ALBERTA CORPORATE TAX ACT (RSA 2000 cA-15)

RSA 2000 cA-15

Alberta — Consolidated Statutes

© Published by Alberta King’s Printer Alberta King’s Printer Suite 700, Park Plaza 10611 - 98 Avenue Edmonton, AB T5K 2P7 Phone: 780-427-4952 E-mail: kings-printer@gov.ab.ca Shop on-line at kings-printer.alberta.ca Province of Alberta Office Consolidation Revised Statutes of Alberta 2000

Chapter A-15 Current as of March 26, 2026 ALBERTA CORPORATE TAX ACT

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Note All persons making use of this consolidation are reminded that it has no legislative sanction, that amendments have been embodied for convenience of reference only. The official Statutes and Regulations should be consulted for all purposes of interpreting and applying the law. Amendments Not in Force This consolidation incorporates only those amendments in force on the consolidation date shown on the cover. It does not include the following amendments: 2020 c35 s3 amends s86(1)(d)(iv).

Regulations The following is a list of the regulations made under the Alberta Corporate Tax Act that are filed as Alberta Regulations under the Regulations Act Alta. Reg. Amendments Alberta Corporate Tax Act Alberta Corporate Tax .................................... 119/2008 ......... 280/2009, 37/2010, 200/2010, 33/2011, 209/2014, 27/2015, 218/2017, 58/2021, 53/2024, 183/2024 Alberta Corporate Tax (Ministerial) ............... 183/2006 ......... 153/2016

1 ALBERTA CORPORATE TAX ACT

Chapter A-15 (NOTE: The taxation years affected by a provision of this Act that is added, repealed or amended are included in the original amending Acts, which are referred to at the end of each section. Those Acts should be consulted to determine the effect of the provision for a particular taxation year.) Table of Contents 1

Interpretation 2 Application of federal Act 3 Income Tax Convention or Treaty 4 Application of federal Act 4.01 Functional currency reporting 4.02 Functional currency election 4 . 1 Application of Parts 9 and 10 4.2 Extension of time limits and periods (COVID-19)

Part 1 Liability for Income Tax 5 Liability for income tax

Part 2 Computation of Income 6 Income for taxation year 6.1 Cost amount of property 6.2 Rules for depreciable property 7 Income or loss Division 1 Income or Loss from a Business or Property 8 Income or loss 8 . 3 Application of federal Act 8.4 Federal transfer pricing rules

RSA 2000

Chapter A-15 ALBERTA CORPORATE TAX ACT 2 Division 2 Taxable Capital Gains and Allowable Capital Losses 9 Capital gains and capital losses Division 3 Other Sources of Income 1 0 Other sources of income Division 4 Deductions in Computing Income 1 1 Deductions Division 5 Rules Relating to Computation of Income 1 2 Computation of income rules 12.1 Reimbursement of Crown charges Division 6 Corporations and Corporate Shareholders 1 4 Computation of income of corporations 14.1 Transfer of proper ty to a corporation 14.2 Transfer of property from a partnership 14.3 Filing of election form 1 5 Shareholders of non-resident corporations Division 7 Partnerships 1 6 Partnership 16.1 Transfer of property to a partnership 16.2 Filing of election form Division 8 Trusts 1 7 Trusts Division 9 Non-Residents 17.1 Taxable income of non-resident corporation

Part 3 Computation of Taxable Income 1 8 Taxable income of corporation

RSA 2000

Chapter A-15 ALBERTA CORPORATE TAX ACT 3

Part 4 Computation of Amount Taxable in Alberta Division 1 Alberta Allocation Factor 1 9 Alberta allocation factor Division 2 Amount Taxable in Alberta 19.1 Amount taxable in Alberta Division 3 Royalty Tax Deduction 20 Royalty tax deduction 20.1 Special definition for s20

Part 5 Computation of Income Tax Payable 2 1 Tax payable by corporation Division 1 Small Business Deduction 2 2 Small business deduction 22.01 Over-integration tax payable 22.2 Manufacturing and processing profits deduction Division 2 Foreign Investment Income 2 3 Foreign investment income Division 4 Alberta Rental Investment Tax Credit 2 5 Rental investment tax credit Division 5 Investor Tax Credits 25.01 Investor tax credits 25.02 Capital investment tax credit 25.03 Order of deduction Division 6 Alberta Agri-processing Investment Tax Credit 25.04 Alberta agri-processi ng investment tax credit

RSA 2000

Chapter A-15 ALBERTA CORPORATE TAX ACT 4 Division 7 Data Centre Levy Tax Credit 25.05 Definition 25.06 Data centre levy tax credit 25.07 Data centre levy tax credit re partnership

Part 6 Refundable Tax Credits Division 1 Royalty Tax Credit 2 6

Interpretation 26.1 Royalty tax credit 26.4 Royalty tax credit instalment Division 2 Extended Alberta Rental Investment Tax Credit 26.5 Rental investment tax credit Division 3 Scientific Research and Experimental Development Tax Credit 26.6

Interpretation 26.7 Tax credit deduction 26.71 Recapture of Alberta SR & ED credit 26.8 Maximum expenditure limit 26.9 R e c a p t u r e 26.91 General provisions Division 4 Alberta QET Tax Credit 26.92 Alberta QET tax credit Division 5 Interactive Digital Media Tax Credit 26.93 Interactive Digital Media Tax Credit Division 6 Film and Television Tax Credit 26.94 Film and Television Tax Credit Division 7 Innovation Employment Grant 26.95

Interpretation

RSA 2000

Chapter A-15 ALBERTA CORPORATE TAX ACT 5 26.96 Grant calculation and deduction 26.97 Base amount 26.971 Allowed amount 26.98 Maximum expenditure limit 26.99 R e c a p t u r e 26.991 General provisions

Part 7 Special Rules Applicable in Certain Circumstances 2 7 Bankrupt corporations 27.1 Changes in residence 2 8 Investment corporations 2 9 Mortgage investment corporations 3 0 Mutual fund corporations 30.01 Amounts designated by mutual fund trust 30.1 Mutual funds - qualifying exchange 30.2 Communal organizations 3 1 Patronage 31.1 Agricultural cooperatives 3 2 Credit unions 3 3 Deposit insurance corporations 3 4 Insurance corporations 34.01 Financial institutions 34.011 Conversion of foreign ba nk affiliate to branch 34.02 Cost of tax shelter investments 34.03 Expenditure limitations 34.04 Limit for contingent amount 34.1 Interest 3 5 Exemptions

Part 8 General Division 1 Returns 3 6 Return to be filed 36.1 Electronic filing of return 36.2 Duty to file new information 3 7 Penalty for failure to file return 37.1 Penalty for false statement 37.2 Electronic suppression of sales device 37.3 Failure by corporation to file r eturn by way of electronic filing 37.4 Failure by tax preparer to file return by way of electronic filing

RSA 2000

Chapter A-15 ALBERTA CORPORATE TAX ACT 6 3 8 Payment on account 38.1 Excess refund 3 9 Interest 39.1 Repayment of excess tax 39.2 Offset of refund and arrears interest 39.3 Period where interest not payable Division 2 Assessment 4 1 Assessment of tax 4 2 Notice of assessment 4 3 Assessment, reassessment, etc. 43.01 Deeming of federal amounts 43.02 Assessments 43.1 Federal-based s72.1 assessments 4 4 Reassessment re loss carry-backs 44.1 Reassessment re: election on proceeds 44.2 Reassessment re: excessive c apital cost allowance 4 5 Assessment deemed v alid and binding 4 6 Payment of balance 4 7 Overpayment of tax 47.1 Small amounts owing 4 8 Notice of objection to assessment 48.1 Extension of time by Provincial Minister 48.2 Extension of time by court 4 9 Legal representatives 49.1 Liability in respect of transfe rs by insolvent corporations Division 3 Appeals 5 0 Appeal 50.1 Extension of time to appeal 5 1 Reply to notice of appeal 5 2 Powers of court on appeal 5 3 Practice and procedure 5 4 Variation of assessment Division 4 Administration and Enforcement 5 5 Provincial Minister administers Act 55.01 Collection agreement 55.1 Waiver or cancellation of penalties or interest 5 6 Regulations

RSA 2000

Chapter A-15 ALBERTA CORPORATE TAX ACT 7 5 7 Taxes, etc. debt due to Crown 57.1 Limitations Act 5 8 Certification o f amount payable 6 0 Powers of Provincial Minister 60.1 Restrictions on collection 60.2 Amounts in jeopardy 6 1 Records and books of account 6 2

Definitions 6 3 Inspection, audit and examination of books, etc. 6 4 Notice to provide information, etc. 6 5 Warrant to search and seize 65.1 Court order to pro vide information 65.2 Period for assessment 6 6 Provincial Minister may authorize inquiry 6 7 Copies of seized documents 6 8 Hindrance an offence 6 9 Representation by counsel 7 0 Application of federal Act 7 1 Information return 7 2 Return, etc. to be signed Division 4.1 Tax Avoidance 72.1 General anti-avoidance rule 72.11 Limitation 72.12 Tax benefits disallowed Division 5 Offences and Penalties 73.01 Third party civil penalties 73.1 Penalty for late or deficient instalments 7 4 Evasion of tax by corporation 7 5 Evasion of tax 7 6 Offences 7 7 Communication o f information 77.1 Communication of information ordered by judge 7 9 General offence and penalty 8 0 Liability of officers of corporation Division 6 Procedure and Evidence 8 1 Procedure re informa tion and complaint 8 2 Procedures

RSA 2000

Chapter A-15 ALBERTA CORPORATE TAX ACT 8 8 3 Documents deemed signed 8 4 Notices of assessments and forms Division 7 Transitional 8 5 Transitional

Part 9 Insurance Premiums Tax 8 6

Definitions 8 7 Tax payable 8 8 Exemptions 8 9 Return 9 0 Penalty 9 1 Interest 9 2 Application of other Parts 92.1 Regulations

Part 9.1 Data Centre Levy 92.2

Interpretation 92.3 Data centre levy 92.4 Agreement 92.5 Returns 92.6 Amended returns 92.7 Penalty 92.8 Interest 92.9 Application of other Parts 92.91 Regulations 92.92 Deficiency regulations

Part 10 Financial Institutions Capital Tax 9 3

Interpretation 9 4 Liability for tax 9 5 Calculation of adjusted taxable capital 9 6 Calculation of taxable ca pital employed in Canada 9 7 Tax payable by reside nt financial institution 97.1 Tax payable by non-reside nt financial institution 101 Time for payment 102 Filing return 103 Penalty for failure to file return 104 Interest

RSA 2000

Chapter A-15 ALBERTA CORPORATE TAX ACT 9 105 Application of other Parts 105.1 Coming into force 105.2 Application of Part

Part 11 Royalty Credit and Tax Refunds for Individuals Division 1 Alberta Royalty Credit 106

Interpretation 107 Application 108 Entitlement to royalty credit 110 Time for application 111 Time limit 112 Royalty credit instalment 113 Repayment of instalment 114 Penalty 115 Interest Division 2 Resource Allowance Tax Refund 115.1

Definitions 115.2 Additional resource allowance deduction 115.3 Resource allowance refund calculation Division 3 Refund of Income Tax on Royalty Credit 115.4 Refund of income tax on royalty credit Division 4 Assessment 115.5 Application for refunds 106

Interpretation 107 Application 108 Entitlement to royalty credit 110 Time for application 111 Time limit 112 Royalty credit instalment 113 Repayment of instalment 114 Penalty 115 Interest 116 Repayment 117 Repayment of interest 118 Assessment and determination on application

RSA 2000

Section 1

Chapter A-15 10 ALBERTA CORPORATE TAX ACT 119 Assessment, reassessment, etc. 120 Refund of net credit 121 Application of other Parts HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows:

Interpretation 1(1) In this Act and in the application of the provisions of the federal Act and the regulations made under that Act that are by this Act made applicable, each of the provisions of

Part XVII of the federal Act apply for the purposes of this Act, except as provided in this Act or the regulations.

