Corporate income tax

Important notices

Alberta wildfires

Alberta’s government recognizes the extraordinary challenges faced by businesses operating in areas impacted by recent wildfires.

For business operators affected by a wildfire and not able to file returns or make payments as required, read Special Notice: Vol. 8 No. 6 Alberta Wildfires – Waivers of Penalties and Interest – July 31, 2024.

To request a waiver for penalties and interest, read File a waiver request.

Mandatory electronic filing for returns by corporations

The Alberta Corporate Tax Act (ACTA) requires prescribed corporations to file the Alberta Corporate Income Tax Return − AT1 (AT1 Return) electronically, which must be done using the net file service. The definition of ‘prescribed corporation’ in the Alberta Corporate Tax Regulation was recently amended to remove the exception for corporations whose gross revenue exceeds $1 million.

Accordingly, for AT1s in respect of taxation years that begin after December 31, 2024, all corporations will be required to file electronically using net file except:

• insurance corporations
• non-resident corporations
• corporations reporting in functional currency
• corporations that are exempt from taxation under section 35 of the ACTA.

For more information, see:

• Special Notice Vol. 5 No. 67 Mandatory Electronic Filing of AT1 Returns

Update a mailing address

To prevent mailings to incorrect addresses for Corporate Income Tax, TRA will automatically update a corporation’s mailing address to match the Canada Revenue Agency’s (CRA) records if the address has not been updated with TRA in the last 90 days. TRA may suppress mailing of certain documents until the corporation’s address has been updated.

Address changes can be made:

• online in TRACS
• by contacting TRA

A corporation’s address will not be updated using the AT1 – Alberta Corporate Income Tax Return, and only one address will be retained on file as the mailing address. Alternate addresses are not accepted.

Overview

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

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.

Alberta Corporate Account Number (CAN)

A corporation with a permanent establishment in Alberta at any time during the taxation year is required to file an Alberta Corporate Income Tax Return (AT1). Both Alberta-based businesses and those formed in another province or country must be incorporated within Alberta and have a CAN. The CAN is the same as the Corporate Access Number indicated on the Alberta Certificate of Incorporation.

How to get a Corporate Account Number

To incorporate your Alberta-based business, refer to the incorporate an Alberta corporation page.

If your corporation was formed in another province or country, it must be registered to do business in Alberta. Refer to the Register an out-of-province corporation page for additional details.

For additional information on incorporating a business or organization within Alberta, refer to the Incorporate a business or organization page.

How to file

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

Net file

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

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

A tax preparer is a person or partnership that accepts payment to prepare more than 5 AT1s in a calendar year. This excludes an employee who prepares AT1s as part of their employment duties. Except as indicated below, a tax preparer is required to net file all AT1s, including AT1s in respect of corporations whose gross revenue is $1 million or less.

However, a tax preparer is not required to net file the following:

• an AT1 that was prepared for no payment in respect of a corporation whose gross revenue is $1 million or less
• up to 5 AT1s that were prepared for payment in respect of corporations each of whose gross revenue is $1 million or less
• an AT1 of an insurance corporation, a non-resident corporation, or corporation reporting in functional currency

Every tax preparer who fails to net file an AT1 as required is liable to a penalty of $100 for each such failure.

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.

Paper

• 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

Other corporations

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.

• Related: Tax, levy and 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
• submit documents – see Corporate Income Tax – Submitting Documents in TRACS for more information
• file a Notice of Objection
• request for waiver of penalties and interest

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

Authorize a representative

Changes to the Alberta Consent form (AT4930)

Representatives need to request TRACS access using the ‘Manage Clients’ function in their third-party organization account. For more information, see Third-party organizations.

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):

• owner
• 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) 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.

Third-party organizations

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.

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. Log in to your TRACS account 

• 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.

File a waiver request

TRA recognizes there may be circumstances beyond a person’s control that prevent the person from complying with filing and payment obligations imposed under the Alberta Corporate Tax Act.

In such circumstances, TRA may exercise its discretion to waive or cancel all or any portion of penalties or interest that have been assessed.

Step 1. Log in to your TRACS account

• Select ‘Waiver request – Penalties & Interest’ from ‘Account Actions’.
• If you do not have access to your account in TRACS, complete the TRACS Enrolment Request.

Step 2. Complete and submit the waiver request

• Complete all required fields.

Step 3. Receive decision

• TRA will review your waiver request. We may contact you for additional information.
• You will receive the written decision by secure email.

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Contact

Connect with Tax and Revenue Administration:

Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)
Phone: 780-427-3044
Toll free: 310-0000 before the phone number (in Alberta)
Email: [email protected]