Since the 1940s, all incorporated businesses with a permanent establishment (for example, office, mine, farm, oil well) 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, innovation employment grant and other 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 (that is, 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, refer to Information Circular CT-1 – Overview of the Alberta Corporate Income Tax Program.
Innovation Employment Grant
As part of Alberta’s Recovery Plan, qualified corporations may claim the Innovation Employment Grant (IEG) beginning January 1, 2021. The IEG is equal to 8% of eligible expenditures with respect to scientific research and experimental development (SR&ED) carried out in Alberta after December 31, 2020.
Qualified corporations may also be eligible to claim an additional amount equal to 12% of eligible expenditures in excess of their base level of spending.
- Information circular IEG-1 – Alberta Innovation Employment Grant
- Guide to Claiming the Alberta Innovation Employment Grant (PDF, 5.2 MB)
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, 208 KB) – March 2021
Other tax credits
Together with Alberta Jobs, Economy and Trade Tax and Revenue Administration administers the Film and Television Tax Credit (FTTC). For more information on the FTTC, refer to Information Circular CT-1 – Overview of the Alberta Corporate Income Tax Program.
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.
For more information on who is not required to file, who is exempt from filing, and the definition of a permanent establishment, refer to Information Circular CT-2, Filing and Payment Requirements.
How to file
Returns are due within 6 months from the end of a corporation’s tax year end. An AT1 is considered filed on the date it is received by TRA.
For more information on the filing process and deadline, refer to Information Circular CT-2, Filing and Payment Requirements.
Using certified software, taxpayers or service providers can use net file to electronically submit an AT1, including an amended AT1. Net file provides the user with immediate receipt confirmation, faster processing and the convenience of filing from anywhere.
No access code or registration is required to net file an AT1.
Net file is available Monday to Saturday, 7 am to midnight MST, and on Sunday, 5:30 pm to midnight MST.
Net file eligibility
To net file an AT1, a corporation must have a valid Alberta corporate account number (CAN). The CAN is the same as the Corporate Access Number indicated on the Alberta Certificate of Incorporation.
For information about registering a corporation in Alberta, see Incorporate a business or organization.
Mandatory net filing – Corporations
Except as indicated below, a corporation whose gross revenue exceeds $1 million is required to net file its AT1.
However, the following types of corporations are not required to net file their AT1s:
- an insurance corporation
- a non-resident corporation
- a corporation that reports in functional currency
- a corporation that is exempt from taxation under section 35 of the Alberta Corporate Tax Act
Every corporation that fails to file an AT1 electronically as required is liable to a penalty of $1,000.
Mandatory net filing – Tax Preparers
Except as indicated below, a tax preparer who accepts consideration to prepare more than 10 AT1s is required to net file all AT1s.
However, a tax preparer is not required to net file the following:
- a type of AT1 for which the tax preparer has applied for in writing and received permission from TRA to file by another method
- an AT1 of an insurance corporation, non-resident corporation, or a corporation reporting in functional currency
Net file certified software
The AT1 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 and RSI formats 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.
- Complete the AT1 Alberta Corporate Income Tax Return and Schedules.
- See the listing of Software Certified for AT1 Net File and RSI formats for 2008 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 AT1. 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
In general, Alberta corporate income tax must be paid in equal monthly instalments on or before the last day of each month in the taxation year with any balance due by the end of the second month following the taxation year (the balance-due day). It is a corporation’s responsibility to calculate its required monthly tax instalment payments and any remaining balance due that must be paid by the balance-due day.
If a payment or balance-due day falls on a weekend or holiday, the due date is the next business day.
Daily compound interest is charged on all late or deficient payments of Alberta tax payable.
Exemptions specific to corporation type:
Canadian Controlled Private Corporations (CCPCs)
A CCPC is exempt from paying tax instalments throughout the taxation year and is allowed to defer its total payment of tax to the end of the third month following its taxation year. A CCPC is eligible for this exemption if it meets one of the following criteria:
- it claims the Alberta small business deduction and has taxable income of $500,000 or less in the current taxation year
- it claimed the Alberta small business deduction and had taxable income of $500,000 or less in the immediately preceding taxation year
- its Alberta corporate income tax payable for the current year or first instalment base is $2,000 or less
A corporation that is not a CCPC is exempt from paying tax instalments throughout the taxation year and is allowed to defer its total payment of tax to the end of the second month following its taxation year if its Alberta corporate tax for the year or its first instalment base is $2,000 or less.
A new corporation, other than one formed by amalgamation, is not required to pay instalments during its first taxation year and is allowed to defer its total payment of tax to the end of the second month following the taxation year.
For more information on tax instalments, including options for how to calculate tax instalments and exceptions for short taxation years and reorganizations, refer to Information Circular CT-2, Filing and Payment Requirements.
For more information on making payments, refer to Making payments to Tax and Revenue Administration.
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
- submit documents – see Corporate Income Tax – Submitting Documents in TRACS for more information
- file a Notice of Objection
For more details, instructional videos and to log in to your TRACS account, see TRACS information.
How to authorize a representative
Changes to the Alberta Consent form (AT4930)
An individual with proper authorization for the business may consent to the release of confidential information about account(s) with TRA to a specific representative – a firm and/or individual – also known as a third-party organization.