(2) In this Act and in the application of the provisions of the federal Act and the regulations made under that Act that are by this Act made applicable for the purposes of this Act, (a) “Alberta allocation factor ” means the Alberta allocation factor determined in accordance with Division 1 of

Part 4; (a.1) “Alberta QET tax credit” m eans the tax credit calculated under

section 26.92; (b) “amount taxable in Albert a” means the amount taxable determined in accordance with

Part 4; (b.1) “balance-due day” of a corporation for a taxation year means the day on or before which the corporation is required under

section 38 to pay the remainder of its tax payable under

Part 5 for the year or would be so required if such a remainder were payable; (c) “court” means the C ourt of King’s Bench; (d) “federal Act” means the Income Tax Act (Canada) and includes any rules of application that are contained in any Act of the Parliament of Canada that amends the Income Tax Act (Canada); (d.1) “federal assessment action” means any of the following actions taken by the Minister of National Revenue under the federal Act: (

i) an assessment, reassessment or additional assessment of tax, interest or penalties;

RSA 2000

Section 1

Chapter A-15 ALBERTA CORPORATE TAX ACT 11 (ii) a determination or redetermination of a loss or an amount; (iii) a confirmation of an a ssessment, reassessment or additional assessment of tax, interest or penalties or of a determination or redetermination of a loss or an amount; (e) “federal regulation” means a regulation, as amended from time to time, made under the federal Act; (e.01) “fiscal period” means the period for which the person’s or partnership’s accounts in respect of the business or property are made up for purposes of assessment under the federal Act; (e.1) “jurisdiction” means a pr ovince of Canada or a country or political subdivision of a country; (e.2) repealed RSA 2000 cA-30 s88; (e.3) “large corporation”, with respect to a particular taxation year, means a corporation that is a large corporation in that taxation year within the meaning assigned by subsection 225.1(8) of the federal Act; (f) “permanent establishment” m eans a fixed place of business of the corporation, including an office, a branch, a mine, an oil well, a farm, a timber land, a factory, a workshop or a warehouse, and (

i) if the corporation does not have any fixed place of business it means the principal place in which the corporation’s business is conducted, (ii) if a corporation carries on business through an employee or agent, established in a particular place, who has general authority to contract for the employee’s or agent’s employer or principal or who has a stock of merchandise owned by the employee’s or agent’s employer or principal from which the employee or agent regularly fills orders that the employee or agent receives, the corporation is deemed to have a permanent establishment in that place, (iii) an insurance corporation is deemed to have a permanent establishment in each province and country in which the corporation is registered or licensed to do business,

RSA 2000

Section 1

Chapter A-15 12 ALBERTA CORPORATE TAX ACT (iv) if a corporation, otherwise having a permanent establishment in Canada, owns land in a province, that land is deemed to be a permanent establishment, (

v) if a corporation uses subst antial machinery or equipment in a particular place at any time in a taxation year it is deemed to have a permanent establishment in that place, (vi) the fact that a corporation has business dealings through a commission agent, broker or other independent agent or maintains an office solely for the purchase of merchandise shall not of itself be held to mean that the corporation has a permanent establishment, (vii) the fact that a corporation has a subsidiary controlled corporation in a place or a subsidiary controlled corporation engaged in trade or business in a place shall not of itself be held to mean that the corporation is operating a permanent establishment in that place, and (viii) if a corporation resident in Canada does not otherwise have a permanent establishment in Canada, the corporation is deemed to have a permanent establishment in the place where it has its registered office or in a place designated in its articles, charter or by-laws as its office or registered office; (g) “prescribed” means (

i) with respect to a form, the information to be given on a form or the manner of filing a form, authorized by the Provincial Minister, (i.1) with respect to the ma nner of making or filing an election, authorized by the Provincial Minister, or (ii) in any other case, prescribed by regulation; (g.01) “Provincial Minister” me ans the Minister determined under

section 16 of the Government Organization Act as the Minister responsible for this Act; (g.011) repealed 2015 c21 Sched. 2 s1(2); (g.02) “Quebec Act” means the Taxation Act (Quebec) and includes any rules of application that are contained in any Act of the Parliament of Quebec that amends the Taxation Act (Quebec);

RSA 2000

Section 1

Chapter A-15 ALBERTA CORPORATE TAX ACT 13 (g.1) “refundable tax credit” means a tax credit to which a corporation is entitled under

Part 6; (g.2) “royalty tax credit” means a tax credit to which a corporation is entitled under

section 26.1; (g.3) repealed 2001 c1 s2; (h) “royalty tax deduction” means the royalty tax deduction determined in accordance with

section 20(2); (h.1) “specified future tax co nsequence” for a taxation year means specified future tax consequence as defined in subsection 248(1) of the federal Act, except that the following replaces paragraph (

a) of that definition: (

a) the consequence of the deduction or exclusion of an amount referred to in

section 39(3)(

a) of the Alberta Corporate Tax Act, and; (i) “tax payable” with respect t o a corporation, means the tax payable by that corporation as fixed by assessment or reassessment and subject to variation or objection or on appeal; (j) “taxable income” means the income of a corporation calculated in accordance with

Part 3; (i.1) “tax shelter” means a tax shelter as defined in

section 237.1(1) of the federal Act; (k) “taxable income earned in Canada” means a corporation’s taxable income earned in Canada determined in accordance with

section 17.1, except that in no case may a corporation’s taxable income earned in Canada be less than nil.

(2.1) For the purposes of this Act, a reference in this Act to the Minister of National Revenue is to be read as including the Commissioner of Revenue under the Canada Revenue Agency Act (Canada).

(3) If at any time an amount payable to a corporation by the Provincial Minister under this Act is applied by the Provincial Minister to reduce a liability of the corporation under this Act, the amount is an amount paid at that time on account of the liability of the corporation.

(4) Interest at a prescribed rate under this Act shall be computed and compounded daily.

RSA 2000

Section 2

Chapter A-15 14 ALBERTA CORPORATE TAX ACT

(5) If interest is payable under a particular

section and is not paid or applied on the day it would, but for this subsection, have ceased to be computed, interest at a prescribed rate under this Act shall be computed and compounded daily on the interest that is not paid or applied from that day to the day on which it is paid or applied.

(6) Repealed 2002 c28 s2. RSA 2000 cA-15 s1;RSA 2000 cA-30 s88;2001 c1 s2; 2002 c28 ss2,34;2003 c34 s2;2009 c15 s2;2012 c4 s2; 2013 c11 s1;2014 c6 s1(2);2015 c21 Sched. 2 s1(2); AR 217/2022 Application of federal Act 2(1) When a

section of the federal Act or a regulation made under the federal Act has, by this Act, been made applicable for the purposes of this Act and reference is made in that

section to another provision of the federal Act and this Act provides that the other provision is inapplicable for the purposes of this Act, then that

section shall be read as if the reference to the other provision had been struck out.

(2) When a

section of the federal Act or a regulation made under the federal Act has, by this Act, been made applicable for the purposes of this Act and reference is made in that

section to another provision of the federal Act and that other provision does not apply for the purposes of this Act because a provision of this Act applies instead of it, then the reference to the other provision is deemed to be a reference to the provision of this Act that applies instead of it.

(3) When a

section of the federal Act or a regulation made under the federal Act has, by this Act, been made applicable for the purposes of this Act and reference is made in that

section to another provision of the federal Act and that other provision applies in a different manner for the purposes of the federal Act than it does for the purposes of this Act, then the reference is deemed to be a reference to the other provision as it applies for the purposes of this Act.

(3.1) If a

section of the federal Act or a regulation made under the federal Act that is inapplicable for the purposes of this Act defines a term that is used in a provision of the federal Act or a regulation under the federal Act that is applicable for the purposes of this Act, that term is deemed to have the same meaning for the purposes of this Act as it does for the purposes of the federal Act or the regulation under the federal Act, unless otherwise provided in this Act.

(4) Repealed 1981 c8 s3.

RSA 2000

Section 2

Chapter A-15 ALBERTA CORPORATE TAX ACT 15

(5) In the application of a

section of the federal Act that, by this Act, is made applicable for the purposes of this Act, a reference to (

a) a return of income required to be filed under

section 150 of that Act is deemed to be a reference to a return required to be filed under

section 36 of this Act, and (

b) an assessment required to be made under

section 152 of tha t Act is deemed to be a reference to an assessment required to be made under

section 41 of this Act.

(5.1) If a provision of the federal Act or a regulation made under the federal Act that is made applicable by this Act refers to giving a notice or making an application to the Minister of National Revenue, the notice or application may be given or made to the Provincial Minister in respect of a matter under this Act.

(5.2) If in a provision of the federal Act or a regulation made under the federal Act that is made applicable by this Act something may be done by the Minister of National Revenue, it may be done by the Provincial Minister.

(6) Subject to sections 14.1, 14.2, 14.3, 16.1, 16.2 and 34.011(2), an election or designation by a corporation that may be made under the federal Act may be filed with the Provincial Minister and if so filed the rules respecting that election or designation in the federal Act apply but, in the event that the election or designation is not filed with the Provincial Minister, the Provincial Minister shall accept an election or designation made under the federal Act and the provisions of the federal Act imposing penalties for late filing of elections or designations are not applicable for the purposes of this Act.

(6.1) Except as otherwise provided in this Act, where (

a) a

section or part of a sectio n of the federal Act has, by this Act, been made applicable for the purposes of this Act, (

b) a coming into force provision in respect of that

section o r that part of a

section of the federal Act provides for an election as to how or whether that

section or that part of a

section applies to a taxpayer in any particular taxation year, and (

c) a taxpayer that is a cor poration has made an election, that

section or that part of a

section of the federal Act shall apply for the purposes of this Act in the same manner as elected by the

RSA 2000

Section 3

Chapter A-15 16 ALBERTA CORPORATE TAX ACT corporation pursuant to the coming into force provision in respect of that

section or that part of a section.

(7) Repealed 1992 c2 s3.

(8) Repealed 2015 c21 Sched. 2 s1(4).

(9) Repealed 1990 c4 s4. (10) Subsections 248(7) and (11) of the federal Act do not apply for the purposes of this Act.

RSA 2000 cA-15 s2;2001 c1 s3;2002 c28 ss3,34;2014 c6 s1(3); 2015 c21 Sched. 2 s1(4);2017 c15 s1(2) Income Tax Convention or Treaty 3 If Canada has entered into an Income Tax Convention or Treaty with another jurisdiction and that Convention or Treaty is inconsistent with the federal Act and if by reason of any other Act of the Parliament of Canada that Convention or Treaty prevails to the extent of that inconsistency, that Convention or Treaty is, to the extent of the inconsistency, deemed to apply for the purposes of this Act in the same manner as it applies for the purposes of the federal Act.

