)
• AT1 – Alberta Corporate Income Tax Return for 2001 and Subsequent Taxation Years:
  • for taxation years ending on or after July 1, 2019 (PDF, 257 KB) (July 2019)
  • for taxation years between January 1, 2001 and June 30, 2019 (PDF, 337 KB) (June 2018)
• AT1 Schedule 1 (Form AT2) – Alberta Small Business Deduction:
  • for taxation years ending on or after July 1, 2019 (PDF, 244 KB) (October 2019)
  • for taxation years between January 1, 2017 and June 30, 2019 (PDF, 314 KB) (June 2016)
  • for taxation years ending on or before December 31, 2016 (PDF, 319 KB) (June 2015)
• AT1 Schedule 2 (Form AT271) – Alberta Income Allocation Factor (PDF, 296 KB) (July 2012)
• AT1 Schedule 3 (Form AT3) – Alberta Other Tax Deductions and Credits (PDF, 280 KB) (November 2018)
• AT1 Schedule 4 (Form AT201) – Alberta Foreign Investment Income Tax Credit (PDF, 273 KB) (July 2012)
• AT1 Schedule 5 (Form AT176) – Alberta Royalty Tax Deduction (PDF, 300 KB) (July 2012)
• AT1 Schedule 8 (Form AT5) – Alberta Political Contributions Tax Credit (PDF, 290 KB) (July 2012)
• AT1 Schedule 9 and Schedule 9 Supplemental (Forms AT190 and AT192)
  • see below for Alberta Scientific Research and Experimental Development (SR&ED) Tax Credit forms
• AT1 Schedule 10 (Form AT293) – Alberta Loss Carry-Back Application (PDF, 276 KB) (July 2012)
• AT1 Schedule 12 (Form AT112) – Alberta Income/Loss Reconciliation (PDF, 326 KB) (March 2018)
• AT1 Schedule 13 (Form AT13) – Alberta Capital Cost Allowance (CCA) (PDF, 279 KB) (July 2012)
• AT1 Schedule 14 (Form AT14) – Alberta Cumulative Eligible Capital Deduction (PDF, 314 KB) (March 2018)
  • Schedule 14 Supplemental Worksheet – to be used for tax years that start before January 1, 2017 (PDF, 286 KB) (March 2018)
• AT1 Schedule 15 ( Form AT237) – Alberta Resource Related Deductions (PDF, 361 KB) (March 2014)
• AT1 Schedule 16 (Form AT238) – Alberta Scientific Research Expenditures (PDF, 275 KB) (July 2012)
• AT1 Schedule 17 (Form AT170) – Alberta Reserves (PDF, 288 KB) (March 2014)
• AT1 Schedule 18 (Form AT18) – Alberta Dispositions of Capital Property:
  • for taxation years ending on or after July 1, 2019 (PDF, 333 KB) (January 2019)
  • for taxation years ending on or before June 30, 2019 (PDF, 337 KB) (March 2014)
• AT1 Schedule 20 (Form AT20) – Alberta Charitable Donations & Gifts Deduction (PDF, 311 KB) (January 2015)
• AT1 Schedule 21 (Form AT173) – Alberta Calculation of Current Year Loss and Continuity of Losses (PDF, 333 KB) (March 2014)

Scientific Research and Experimental Development Tax Credit forms (SR&ED)

• See related documents:
  • Information circular SRED-1R2 – Alberta Scientific Research and Experimental Development (SR&ED) Tax Credit (February 2015)
  • Guide to Claiming the SR&ED Tax Credit (PDF, 890 KB) (April 2013)
• AT1 Schedule 9 (Form AT190) – SR&ED Tax Credit (PDF, 295 KB) (October 2012)
• AT1 Schedule 9 Supplemental (Form AT192) (PDF, 273 KB) (January 2013)
  • For taxation years ending on or before March 31, 2012. This form has been developed for calculating the Grind. Claimants are to use it with AT1 Schedule 9.
• AT4960 – Listing of SR&ED Projects Claimed in Alberta (PDF, 472 KB) (October 2009)

Election forms

• AT107 – Alberta Election on Disposition of Property by a Taxpayer to a Taxable Canadian Corporation (PDF, 165 KB) (August 2014)
• AT108 – Alberta Election on Disposition of Property by a Partnership to a Taxable Canadian Corporation (PDF, 170 KB) (August 2014)
• AT109 – Alberta Election on Disposition of Property by a Taxpayer to a Canadian Partnership (PDF, 157 KB) (August 2014)

Other forms

• AT97 – Notice of Objection (PDF, 138 KB) April 2014)
• AT184 – Waiver in Respect of Time Limit for Assessment, Reassessment or Determination (PDF, 254 KB) (July 2012)
• AT2156 – Notice of Revocation of Waiver (PDF, 255 KB) (July 2012)
• AT4930 – Alberta Consent Form (PDF, 270 KB) (March 2020)
  • See tip sheet: Representatives – How to Access TRACS (PDF, 268 KB) (April 2020)

Original Source: https://www.alberta.ca/corporate-income-tax.aspx