An individual with proper authorization for the business includes a(n):
- partner of a partnership
- corporate director
- trustee of an estate
- individual with delegated authority
If your representative is not enrolled as a Third-party organization with TRA, you must complete the Alberta Consent Form – Corporate Income Tax (AT4930) (PDF, 270 KB) and submit to TRA.
Step 1: Complete the Alberta Consent Form
- Review the consent form provided by your representative.
- Complete the certification section if you agree to the privileges requested in part 3.
- Send the completed Alberta Consent Form back to your representative.
Step 2: Representative uploads the Alberta Consent Form in TRACS
Step 3: Representative receives access
- TRA will review the consent form to ensure it is complete.
A firm or individual that represents one or more clients for corporate income tax may enrol with TRA to access client’s corporate income tax account information online using TRACS.
See Third-party organizations for more 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.
How to object
A notice of objection must be submitted within 90 days from the date shown on the notice of (re)assessment or notice of (re)determination of loss. If the objection has not been submitted within 90 days, you must request an extension of time to file the notice of objection. No objection may be filed after one year and 90 days from the date shown on the notice.
You must file a separate notice of objection for each tax year end or notice of (re)assessment even if the reasons or statement of facts is the same.
Step 1: Login to your TRACS account and select ‘File a Notice of Objection’ from ‘Account Actions’
- If you do not have access to your account in TRACS, complete the TRACS Enrolment Request.
- Visit the TRACS page for more information.
Step 2: Complete and submit the notice of objection
- Provide a detailed explanation and upload supporting documentation.
Step 3: Receive decision
- TRA will review your notice of objection(s) and all additional information provided. We may contact you for additional information.
- You will receive the written decision by secure email.
- If you do not agree with the decision, you may take further legal action to appeal the decision.
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-1R2 – Introduction to Tax and Revenue Administration – December 2021
- TRA-2 – TRA Fairness and Service Pledge – June 2023
Corporate income tax information circulars and guides
- CT-1R1 – Overview of the Alberta Corporate Income Tax Program – March 2023
- CT-2R10 – Corporate Income Tax Filing and Payment Requirements – August 2023
- CT-3R6 – Corporate Income Tax Assessments, Audits and Dispute Resolution – August 2023
- CT-4R8 – Insurance Premiums Tax – March 2023
- IEG-1R2 – Alberta Innovation Employment Grant – March 2023
- Guide to Claiming the Alberta Innovation Employment Grant (PDF, 5.2 MB) – April 2023
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-3R2 – Allocating Income to Permanent Establishments – September 2022
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. 62 – Application of Federal Budget 2021 Tax Incentives for Immediate Expensing and Capital Cost Allowance – May 31, 2021
- Vol. 5 No. 63 – Allocation of Immediate Expensing Limit Between Associated Corporations – June 13, 2023
Certified software for corporate income tax returns
AT1: Alberta Corporate Income Tax Return and Schedules
- AT1 – Alberta Corporate Income Tax Return for 2004 and Subsequent Taxation Years – September 2023
- Alberta Corporate Income Tax Filing Exemption checklist (PDF, 116 KB) – April 2023
- AT1 Schedule 1 (Form AT2) – Alberta Small Business Deduction – April 2023
- AT1 Schedule 2 (Form AT271) – Alberta Income Allocation Factor (PDF, 219 KB) – August 2023
- 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, 195 KB) – August 2023
- AT1 Schedule 10 (Form AT293) – Alberta Loss Carry-Back Application (PDF, 204 KB) – June 2022
- AT1 Schedule 12 (Form AT112) – Alberta Income/Loss Reconciliation (PDF, 229 KB) – August 2023
- AT1 Schedule 13 (Form AT13) – Alberta Capital Cost Allowance (CCA) (PDF, 245 KB) – April 2023
- 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, 197 KB) – August 2023
- 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, 217 KB) – August 2023
- 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, 238 KB) – August 2023
- AT1 Schedule 29 (Form AT29) – Alberta Innovation Employment Grant
- see below for forms and documents
Innovation Employment Grant
- See related documents:
- Information circular IEG-1R2 – Alberta Innovation Employment Grant – March 2023
- Guide to Claiming the Alberta Innovation Employment Grant (PDF, 5.2 MB) – April 2023
- AT1 Schedule 29 (Form AT29) – Alberta Innovation Employment Grant (PDF, 238 KB) – May 2021
- AT4970 – List of Innovation Employment Grant Projects Carried Out in Alberta (PDF, 111 KB) – March 2023
- AT107 – Alberta Election on Disposition of Property by a Taxpayer to a Taxable Canadian Corporation – August 2014
- AT108 – Alberta Election on Disposition of Property by a Partnership to a Taxable Canadian Corporation – August 2014
- AT109 – Alberta Election on Disposition of Property by a Taxpayer to a Canadian Partnership – August 2014
- AT4930 – Alberta Consent Form (PDF, 270 KB) – June 2023
- AT97 – Notice of Objection – November 2020
- AT4764 – Request for a Waiver of Penalties and Interest (PDF, 855 KB) – December 2022
- 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
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