RSA 1980 cA-17 s3 Application of federal Act 4 The sections of the federal Act and the regulations made under it that are by this Act made applicable for the purposes of this Act, are, unless otherwise provided in this Act, deemed to apply as amended or re-enacted from time to time and those amendments or re-enactments shall apply for the purposes of this Act in the same manner as they apply for the purposes of the federal Act. RSA 1980 cA-17 s4 Functional currency reporting 4.01 In determining the Canadian tax results, as defined in

section 261 of the federal Act as it applies for the purposes of this Act, of a corporation for a particular taxation year, (

a) subject to

section 4.02, Canadian currency is to be used, and (

b) subject to

section 4.02 and subsections 20(14.2) and 79(7) and paragraphs 80(2)(

k) and 142.7(8)(

b) of the federal Act as they apply for the purposes of this Act, if a particular amount that is relevant in computing those Canadian tax results is expressed in a currency other than Canadian currency, the particular amount is to be converted to an amount expressed in Canadian currency using the relevant spot rate for the day on which the particular amount arose. 2009 c15 s3;2010 c2 s2;2017 c15 s1(3)

RSA 2000

Section 4.02

Chapter A-15 ALBERTA CORPORATE TAX ACT 17 Functional currency election 4.02(1) A corporation that (

a) makes an election or is deem ed to have made an election in accordance with subsection 261(3) of the federal Act for the purposes of the federal Act is deemed to have made the same election for the purposes of this Act, or (

b) revokes an election in accordance with subsection 261(4) o f the federal Act for the purposes of the federal Act is deemed to have made the same revocation of that election for the purposes of this Act.

(2) Amounts required to be paid pursuant to

section 38(1)(

a) must be determined with respect to tax payable in Canadian currency.

(3) Section 261 of the federal Act applies for the purposes of this Act, except that (

a) all amounts payable by a corporation under this Act in respect of a taxation year must be paid in Canadian currency, (

b) if a particular amount that is determined in the corporati on’s elected functional currency, other than any Alberta SR&ED tax credit, interactive digital media tax credit, film and television tax credit or innovation employment grant to which the corporation is entitled, is deemed to be paid at any time on account of an amount payable by the corporation under this Act for the particular taxation year, the particular amount is to be converted to Canadian currency using the relevant spot rate for the day that includes that time, (

c) the corporation’s tax payable for the year must be convert ed to Canadian currency in accordance with the regulations, (d) subsections 261(2), (11), ( 15) and (18) of the federal Act do not apply, and (

e) the references to subsection (18) in subsections 261(19) a nd (22) of the federal Act as they apply for the purposes of this Act shall be read as references to subsection (5) of this section.

(4) For the purposes of determining the amount that may be deducted in respect of a particular amount that arises in a taxation year (referred to in this subsection as the “later year”) of a corporation under

section 111 or subsection 126(2), 127(5),

RSA 2000

Section 4.02

Chapter A-15 18 ALBERTA CORPORATE TAX ACT 181.1(4) or 190.1(3) of the federal Act as it applies for the purposes of this Act in computing the corporation’s tax payable for a taxation year (referred to in this subsection as the “current year”) that ended before the later year, (

a) if the later year is a func tional currency year of the taxpayer and the current year is a Canadian currency year of the taxpayer, (

i) amounts, expressed in functional currency, available to be deducted in the current year are to be converted to Canadian currency using the relevant spot rate for the last day of the corporation’s last Canadian currency year, and (ii) amounts so deducted are to be converted back to functional currency at the same rate for purposes of determining amounts available to be deducted in any other taxation year, (

b) if the later year is a reversionary year of the corporatio n and the current year is a functional currency year of the corporation, (

i) amounts, expressed in Canadian currency, available to be deducted in the current year are to be converted to functional currency at the average exchange rate for the current year, determined in accordance with the regulations, and (ii) amounts so deducted are to be converted back to Canadian currency at the same rate, (

c) if the later year is a reversionary year of the corporatio n and the current year is a Canadian currency year of the corporation, for the purposes of determining amounts available to be deducted in the current year, amounts deducted in a functional currency year ending after the current year and before the later year are to be converted to Canadian currency at the average exchange rate for that functional currency year determined in accordance with the regulations, and (

d) in any other case, this subsection does not apply.

(5) The Canadian tax results of a corporation for any one or more taxation years shall be determined using a particular currency if

RSA 2000

Section 4.02

Chapter A-15 ALBERTA CORPORATE TAX ACT 19 (

a) at any time (referred to in this subsection as the “transfer time”) one or more properties are directly or indirectly transferred (

i) by the corporation to another corporation (referred to in this subsection as the “transferor” and the “transferee”, respectively), or (ii) by another corporation to the corporation (referred to in this subsection as the “transferor” and the “transferee”, respectively), (

b) the transferor and the tran sferee are related at the transfer time or become related in the course of a series of transactions or events that includes the transfer, (

c) the transfer time (

i) is, or would in the absence of subsections 261(16) and (17) of the federal Act as they apply for the purposes of this Act be, in a functional currency year of the transferor and the transferor and the transferee have, or would in the absence of those subsections have, different tax reporting currencies at the transfer time, or (ii) is, or would in the absence of those subsections be, in a reversionary year of the transferor and is not in a reversionary year of the transferee, (

d) it can reasonably be cons idered that one of the main purposes of the transfer or of any portion of a series of transactions or events that includes the transfer is to change, or to enable the changing of, the currency in which the Canadian tax results in respect of the property, or property substituted for it, for a taxation year would otherwise be determined, and (

e) the Minister of National Revenue directs that those Canadian tax results be determined in the particular currency.

(6) For the purposes of determining a corporation’s Canadian tax results in a taxation year that is a functional currency year of the corporation, the following amounts shall be converted to the functional currency at the average exchange rate for the year determined in accordance with the regulations: (

a) the corporation’s business limit for the year; (

b) the corporation’s maximum expenditure limit for the year;

RSA 2000

Section 4.1

Chapter A-15 20 ALBERTA CORPORATE TAX ACT (b.1) the amount of any API tax credit as defined in

section 2 5.04 that is deducted by the corporation under that

section in the taxation year; (

c) repealed 2018 c13 s1; (

d) the amount of any Alberta SR&ED tax credit as defined in

section 26.6 that is paid to the corporation in the taxation year; (

e) the amount of any interactive digital media tax credit tha t is paid to the corporation under

section 26.93 in the taxation year; (

f) the amount of any film and television tax credit that is paid to the corporation under

section 26.94 in the taxation year; (

g) the amount of any innovation employment grant that is paid to the corporation under

section 26.96 in the taxation year. 2010 c2 s2;2012 c4 s3;2016 c17 s2;2018 cI-3.1 s21;2018 c13 s1; 2019 cF-11.3 s21;2020 c40 s1;2023 c3 s1 Application of Parts 9 and 10 4.1(1) Subject to subsection (2), Parts 9 and 10 do not apply for the purposes of Parts 1 to 8.

(2) A liability of a corporation that may be reduced by the application of an amount to the liability by the Provincial Minister under

section 26.4 or 47 includes a liability under

Part 9 or 10. RSA 2000 cA-15 s4.1;2002 c28 s34 Extension of time limits and periods (COVID-19) 4.2(1) Notwithstanding any other provision of this Act or the regulations, if (

a) by or under the Time Limits and Other Periods Act (COVID-19) (Canada) (

i) a time limit set out in the federal Act or the federal regulations is suspended or extended, or (ii) a period set out in the federal Act or the federal regulations is extended, a n d (

b) this Act sets out a time lim it or period that is, in the opinion of the Provincial Minister, similar or related to the time limit or period referred to in clause (a),

RSA 2000

Section 5

Chapter A-15 ALBERTA CORPORATE TAX ACT 21 the Provincial Minister may suspend or extend the similar or related time limit or period for the purposes of this Act.

(2) If, under subsection (1), a time limit set out in this Act is suspended or extended or a period set out in this Act is extended, then during the period that the suspension or extension is in effect, every reference to that time limit or period in this Act is to be read as a reference to the time limit or period as it is suspended or extended.

(3) The instrument by which the Provincial Minister suspends or extends a time limit set out in this Act or extends a period set out in this Act, if it so provides, may be made retroactive to a day not earlier than March 13, 2020. 2020 c40 s1

Part 1 Liability for Income Tax Liability for income tax 5(1) A corporation that has a permanent establishment in Alberta at any time in a taxation year shall pay an income tax as required by

Part 5 of this Act on its amount taxable in Alberta, computed in accordance with

Part 4, for that taxation year.

(2) The income of a corporation for a taxation year shall be determined in accordance with

Part 2.

(3) The taxable income of a corporation for a taxation year shall be determined in accordance with

Part 3.

(3.1) Notwithstanding subsections (2) and (3), a corporation not resident in Canada shall compute its taxable income earned in Canada in accordance with

section 17.1.

(4) The amount taxable in Alberta of a corporation for a taxation year is to be determined in accordance with

Part 4. RSA 2000 cA-15 s5;2002 c28 s4 5.1 Repealed 2015 c21 Sched. 2 s1(5).

Part 2 Computation of Income Income for taxation year 6 Subject to sections 6.1 and 6.2, the income of a corporation for a taxation year is its income for the year determined by the following rules:

RSA 2000

Section 6.1

Chapter A-15 22 ALBERTA CORPORATE TAX ACT (

a) determine the aggregate o f amounts each of which is the corporation’s income for the year (other than a taxable capital gain from the disposition of a property) from a source inside or outside Canada, including, without restricting the generality of the foregoing, its income for the year from each business and property; (

b) determine the amount, if any, by which (

i) the aggregate of its taxab le capital gains for the year from dispositions of property other than listed personal property, and its taxable net gain for the year from dispositions of listed personal property, exceeds (ii) the amount, if any, by wh ich its allowable capital losses for the year from dispositions of property other than listed personal property exceed its allowable business investment losses for the year; (

c) determine the amount, if any, by which the aggregate determined under clause (

a) plus the amount determined under clause (

b) exceeds the aggregate of the deductions permitted by Division 4 of this

Part in computing the corporation’s income for the year (except such of or such part of those deductions, if any, as have been taken into account in determining the aggregate referred to in clause (a)); (

d) determine the amount, if any, by which the remainder determined under clause (

c) exceeds the aggregate of amounts each of which is its loss for the year from a business or property or its allowable business investment loss for the year; and for the purposes of this Act, (

e) where an amount is determined under clause (

d) for the yea r in respect of the corporation, the corporation’s income for the year is the amount so determined, and (

f) in any other case, the corpor ation is deemed to have income for the year in an amount equal to zero. RSA 2000 cA-15 s6;2001 c1 s4 Cost amount of property 6.1 Where the cost amount of property owned by a corporation is relevant in the computation of income for the purposes of this Act,

RSA 2000

Section 6.2

Chapter A-15 ALBERTA CORPORATE TAX ACT 23 the cost amount, for the purposes of this Act, of any property owned by the corporation at the time it establishes a permanent establishment in Alberta is deemed to be the cost amount of such property, at that time, for purposes of the computation of income under the federal Act. 2001 c1 s5 Rules for depreciable property 6.2 Where the property referred to in

section 6.1 is depreciable property and the capital cost of such property to the corporation immediately prior to the time the corporation establishes a permanent establishment in Alberta exceeds the cost amount of such property as determined under

section 6.1, for the purposes of applying those sections of this Act that make applicable for the purposes of this Act sections 13 and 20 of the federal Act and any federal regulations made for the purposes of paragraph 20(1)(

a) of the federal Act, (

a) the capital cost of the prop erty to the corporation is deemed to be the capital cost to the corporation of the property for the purposes of the federal Act immediately prior to the time it established a permanent establishment in Alberta, and (

b) the excess is deemed to have been deducted by the corporation under the sections of this Act that make applicable paragraph 20(1)(

a) of the federal Act. 2001 c1 s5 Income or loss 7(1) For the purposes of this Act, (

a) a corporation’s income or lo ss for a taxation year from a business, property or other source, or from sources in a particular place, is the corporation’s income or loss, as the case may be, computed in accordance with this Act on the assumption that it had during the taxation year no income or loss except from that source or no income or loss except from those sources, as the case may be, and was allowed no deductions in computing its income for the taxation year except such deductions as may reasonably be regarded as wholly applicable to that source or to those sources, as the case may be, and except such part of any other deductions as may reasonably be regarded as applicable thereto, and (

b) if the business carried on by a corporation was carried on partly in one place and partly in another place, the corporation’s income or loss for the taxation year from the business carried on by it in a particular place is the corporation’s income or loss, as the case may be, computed

RSA 2000

Section 8

Chapter A-15 24 ALBERTA CORPORATE TAX ACT in accordance with this Act on the assumption that it had during the taxation year no income or loss except from the part of the business that was carried on in that particular place and was allowed no deductions in computing its income for the taxation year except such deductions as may reasonably be regarded as wholly applicable to that part of the business and except such part of any other deductions as may reasonably be regarded as applicable thereto.

(2) Subject to subsection (3), in applying subsection (1) no deductions permitted by

section 60 of the federal Act, as made applicable by

section 11 of this Act, are applicable either wholly or in part to a particular source or to sources in a particular place, as the case may be.

(3) In applying subsection (1) for the purposes of

section 23 of this Act and subsections 104(22) and (22.1) of the federal Act, (

a) subject to clause (b), all deductions permitted in computi ng a corporation’s income for a taxation year, except any deduction permitted by paragraph 60(

o) of the federal Act, shall apply either wholly or in part to a particular source or to sources in a particular place, and (

b) any deduction permitted by s ubsection 104(6) or (12) of the federal Act shall not apply either wholly or in part to a source in a country other than Canada.

(4) Repealed 1997 c2 s2. RSA 1980 cA-17 s7;1982 c1 s4;1992 c2 s5;1995 c3 s12; 1997 c2 s2 Division 1 Income or Loss from a Business or Property Income or loss 8(1) Subject to subsections (1.1) to (3), subdivision b of Division B of

Part I of the federal Act applies in determining the income or loss of a corporation from a business or property for a taxation year.

(1.1) In the application of subdivision b of Division B of

Part I of the federal Act, a reference to amounts deducted under subsection 127(5) of the federal Act includes the amounts deemed to have been deducted under that subsection by subsection 127.1(3) or 192(10) of the federal Act.

RSA 2000

Section 8

Chapter A-15 ALBERTA CORPORATE TAX ACT 25

(2) Subdivision b of Division B of

Part I of the federal Act is deemed to include subsection 7(3) of the federal Act.

(2.001) In the application of subsection 12(1) of the federal Act, (

a) the reference in paragraph (

o) to “or in respect of the late receipt or non-receipt of any such amount” does not apply for the purposes of this Act, (

b) paragraph (x.1) does not a pply for the purposes of this Act, (

c) for each taxation year that ends after 2002 and before 200 7, the repeal of paragraph (

o) does not apply for the purposes of this Act, (

d) for taxation years that end after 2002 and before 2007, paragraph (z.5) shall be read as “25% of the taxpayer’s prescribed resource loss for the year”, (

e) notwithstanding paragraph (x.2) as it applies for the purposes of this Act, payments received under the Alberta Royalty Tax Credit program shall be excluded from the calculation of taxable income, (

f) for a taxation year that begins in 2006 and ends in 2007, the repeal of paragraph (

o) does not apply for the purposes of this Act to the proportion of the amount described by that paragraph that the number of days in the taxation year in 2006 bears to the number of days in the taxation year, and (

g) for a taxation year that begins in 2006 and ends in 2007, paragraph (z.5) shall be read as “that proportion of 25% of the taxpayer’s prescribed loss for the year that the number of days in the taxation year in 2006 bears to the number of days in the taxation year”. (2.002) Subsection 17(7) of the federal Act does not apply for the purposes of this Act.

(2.01) In the application of subsection 18(1) of the federal Act, (

a) paragraph (

a) shall be read as if “including but not limit ed to any tax payable under

Part 1 of this Act, any tax payable under the federal Act, any tax similar to that imposed under

Part 1 of this Act that is imposed by a province or any interest or penalties payable in respect of any of them” were added after “outlay or expense”, and (b), (b.1), (b.2) repealed 2014 c6 s1(6),

RSA 2000

Section 8

Chapter A-15 26 ALBERTA CORPORATE TAX ACT (

c) paragraph (

t) does not appl y for the purposes of this Act.

(2.011) If, in computing its income or loss for a taxation year from a business or property for the purposes of the federal Act, a corporation deducted an amount under paragraph 20(1)(

a) of the federal Act pursuant to subsection 1100(0.1) of the Income Tax Regulations (Canada), (CRC, c. 945), the corporation must deduct the same amount for the year for the purposes of this Act in accordance with those provisions as made applicable by this Act.

(2.02) Repealed 2014 c6 s1(6).

(2.03) Where a corporation has deducted an amount pursuant to paragraph 20(7)(

c) of the federal Act in computing its income or loss for a taxation year for the purposes of the federal Act, the corporation must deduct the same amount for the year for the purposes of this Act pursuant to that provision as made applicable by this Act.

(2.04) If, in computing its income or loss for its last taxation year ending before the coming into force of subsection (2.03) (in this subsection referred to as the “particular year”), a corporation deducted an amount pursuant to paragraph 20(7)(

c) of the federal Act as it applied for the purposes of this Act that was higher than the amount deducted pursuant to paragraph 20(7)(

c) of the federal Act in computing its income or loss for the purposes of the federal Act for the particular year, (

a) in computing its income or loss for the immediately following taxation year, the amount that shall be included by virtue of paragraph 12(1)(

e) of the federal Act as it applies for the purposes of this Act is the amount deducted by the corporation pursuant to paragraph 20(7)(

c) of the federal Act in computing its income or loss for the purposes of the federal Act for the particular year, and (

b) in computing its income or loss for the immediately following taxation year and for each of the 4 taxation years following that year, the corporation shall include an amount in income equal to 1/5 of the difference between the amount deducted pursuant to paragraph 20(7)(

c) of the federal Act in the computation of income or loss for the purposes of the federal Act for the particular year and the amount deducted pursuant to paragraph 20(7)(

c) of the federal Act as it applied for the purposes of this Act in the computation of income or loss for the purposes of this Act for the particular year.

RSA 2000

Section 8.3

Chapter A-15 ALBERTA CORPORATE TAX ACT 27 (2.1) Subsection 20(12) of the federal Act does not apply for the purposes of this Act.

(2.2) In determining the income of a corporation that is resident in Canada at any time in a taxation year from a business or property for the year, there may be deducted the amount described in subsection 20(12) of the federal Act less the amount that is deductible under subsection 126(1) of the federal Act.

(2.3) In determining the income of a corporation for a taxation year, taxes imposed by another province or territory of Canada and computed by reference to the amount of a corporation’s capital are not deductible for the purposes of this Act.

(3) In the application of subsection 22(2) of the federal Act, the reference to “Minister” is deemed to be a reference to the Provincial Minister. (4) Subsection 27(2) of the federal Act does not apply for the purposes of this Act. RSA 2000 cA-15 s8;2001 c1 s6;2002 c28 ss5,34;2004 c21 s2; 2007 c25 s2;2012 c4 s4;2014 c6 s1(6);2023 c13 s1(2) 8.1, 8.2 Repealed 1995 c3 s3. Application of federal Act 8.3

Section 246 except paragraph 246(1)(

b) of the federal Act applies in computing income except that the reference to

Part I of that Act is deemed to be a reference to this Act. 1990 c4 s6 Federal transfer pricing rules 8.4(1)

Section 247, except subsections (3) and (11), of the federal Act applies in computing income for the purposes of this Act.

(2) This

section applies to taxation years and fiscal periods that begin after 1997. 2001 c1 s7 Division 2 Taxable Capital Gains and Allowable Capital Losses Capital gains and capital losses 9(1) Subject to subsections (2) and (3), subdivision c of Division B of

Part I of the federal Act applies to determine the taxable capital gains and allowable capital losses of a corporation from the disposition of any property.

RSA 2000

Section 10

Chapter A-15 28 ALBERTA CORPORATE TAX ACT

(2) In the application of subdivision c of Division B of

Part I of the federal Act, a reference to amounts deducted under subsection 127(5) of the federal Act includes the amounts deemed to have been deducted under that subsection by subsection 127.1(3) or 192(10) of the federal Act.

(3) Where a corporation has claimed an amount pursuant to subparagraph 40(1)(a)(iii) of the federal Act in computing its gain from the disposition of a property for a taxation year for the purposes of the federal Act, the corporation must claim the same amount for that year for the purposes of this Act pursuant to that provision as made applicable by this Act. RSA 2000 cA-15 s9;2013 c11 s1 9.1 Repealed 1995 c3 s4. Division 3 Other Sources of Income Other sources of income 10(1) Subject to subsections (2) and (3), subdivision d of Division B of

Part I of the federal Act applies to other sources of income.

(2) In the application of paragraph 56(1)(

l) of the federal Act, a determination made by the Provincial Minister under

section 41(1.11) or (2) is deemed to be an assessment or reassessment by the Provincial Minister.

(3) Paragraph 59.1(

b) of the federal Act shall be read as though “subsections 152(4) and (5)” was struck out and “section 43 of this Act” was substituted. RSA 2000 cA-15 s10;2002 c28 s34 Division 4 Deductions in Computing Income Deductions 11(1) Subject to subsections (1.1) and (2), subdivision e of Division B of

Part I of the federal Act applies to deductions in computing income.

(1.1) In the application of subdivision e of Division B of

Part I of the federal Act, a reference to amounts deducted under subsection 127(5) of the federal Act includes the amounts deemed to have been deducted under that subsection by subsection 127.1(3) or 192(10) of the federal Act.

RSA 2000

Section 12

Chapter A-15 ALBERTA CORPORATE TAX ACT 29

(2) In the application of paragraph 60(

o) of the federal Act, a determination made by the Provincial Minister under

section 41(1.11) or (2) is deemed to be an assessment or reassessment by the Provincial Minister. RSA 2000 cA-15 s11;2002 c28 s34 Division 5 Rules Relating to Computation of Income Computation of income rules 12(1) Subject to subsection (2), subdivisions f and g of Division B of

Part I of the federal Act apply for the purposes of this Act.

(2) Subsections 67.5(2) and 69(12) of the federal Act do not apply for the purposes of this Act. RSA 2000 cA-15 s12;2001 c1 s8 Reimbursement of Crown charges 12.1(1)

Section 80.2 of the federal Act does not apply for the purposes of this Act in respect of reimbursement of Crown charges imposed in respect of production after December 31, 2002.

(2) Where, in respect of the period that begins on January 1, 2003 and ends on December 31, 2006, (

a) a taxpayer, under the terms of a contract, pays to another person an amount (in this

section referred to as the “specified payment”) that may reasonably be considered to have been received by the other person as a reimbursement, contribution or allowance in respect of an amount (referred to in clause (

b) as the “particular amount”) paid or payable by the other person, (

b) the particular amount is incl uded in the income of the other person or is denied as a deduction in computing the income of the other person by reason of paragraph 12(1)(

o) or 18(1)(

m) of the federal Act, as the case may be, as it applies for the purposes of this Act, and (

c) the taxpayer was resident in Canada or carrying on a business in Canada at the time the specified payment was made by the taxpayer, the following rules apply for the purposes of this Act, other than this section: (

d) the taxpayer is deemed neither to have made nor to have become obligated to make the specified payment to the

RSA 2000

Section 14

Chapter A-15 30 ALBERTA CORPORATE TAX ACT other person but to have paid an amount described in paragraph 18(1)(

m) of the federal Act as it applies for the purposes of this Act equal to the amount of the specified payment, and (

e) the other person is deemed n either to have received nor to have become entitled to receive the specified payment from the taxpayer. 2006 c10 s2;2017 c22 s2 13 Repealed 1990 c4 s8. Division 6 Corporations and Corporate Shareholders Computation of income of corporations 14(1) Subject to subsections (2), (3), (3.01), (3.02), (3.1), (3.2), (4) and (5) and sections 14.1, 14.2 and 14.3, subdivision h of Division B of

Part I of the federal Act applies for the purposes of this Act. (2) Paragraph 83(3)(

b) of the federal Act shall be read as though “penalty” was struck out and “penalty under subsection (4) of the federal Act” was substituted. (3) Subsections 83(3.1), (4) and (5) of the federal Act do not apply.

(3.01) Section 86.1 of the federal Act, except subsection (5), applies for the purposes of this Act if the information and the election required to be filed with the federal Minister are also filed with the Provincial Minister within the time period set out in

section 86.1 of the federal Act.

(3.02) Where the cost amount to the corporation of the original shares referred to in subsection 86.1(3) of the federal Act is different for the purposes of this Act than for the purposes of the federal Act, the information filed with the Provincial Minister under subsection (3.01) of this

section must include the cost adjustment calculation described in subsection 86.1(3) of the federal Act using the cost amount to the corporation of the original shares calculated for the purposes of this Act.

(3.1) Where there has been an amalgamation of 2 or more corporations and subsection 87(2) of the federal Act, as made applicable for the purposes of this Act, applies, the following rules also apply:

RSA 2000

Section 14

Chapter A-15 ALBERTA CORPORATE TAX ACT 31 (

a) repealed 1985 c1 s3; (

b) in order to determine the amount referred to in

section 25(3)(

a) for the new corporation at any time, there shall be added to the amount otherwise determined under that

section the aggregate of the amounts that would have been determined under

section 25(3)(

a) for each predecessor corporation immediately before the amalgamation; (

c) the aggregate of the over-integration tax adjustments of t he new corporation at the beginning of its first taxation year is the total of the aggregate of the over-integration tax adjustments of each predecessor corporation at the end of its last taxation year.

(3.2) If a taxable Canadian corporation has been wound up and subsection 88(1) of the federal Act, as made applicable for the purposes of this Act, applies, the following rules also apply: (

a) repealed 1985 c1 s3; (

b) in order to determine the amount referred to in

section 25(3)(

a) for the parent at any time in a taxation year ending after the commencement of the winding-up, there is to be added to the amount otherwise determined the amount that would have been determined under

section 25(3)(

a) for the subsidiary immediately before the commencement of the winding-up and

section 25(3) shall not apply to the subsidiary for the taxation year in which the winding-up commenced or any subsequent taxation year; (

c) there shall be added to the parent corporation’s aggregate of the over-integration tax adjustments at the beginning of its first taxation year after the commencement of the winding-up the aggregate of the over-integration tax adjustments of the subsidiary at the end of its last taxation year ending before that time.

(4) In the application of

section 89 of the federal Act for the purposes of this Act, (

a) the definition of “eligible dividend” in subsection (1) sh all be read as “any amount that is an eligible dividend for purposes of the federal Act”; (

b) the following

definitions apply instead of the

definitions of “general rate income pool” and “low rate income pool” in subsection (1):

RSA 2000

Section 14.1

Chapter A-15 32 ALBERTA CORPORATE TAX ACT (i) “general rate income pool” is deemed to be an amount equal to the value of the general rate income pool for purposes of the federal Act at the particular time; (ii) “low rate income pool” is deemed to be an amount equal to the value of the low rate income pool for purposes of the federal Act at the particular time; (

c) paragraph (

b) in the definition of “taxable Canadian corporation” in subsection (1) shall be read as though “under this Part” were struck out and “under

Part 1 of the federal Act and under this Act” were substituted.

(5) If a corporation makes an election under subsection 89(11) of the federal Act or revokes an election under subsection 89(12) of the federal Act, it is deemed to have made or revoked the same election for the purposes of this Act. RSA 2000 cA-15 s14;2001 c1 s9;2005 c25 s17;2008 c29 s2 Transfer of property to a corporation 14.1(1) Subsection 85(1) of the federal Act applies in respect of the transfer of property to a corporation for the purposes of this Act only if a valid federal election has been made under subsection 85(1) of the federal Act in respect of the transfer of that property.

(2) Subject to subsection (3), where subsection 85(1) of the federal Act applies for the purposes of this Act in respect of the transfer of property to a corporation, the amount deemed to be the proceeds of disposition of the property to the corporation or individual disposing of the property and the cost of the property to the corporation acquiring the property for the purposes of the federal Act is the amount to be deemed for the purposes of this Act.

(3) If (

a) the corporation disposing of the property was a qualified party for the taxation year in which it disposed of the property, and (

b) the corporation acquiring the property was a qualified par ty for the taxation year in which it acquired the property and throughout all of its taxation years beginning in the 36 months subsequent to the end of the taxation year in which it acquired the property, the corporation disposing of the property and the corporation acquiring the property may, for the purposes of this Act, jointly elect in the prescribed form and in accordance with

section 14.3(3) an amount under subsection (4) to be the proceeds of disposition of

RSA 2000

Section 14.2

Chapter A-15 ALBERTA CORPORATE TAX ACT 33 the property to the corporation disposing of the property and the cost of the property to the corporation acquiring the property.

(4) For the purposes of an election under subsection (3), one of the following may be elected: (

a) the amount deemed to be the proceeds of disposition and th e cost of the property under the federal Act; (

b) the amount equal to the amount in clause (

a) less the cost amount of the property for the purposes of the computation of income under the federal Act, plus the cost amount of the property for the purposes of the computation of income under this Act, both determined immediately before the disposition to which the election relates; (

c) an amount that is greater than the lesser of the amounts described in clauses (

a) and (b), but less than the greater of the amounts described in clauses (

a) and (b).

(5) For the purposes of subsection (3), a qualified party is a corporation whose Alberta allocation factor for the particular taxation year, as determined by

section 19, is at least 90%. 2001 c1 s10;2002 c28 s6;2003 c34 s3 Transfer of property from a partnership 14.2(1) Subsection 85(2) of the federal Act applies in respect of the transfer of property to a corporation from a partnership for the purposes of this Act only if a valid federal election has been made under subsection 85(2) of the federal Act in respect of the transfer of that property.

(2) Subject to subsection (3), where subsection 85(2) of the federal Act applies for the purposes of this Act in respect of the transfer of property to a corporation, the amount deemed to be the proceeds of disposition of the property to the partnership disposing of the property and the cost of the property to the corporation acquiring the property for the purposes of the federal Act is the amount to be deemed for the purposes of this Act.

(3) If (

a) one or more of the members of the partnership disposing of the property is a corporation, (

b) the partnership disposing of the property was a qualified party for the fiscal period in which it disposed of the property, and

RSA 2000

Section 14.3

Chapter A-15 34 ALBERTA CORPORATE TAX ACT (

c) the corporation acquiring the property was a qualified par ty for the taxation year in which it acquired the property and throughout all of its taxation years beginning in the 36 months subsequent to the end of the taxation year in which it acquired the property, all of the members of the partnership disposing of the property and the corporation acquiring the property may, for the purposes of this Act, jointly elect in the prescribed form and in accordance with

section 14.3(3) an amount under subsection (4) to be the proceeds of disposition of the property to the partnership disposing of the property and the cost of the property to the corporation acquiring the property.

(4) For the purposes of an election under subsection (3), one of the following may be elected: (

a) the amount deemed to be the proceeds of disposition and th e cost of the property under the federal Act; (

b) the amount equal to the amount in clause (

a) less the cost amount of the property for the purposes of the computation of income under the federal Act, plus the cost amount of the property for the purposes of the computation of income under this Act, both determined immediately before the disposition to which the election relates; (

c) an amount that is greater than the lesser of the amounts described in clauses (

a) and (b), but less than the greater of the amounts described in clauses (

a) and (b).

(5) For the purposes of subsection (3), a qualified party is (

a) in the case of a corporation, a corporation whose Alberta allocation factor for the particular taxation year, as determined by

section 19, is at least 90%, and (

b) in the case of a partnershi p, a partnership which, if it were treated as a corporation having a taxation year corresponding to its fiscal period, would have an Alberta allocation factor for the particular taxation year, as determined by

section 19, of at least 90%. 2001 c1 s10;2002 c28 s7;2003 c34 s4 Filing of election form 14.3(1),

(2) Repealed 2002 c28 s8.

(3) The election form referred to in sections 14.1(3) and 14.2(3) must be filed with the Provincial Minister by the corporation that

RSA 2000

Section 15

Chapter A-15 ALBERTA CORPORATE TAX ACT 35 acquired the property at the time its return is due for the last taxation year beginning in the 36-month period referred to in

section 14.1(3)(

b) or 14.2(3)(c), as the case may be. 2001 c1 s10;2002 c28 s8;2005 c25 s17;2017 c15 s1(5) Shareholders of non-resident corporations 15(1) Subject to subsection (2), subdivision i of Division B of

Part I of the federal Act applies for the purpose of computing the income of a corporation. (2) Paragraphs 95(6)(

a) and (

b) of the federal Act shall be read as though “under this Act” was struck out and “under the federal Act and under this Act” was substituted. RSA 1980 cA-17 s15 Division 7 Partnerships Partnership 16 Subject to sections 16.1 and 16.2, subdivision j of Division B of

Part I of the federal Act applies for the purposes of computing the income of a corporation. RSA 2000 cA-15 s16;2001 c1 s11 Transfer of property to a partnership 16.1(1) Subsection 97(2) of the federal Act applies in respect of the transfer of property from a corporation to a partnership for the purposes of this Act only if a valid federal election has been made under subsection 97(2) of the federal Act in respect of the transfer of that property.

(2) Subject to subsection (3), where subsection 97(2) of the federal Act applies for the purposes of this Act in respect of the transfer of property to a partnership, the amount deemed to be the proceeds of disposition of the property to the corporation disposing of the property and the cost of the property to the partnership acquiring the property for purposes of the federal Act is the amount to be deemed for the purposes of this Act.

(3) If (

a) the corporation disposing of the property was a qualified party in the taxation year in which it disposed of the property, (

b) one or more of the members of the partnership acquiring the property was a corporation, and

RSA 2000

Section 16.2

Chapter A-15 36 ALBERTA CORPORATE TAX ACT (

c) the partnership acquiring the property was a qualified par ty for the fiscal period in which the acquisition occurred and throughout all of its fiscal periods beginning in the 36 months subsequent to the end of the fiscal period in which it acquired the property, the corporation disposing of the property and all of the members of the partnership acquiring the property may, for the purposes of this Act, jointly elect in the prescribed form and in accordance with

section 16.2(3) an amount under subsection (4) to be the proceeds of disposition of the property to the corporation disposing of the property and the cost of the property to the partnership acquiring the property.

(4) For the purposes of an election under subsection (3), one of the following may be elected: (

a) the amount deemed to be the proceeds of disposition and th e cost of the property under the federal Act; (

b) the amount equal to the amount in clause (

a) less the cost amount of the property for the purposes of the computation of income under the federal Act, plus the cost amount of the property for the purposes of the computation of income under this Act, both determined immediately before the disposition to which the election relates; (

c) an amount that is greater than the lesser of the amounts described in clauses (

a) and (b), but less than the greater of the amounts described in clauses (

a) and (b).

(5) For the purposes of subsection (3), a qualified party is (

a) in the case of a corporation, a corporation whose Alberta allocation factor for the particular taxation year, as determined by

section 19, is at least 90%, and (

b) in the case of a partnershi p, a partnership which, if it were treated as a corporation having a taxation year corresponding to its fiscal period, would have an Alberta allocation factor for the particular taxation year, as determined by

section 19, of at least 90%. 2001 c1 s12;2002 c28 s9;2003 c34 s5 Filing of election form 16.2(1),

(2) Repealed 2002 c28 s10.

(3) The election form referred to in

section 16.1(3) must be filed by all of the members of the partnership with the Provincial

RSA 2000

Section 17

Chapter A-15 ALBERTA CORPORATE TAX ACT 37 Minister at the time when the return is first due for a member of the partnership that is a corporation for its taxation year that includes the last fiscal period of the partnership beginning in the 36-month period referred to in

section 16.1(3)(c). 2001 c1 s12;2002 c28 s10;2005 c25 s17;2017 c15 s1(6) Division 8 Trusts Trusts 17(1) Subdivision k of Division B of

Part I of the federal Act applies for the purposes of computing the income of a corporation.

(2) Section 122.1 of the federal Act applies for the purposes of applying

section 104 of the federal Act for the purposes of this Act. RSA 2000 cA-15 s17;2008 c29 s3;2014 c6 s1(9) Division 9 Non-Residents Taxable income of non-resident corporation 17.1(1) Sections 115, 115.1 and 115.2 of the federal Act apply for the purposes of determining the taxable income earned in Canada by a non-resident corporation. (2) Subsection 115(1) of the federal Act shall be read as if the references to

section 3 or any of its paragraphs in subsection 115(1) of the federal Act were references to

section 6 of this Act or the corresponding clauses of

section 6. RSA 2000 cA-15 s17.1;2002 c28 s11

Part 3 Computation of Taxable Income Taxable income of corporation 18(1) Taxable income for the taxation year shall be income as determined under

Part 2 of this Act plus any amount added under subsection (1.1) and less any deductions allowed by subsection (2).

(1.1) There may be added to a corporation’s taxable income otherwise determined for a taxation year any amount up to the amount added by the corporation under

section 110.5 of the federal Act to the extent that the addition does not increase an amount deductible by the corporation under

section 22 or 22.2 for the year.

(2) Subject to subsection (3), sections 110, 110.1, 111, 112 and 113 of the federal Act apply in the calculation of taxable income for the purposes of this Act.

(3) In the application of

section 111 of the federal Act

RSA 2000

Section 19

Chapter A-15 38 ALBERTA CORPORATE TAX ACT (

a) subparagraph 111(3)(a)(ii) does not apply, (a.1) paragraph (

b) under C i n the definition of “net capital loss” in subsection 111(8) shall be read as if “or claimed by the taxpayer under paragraph 186(1)(

c) or (d)” were struck out, (a.2) to determine the non-cap ital loss of a corporation for a taxation year, the reference to

section 110.5 under B in the definition of “non-capital loss” in subsection 111(8) shall be read as a reference to

section 18(1.1) of this Act, (a.3) subsection 111(10) does not apply, and (

b) with respect to the comput ation of taxable income for taxation years of a corporation to which this Act applies, no deduction shall be allowed for a corporation’s non-capital losses, net capital losses, restricted farm losses or farm losses determined under this Act for the 1983 or subsequent taxation years to the extent that those losses have been deducted in computing taxable income for taxation years of the corporation to which the Alberta Income Tax Act applies.

(4) Where the value of a gift has been determined under subsection 118.1(10) of the federal Act, the value of the gift as determined under that provision is the value of the gift for the purposes of this Act.

(5) Where the value of a gift has been determined under subsections 118.1(10.1) to (10.5) of the federal Act, the value of the gift as determined under those provisions is the value of the gift for the purposes of this Act. RSA 2000 cA-15 s18;RSA 2000 cA-30 s88;2001 c1 s63; 2002 c28 s12

Part 4 Computation of Amount Taxable in Alberta Division 1 Alberta Allocation Factor Alberta allocation factor 19(1) The Alberta allocation factor is the quotient obtained when taxable income earned in Alberta is divided by taxable income.

(1.1) For the purposes of sections 14.1(5), 14.2(5) and 16.1(5), in a year when a corporation or partnership does not have taxable income, the Alberta allocation factor shall be determined as if the

RSA 2000

Section 19.1

Chapter A-15 ALBERTA CORPORATE TAX ACT 39 taxable income of the corporation or partnership were $1 for the year.

(2) Subject to subsection (3), in this section, “taxable income earned in Alberta” means the amount determined in accordance with the regulations.

(3) Where a corporation is not resident in Canada, for the purposes of this Part and in the determination of taxable income earned in Alberta by the non-resident corporation, the reference to taxable income in subsection (1) shall be read as a reference to taxable income earned in Canada.

RSA 2000 cA-15 s19;2002 c28 s13;2003 c34 s6;2007 c25 s3; 2008 c29 s4 Division 2 Amount Taxable in Alberta Amount taxable in Alberta 19.1 The amount taxable in Alberta is the product obtained when taxable income less the royalty tax deduction is multiplied by the Alberta allocation factor. 2003 c34 s7 Division 3 Royalty Tax Deduction Royalty tax deduction 20(1) In this section, (a) “first successor pool” in res pect of a corporation means the amount by which (

i) a first successor pool a mount available to be carried forward that was acquired or deemed to have been acquired pursuant to subsection (7), (8) or (14), exceeds (ii) the aggregate of the royalty tax deduction claim amounts deducted under subsection (2) in respect of the pool for all taxation years ending after the pool amount available to be carried forward was acquired or deemed to have been acquired; (b) “pool amount available to be carried forward” at the end o f a taxation year means (

i) in respect of a first succes sor pool or a second successor pool, the pool amount available to be carried forward at the end of the immediately preceding taxation year, or

RSA 2000

Section 20

Chapter A-15 40 ALBERTA CORPORATE TAX ACT (ii) in respect of an unsucces sored pool, the net amount available for the taxation year in respect of the pool less the royalty tax deduction claim amount in respect of the pool for the taxation year, unless the corporation did not have a permanent establishment in Alberta at some time during the year, in which case the pool amount available to be carried forward at the end of the taxation year is deemed to be nil; (c) “property income” means an amount equal to such part of the corporation’s income for the year if no deduction were allowed under

section 65, 66, 66.1, 66.2, 66.4, 66.5 or 66.7 of the federal Act as may reasonably be regarded as attributable to the production of petroleum, natural gas or related hydrocarbons or metal or minerals from the properties acquired or deemed to have been acquired pursuant to subsection (7), (8) or (14) and in respect of which an amount was carried forward pursuant to subsection (7), (8) or (14) and included in the pool in respect of which the royalty tax deduction claim amount is being determined; (d) “second successor pool” in respect of a corporation means the amount by which (

i) a second successor pool am ount available to be carried forward that was acquired or deemed to have been acquired pursuant to subsection (7), (8) or (14), exceeds (ii) the aggregate of the royalty tax deduction claim amounts deducted under subsection (2) in respect of the pool for all taxation years ending after the pool amount available to be carried forward was acquired or deemed to have been acquired; (e) “unsuccessored pool ” in respect of a corporation means the amount determined by the formula: A + B – C w h e r e A is the amount deemed to have been acquired pursuant to subsection (7)(a),

RSA 2000

Section 20

Chapter A-15 ALBERTA CORPORATE TAX ACT 41 B is the aggregate of all am ounts each of which is the value of A calculated in accordance with subsection (6) for a taxation year, C is the aggregate of the r oyalty tax deduction claim amounts in respect of the pool for all taxation years.

(2) Subject to subsection (3), a corporation’s royalty tax deduction for the year is the aggregate of its royalty tax deduction claim amounts in respect of its unsuccessored pool, first successor pools and second successor pools.

(3) The corporation’s royalty tax deduction for the year cannot exceed its taxable income for the year.

(4) Subject to subsection (3), the royalty tax deduction claim amount of the corporation in respect of each first successor pool or second successor pool cannot exceed the lesser of (

a) the pool amount av ailable to be carried forward at the end of the immediately preceding taxation year, and (

b) property income in the taxation year.

(5) Subject to subsection (3), the royalty tax deduction claim amount of the corporation in respect of the corporation’s unsuccessored pool is the lesser of (

a) the net amount available fo r the taxation year as calculated under subsection (6), and (

b) taxable income of the cor poration for the year less the aggregate of all royalty tax deduction claim amounts for the year in respect of its first successor and second successor pools.

(6) The net amount available for a taxation year in respect of the corporation’s unsuccessored pool is the amount determined by the formula (A +

B) where A is the amount , if any, by which the aggregate of (

a) the amounts required to be included in computing the corporation’s income for the year by virtue of paragraph 12(1)(

o) of the federal Act as it applies for the purposes of this Act,

RSA 2000

Section 20

Chapter A-15 42 ALBERTA CORPORATE TAX ACT (

b) the amounts in respect of which no deduction is allowed in computing the corporation’s income for the year by virtue of paragraph 18(1)(

m) of the federal Act as it applies for the purposes of this Act, other than amounts described in the definition of “Canadian development expense” in subsection 66.2(5) of the federal Act or the definition of “Canadian oil and gas property expense” in subsection 66.4(5) of the federal Act, (

c) any amounts by which the fair market value, as determined under subsection 69(8) of the federal Act, of petroleum, natural gas or related hydrocarbons or metal or minerals disposed of under dispositions referred to in subsection 69(6) of the federal Act, exceeds the proceeds of disposition, if any, actually received by the corporation in respect of the petroleum, natural gas or related hydrocarbons or metal or minerals so disposed of, (

d) any amounts by which the amount referred to in subsection 69(7) of the federal Act in respect of acquisitions of petroleum, natural gas or related hydrocarbons or metal or minerals referred to in that subsection exceeds the fair market value, as determined under subsection 69(9) of the federal Act, of the petroleum, natural gas or related hydrocarbons or metal or minerals so acquired, and (

e) any amount that would be deemed to have been payable in the year by a trust to the corporation as beneficiary of the trust under subsection 104(29) of the federal Act, exceeds the aggregate of (

f) the amount of reimbu rsement received by the corporation under the terms of a contract, where the reimbursement was for an amount paid or payable by the corporation that is required to be included in computing its income or denied as a deduction in computing its income by virtue of paragraph 12(1)(

o) or 18(1)(

m) of the federal Act as it applies for the purposes of this Act, and (

g) the amount allowed to the corporation for the year under

section 8 in its adoption of paragraph 20(1)(v.1) of the federal Act; B is the pool amount available to be carried forward at the en d of the immediately preceding taxation year.

RSA 2000

Section 20

Chapter A-15 ALBERTA CORPORATE TAX ACT 43

(7) Notwithstanding

section 20(1)(b), where at the beginning of the first taxation year to which this

section applies, the corporation, or the corporation as a successor corporation or a second successor corporation, had attributed royalty income carry forward as defined in subsection (4) as it formerly read, (

a) the corporation is deemed to have acquired an unsuccessored pool amount available to be carried forward at that time equal to the attributed royalty income carry forward at the end of the immediately preceding taxation year in respect of which it was neither a successor corporation nor a second successor corporation as defined in subsection (5) or (6) as they formerly read, (

b) the corporation, formerly referred to as the successor corporation, is deemed to have acquired a first successor pool amount available to be carried forward at that time equal to the attributed royalty income carry forward at the end of the immediately preceding taxation year in respect of which it was a successor corporation as defined in subsection (5) as it formerly read, (

c) the corporation , formerly referred to as the second successor corporation, is deemed to have acquired a second successor pool amount available to be carried forward at that time equal to the attributed royalty income carry forward at the end of the immediately preceding taxation year in respect of which it was a second successor corporation as defined in subsection (6) as it formerly read, and (

d) the attributed royalty income carry forward of the corporation, the successor corporation and the second successor corporation is deemed to be nil.

(8) Except with respect to an amalgamation or winding-up to which subsection (10) or (11) applies, if a corporation has, at any time, acquired by purchase, amalgamation, merger, winding-up or otherwise from another person (in this subsection referred to as the “predecessor”) all or substantially all of the Canadian resource properties of the predecessor, (

a) the corporation is deemed to have acquired (

i) a first successor pool a mount available to be carried forward at the beginning of the taxation year in which the corporation acquired the properties equal to the unsuccessored pool amount that the predecessor would have been entitled to carry forward in respect of its taxation year in which the properties were acquired, and

RSA 2000

Section 20

Chapter A-15 44 ALBERTA CORPORATE TAX ACT (ii) second successor pool amou nts available to be carried forward at the beginning of the taxation year in which the corporation acquired the properties equal to the first successor pool amounts that the predecessor would have been entitled to carry forward in respect of its taxation year in which the properties were acquired, a n d (

b) the predecessor’s unsuccesso red, first successor and second successor pool amounts available to be carried forward at the end of the taxation year in which it disposed of the properties are deemed to be nil.

(9) Where a corporation is not resident in Canada, the references to taxable income in subsections (3) and (5) and

section 19.1 shall be read as a reference to taxable income earned in Canada.

(10) If there has been an amalgamation described in subsection 87(1) of the federal Act of corporations described in subsection 87(1.1) or (1.2) of the federal Act, the new corporation is, for the purposes of this section, deemed to be the same corporation as and a continuation of each predecessor corporation, except that this subsection shall in no respect affect the determination of any predecessor corporation’s fiscal period, taxable income or tax payable.

(11) For the purposes of this section, if the rules in subsection 88(1) of the federal Act applied to the winding-up of a subsidiary, its parent is deemed to be the same corporation as and a continuation of the subsidiary. (12) Subsection (8) does not apply to a corporation when the predecessor referred to in that subsection is exempt from tax under

Part I of the federal Act on its taxable income, unless the predecessor (

a) is a corporation referred to in paragraph 149(1)(

d) of the federal Act, and (

b) is a principal-business corporation as defined in subsecti on 66(15) of the federal Act.

(13) If a corporation is a member of a partnership, in computing for a taxation year each of the amounts described in the definition of A in subsection (6), it shall include its share of each of those amounts of the partnership, calculated as if the partnership were a corporation.

RSA 2000

Section 20

Chapter A-15 ALBERTA CORPORATE TAX ACT 45

(14) For the purposes of this section, where at any time (

a) control of a corporation is acquired by a person or group of persons, or (

b) a corporation ceases to be exempt from tax under this Act on its taxable income, so that subsection 66.7(10) of the federal Act as adopted by

section 11(1) applies for the purposes of this Act, the following rules apply: (

c) the corporation is deemed to have disposed of all of the Canadian resource properties owned by it immediately prior to that time and to have acquired all of those properties from a predecessor immediately after that time; (

d) the corporation’s unsuccesso red pool amount available to be carried forward at the beginning of the taxation year commencing at that time is deemed to be nil and the corporation is deemed to have acquired a first successor pool amount available to be carried forward equal to its unsuccessored pool amount available to be carried forward at the end of the taxation year ending immediately before that time; (

e) the corporation’s first su ccessor pool amounts available to be carried forward at the beginning of the taxation year commencing at that time are deemed to be nil and the corporation is deemed to have acquired second successor pool amounts available to be carried forward equal to its first successor pool amounts available to be carried forward at the end of the taxation year ending immediately before that time; (

f) the corporation’s second s uccessor pool amounts available to be carried forward at the beginning of the taxation year commencing at that time are deemed to be nil and no royalty tax deduction claim amounts may be claimed for the taxation year commencing at that time or any future taxation year in respect of those pools.

(15) This

section applies to taxation years beginning on or after the day this

section comes into force.

(16) Subject to subsection (17), all pool amounts available to be carried forward expire December 31, 2013.

RSA 2000

Section 20.1

Chapter A-15 46 ALBERTA CORPORATE TAX ACT

(17) The royalty tax deduction claim for a taxation year that begins in 2013 and ends in 2014 is that proportion of the royalty tax deduction for the year as otherwise determined that the number of days in the taxation year in 2013 bears to the number of days in the taxation year. RSA 2000 cA-15 s20;2002 c28 s14;2003 c34 s7;2004 c21 s3; 2005 c25 s2 Special definition for s20 20.1(1) Notwithstanding

section 20(1), in

section 20(2) to (7), “attributed Canadian royalty income” of a corporation for a taxation year commencing in 1998, 1999, 2000 or 2001 in which it had a permanent establishment in Alberta means the amount, if any, by which the aggregate of (

a) the amounts required to be included in computing the corporation’s income for the year by virtue of paragraph 12(1)(

o) of the federal Act as it applies for the purposes of this Act, (

b) the amounts in respect of which no deduction is allowed in computing the corporation’s income for the year by virtue of paragraph 18(1)(

m) of the federal Act as it applies for the purposes of this Act, other than amounts described in the definition of “Canadian development expense” in subsection 66.2(5) of the federal Act or the definition of “Canadian oil and gas property expense” in subsection 66.4(5) of the federal Act, (

c) any amounts by which the fair market value, as determined under subsection 69(8) of the federal Act, of petroleum, natural gas or related hydrocarbons or metal or minerals disposed of under dispositions referred to in subsection 69(6) of the federal Act exceeds the proceeds of disposition, if any, actually received by it in respect of the petroleum, natural gas or related hydrocarbons or metal or minerals so disposed of, (

d) any amounts by which the amount referred to in subsection 69(7) of the federal Act in respect of acquisitions of petroleum, natural gas or related hydrocarbons or metal or minerals referred to in that subsection exceeds the fair market value, as determined under subsection 69(9) of the federal Act, of the petroleum, natural gas or related hydrocarbons or metal or minerals so acquired, and (d.1) any amount that would be deemed to have been payable in the year by a trust to the corporation as beneficiary of the trust under subsection 104(29) of the federal Act if the

RSA 2000

Section 21

Chapter A-15 ALBERTA CORPORATE TAX ACT 47 reference in that subsection to paragraph 18(1)(l.1) as it applies for the purposes of this Act were struck out, exceeds the aggregate of (

e) the amount allowed to the corporation for the year under

section 8 in its adoption of paragraph 20(1)(v.1) of the federal Act as it applies for the purposes of this Act, and (

f) the amount of any reim bursement received by the corporation under the terms of a contract, where the reimbursement was for an amount paid or payable by the corporation that is required to be included in computing its income or denied as a deduction in computing its income by virtue of paragraph 12(1)(

o) or 18(1)(

m) of the federal Act as it applies for the purposes of this Act.

(2) For taxation years commencing in 1998, 1999, 2000 or 2001, the amounts referred to in

section 20(7) are the corresponding amounts referred to in subsection (1) of this section.

(3) For the purposes of this section, any reference to

section 20 is a reference to

section 20 as it read before the coming into force of

section 7 of the Alberta Corporate Tax Amendment Act, 2003. RSA 2000 cA-15 s20.1;2003 c34 s8;2006 c10 s3

Part 5 Computation of Income Tax Payable Tax payable by corporation 21 Except where otherwise provided in this Part, the tax payable under this Act by a corporation that has a taxation year (

a) ending before April 1, 1987 is 11% of the amount taxable i n Alberta for the year, (

b) part of which is before April 1, 1987 and part of which is after March 31, 1987 is the aggregate of (i) 11% of the proportion of the amount taxable in Alberta for the year that the number of days in the year before April 1, 1987 bears to the number of days in the year, and (ii) 15% of the proportion of the amount taxable in Alberta for the year that the number of days in the year after March 31, 1987 bears to the number of days in the year,

RSA 2000

Section 21

Chapter A-15 48 ALBERTA CORPORATE TAX ACT (

c) beginning after March 31, 1987 and ending before April 1, 1991 is 15% of the amount taxable in Alberta for the year, (

d) part of which is before April 1, 1991 and part of which is after March 31, 1991 is the aggregate of (i) 15% of the proportion of the amount taxable in Alberta for the year that the number of days in the year before April 1, 1991 bears to the number of days in the year, and (ii) 15.5% of the proportion of the amount taxable in Alberta for the year that the number of days in the year after March 31, 1991 bears to the number of days in the year, (

e) beginning after March 31, 1991 and ending before April 1, 2001 is 15.5% of the amount taxable in Alberta for the year, (

f) part of which is before April 1, 2001 and part of which is after March 31, 2001, is the aggregate of (i) 15.5% of the proportion of the amount taxable in Alberta for the year that the number of days in the year before April 1, 2001 bears to the number of days in the year, and (ii) 13.5% of the proportion of the amount taxable in Alberta for the year that the number of days in the year after March 31, 2001 bears to the number of days in the year, (

g) beginning after March 31, 2001 and ending before April 1, 2002 is 13.5% of the amount taxable in Alberta for the year, (

h) part of which is before April 1, 2002 and part of which is after March 31, 2002, is the aggregate of (i) 13.5% of the proportion of the amount taxable in Alberta for the year that the number of days in the year before April 1, 2002 bears to the number of days in the year, and (ii) 13.0% of the proportion of the amount taxable in Alberta for the year that the number of days in the year after March 31, 2002 bears to the number of days in the year, (

i) beginning after March 31, 2002 and ending before April 1, 2003 is 13.0% of the amount taxable in Alberta for the year, (

j) part of which is before April 1, 2003 and part of which is after March 31, 2003, is the aggregate of

RSA 2000

Section 21

Chapter A-15 ALBERTA CORPORATE TAX ACT 49 (i) 13.0% of the proportion of the amount taxable in Alberta for the year that the number of days in the year before April 1, 2003 bears to the number of days in the year, and (ii) 12.5% of the proportion of the amount taxable in Alberta for the year that the number of days in the year after March 31, 2003 bears to the number of days in the year, (

k) beginning after March 31, 2003 and ending before April 1, 2004 is 12.5% of the amount taxable in Alberta for the year; (

l) part of which is before April 1, 2004 and part of which is after March 31, 2004, is the aggregate of (i) 12.5% of the proportion of the amount taxable in Alberta for the year that the number of days in the year before April 1, 2004 bears to the number of days in the year, and (ii) 11.5% of the proportion of the amount taxable in Alberta for the year that the number of days in the year after March 31, 2004 bears to the number of days in the year, (

m) beginning after March 31, 2004 and ending before April 1, 2006 is 11.5% of the amount taxable in Alberta for the year, (

n) part of which is before April 1, 2006 and part of which is after March 31, 2006, is the aggregate of (i) 11.5% of the proportion of the amount taxable in Alberta for the year that the number of days before April 1, 2006 bears to the number of days in the year, and (ii) 10.0% of the proportion of the amount taxable in Alberta for the year that the number of days after March 31, 2006 bears to the number of days in the year, (

o) beginning after March 31, 2006 and ending before July 1, 2015 is 10.0% of the amount taxable in Alberta for the year, (

p) beginning after June 30, 2015 and ending before July 1, 2019 is 12.0% of the amount taxable in Alberta for the year, (

q) part of which is before July 1, 2015 and part of which is after June 30, 2015, is the aggregate of (i) 10.0% of the proportion of the amount taxable in Alberta for the year that the number of days before July 1, 2015 bears to the number of days in the year, and

RSA 2000

Section 21

Chapter A-15 ALBERTA CORPORATE TAX ACT 50 (ii) 12.0% of the proportion of the amount taxable in Alberta for the year that the number of days after June 30, 2015 bears to the number of days in the year, (

r) beginning after June 30, 2019 and ending before January 1, 2020 is 11.0% of the amount taxable in Alberta for the year, (

s) part of which is before July 1, 2019, part of which is aft er June 30, 2019 and ending before January 1, 2020, is the aggregate of (i) 12.0% of the proportion of the amount taxable in Alberta for the year that the number of days before July 1, 2019 bears to the number of days in the year, and (ii) 11.0% of the proportion of the amount taxable in Alberta for the year that the number of days after June 30, 2019 bears to the number of days in the year, (

t) beginning after December 31, 2019 and ending before July 1, 2020 is 10.0% of the amount taxable in Alberta for the year, (

u) part of which is before January 1, 2020, part of which is after December 31, 2019 and ending before July 1, 2020, is the aggregate of (i) 12.0% of the proportion of the amount taxable in Alberta for the year that the number of days before July 1, 2019 bears to the number of days in the year, (ii) 11.0% of the proportion of the amount taxable in Alberta for the year that the number of days after June 30, 2019 and before January 1, 2020 bears to the number of days in the year, and (iii) 10.0% of the proportion of the amount taxable in Alberta for the year that the number of days after December 31, 2019 bears to the number of days in the year, (

v) beginning after June 30, 2020 is 8.0% of the amount taxabl e in Alberta for the year, or (

w) part of which is before July 1, 2020 and part of which is after June 30, 2020, is the aggregate of (i) 12.0% of the proportion of the amount taxable in Alberta for the year that the number of days before July 1, 2019 bears to the number of days in the year,

RSA 2000

Section 22

Chapter A-15 ALBERTA CORPORATE TAX ACT 51 (ii) 11.0% of the proportion of the amount taxable in Alberta for the year that the number of days after June 30, 2019 and before January 1, 2020 bears to the number of days in the year, (iii) 10.0% of the proportion of the amount taxable in Alberta for the year that the number of days after December 31, 2019 and before July 1, 2020 bears to the number of days in the year, and (iv) 8.0% of the proportion of t he amount taxable in Alberta for the year that the number of days after June 30, 2020 bears to the number of days in the year.

RSA 2000 cA-15 s21;2001 c1 s13;2002 c28 s15;2003 c34 s9; 2004 c21 s4;2006 c10 s4;2015 c16 s1;2019 c5 s2;2020 c40 s1 Division 1 Small Business Deduction Small business deduction 22(1) In this section, (a) “active business” carried o n by a corporation means any business carried on by the corporation other than a specified investment business or a personal services business and includes an adventure or concern in the nature of trade; (b) “business limit” of a corpor ation for a taxation year has the meaning assigned to it by subsection 125(2) of the federal Act; (c) “Canadian-controlled private corporation” has the meaning assigned to it by subsection 125(7) of the federal Act; (d) “income of the corporatio n for the year from an active business” has the meaning assigned to it by subsection 125(7) of the federal Act; (e) “personal services business” carried on by a corporation in a taxation year has the meaning assigned to it by subsection 125(7) of the federal Act; (e.1) “specified corporate income” of a corporation for a taxa tion year has the meaning assigned to it by subsection 125(7) of the federal Act; (f) “specified investment busin ess” carried on by a corporation in a taxation year has the meaning assigned to it by subsection 125(7) of the federal Act;

RSA 2000

Section 22

Chapter A-15 ALBERTA CORPORATE TAX ACT 52 (f.1) “specified partnership b usiness limit” of a person for a taxation year has the meaning assigned to it by subsection 125(7) of the federal Act; (g) “specified partnership inc ome” of a corporation for a taxation year has the meaning assigned to it by subsection 125(7) of the federal Act; (h) “specified partnership loss” of a corporation for a taxation year has the meaning assigned to it by subsection 125(7) of the federal Act. (

i) repealed 2017 c15 s1(7).

(1.1) For the purposes of this section, if an amount paid or payable to a corporation, in this subsection referred to as the “recipient corporation”, by another corporation, in this subsection referred to as the “associated corporation”, with which the recipient corporation was associated in any particular taxation year, would otherwise be included in computing the income of the recipient corporation for the particular year from a source in Canada that is a property, (

a) the portion of the amount that was or may be deductible in computing the income of the associated corporation for any taxation year from an active business carried on by it in Canada is deemed to be income of the recipient corporation for the particular year from an active business carried on by it in Canada, and (

b) any outlay or expense, to the extent that it may reasonabl y be regarded as having been made or incurred by the recipient corporation for the purpose of gaining or producing the amount determined in clause (a), is deemed to have been made or incurred by the recipient corporation for the purpose of gaining or producing that income.

(2) Subject to subsection (2.01), there may be deducted from the tax payable under

section 21 for a taxation year ending before April 1, 2001 by a corporation that was, throughout the year, a Canadian-controlled private corporation, an amount equal to the product obtained when the small business allocation factor is multiplied by the applicable percentage for the taxation year of the least of (

a) the amount, if any, b y which the aggregate of (

i) the aggregate of all amount s each of which is the income of the corporation for the year from an active business

RSA 2000

Section 22

Chapter A-15 ALBERTA CORPORATE TAX ACT 53 carried on in Canada other than the income of the corporation for the year from a business carried on by it as a member of a partnership, and (ii) the specified partnership income of the corporation for the year exceeds the aggregate of (iii) the aggregate of all amount s each of which is a loss of the corporation for the year from an active business carried on in Canada other than a loss of the corporation for the year from a business carried on by it as a member of a partnership, (iv) the specified partnership l oss of the corporation for the year, and (

v) the corporation’s royalty tax deduction for the year, (

b) the amount, if any, by which the corporation’s taxable income for the year exceeds the aggregate of (

i) the aggregate of the amounts determined under subparagraphs 125(1)(b)(

i) and (ii) of the federal Act, (i.1) that part, if any, of the amount taxable in Alberta for the year that is not subject to income tax under this Act, and (ii) the corporation’s royalty tax deduction for the year, a n d (

c) the corporation’s business limit for the year.

(2.01) No amount may be deducted under subsection (2) for a taxation year in excess of the product obtained when the amount determined under

section 19.1 is multiplied by the applicable percentage for the taxation year.

(2.1) For the purposes of subsections (2) and (2.01), the applicable percentage (

a) for a taxation year ending before April 1, 1987 is 6%, (

b) for a taxation year, part of which is before April 1, 1987 and part of which is after March 31, 1987 is the aggregate of

RSA 2000

Section 22

Chapter A-15 ALBERTA CORPORATE TAX ACT 54 (

i) the proportion of 6% that the number of days in the year before April 1, 1987 bears to the number of days in the year, and (ii) the proportion of 10% that the number of days in the year after March 31, 1987 bears to the number of days in the year, (

c) for a taxation year begi nning after March 31, 1987 and ending before April 1, 1990 is 10%, (

d) for a taxation year, part of which is before April 1, 1990 and part of which is after March 31, 1990 is the aggregate of (

i) the proportion of 10% that the number of days in the year before April 1, 1990 bears to the number of days in the year, and (ii) the proportion of 9% that the number of days in the year after March 31, 1990 bears to the number of days in the year, (

e) for a taxation year begi nning after March 31, 1990 and ending before April 1, 1991 is 9%, (

f) for a taxation year, part of which is before April 1, 1991 and part of which is after March 31, 1991 is the aggregate of (

i) the proportion of 9% that the number of days in the year before April 1, 1991 bears to the number of days in the year, and (ii) the proportion of 9.5% th at the number of days in the year after March 31, 1991 bears to the number of days in the year, a n d (

g) for a taxation year beginning after March 31, 1991 and ending before April 1, 2001 is 9.5%.

(2.11) Subject to subsection (2.13), there may be deducted from the tax payable under

section 21 for a taxation year beginning before April 1, 2001 and ending after March 31, 2001 by a corporation that was, throughout the taxation year, a Canadian-controlled private corporation an amount equal to the product obtained by the multiplication of the following: (

a) the small business allocation factor for the year;

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Chapter A-15 ALBERTA CORPORATE TAX ACT 55 ( b ) 9 . 5 % ; (

c) the proportion of the least of the following amounts that the number of days in the year before April 1, 2001 bears to the number of days in the year: (

i) the amount determined under subsection (2)(a); (ii) the amount determined under subsection (2)(b); (iii) the corporation’s bus iness limit for the year.

(2.12) There may be deducted from the tax payable under

section 21 for a taxation year ending after March 31, 2001 by a corporation that was, throughout the year, a Canadian-controlled private corporation an amount equal to the product obtained by the multiplication of the following: (

a) the small business allocation factor for the year; ( b ) 8 . 5 % ; (

c) the proportion of the least of the following amounts that the number of days in the year after March 31, 2001 and before April 1, 2002 bears to the number of days in the year: (

i) the amount determined under subsection (2)(a); (ii) the amount determined under subsection (2)(b); (iii) 150% of the corporation’ s business limit for the year.

(2.121) There may be deducted from the tax payable under

section 21 for a taxation year ending after March 31, 2002 by a corporation that was, throughout the year, a Canadian-controlled private corporation an amount equal to the product obtained by the multiplication of the following: (

a) the small business allocation factor for the year; ( b ) 8 . 5 % ; (

c) the proportion of the least of the following amounts that the number of days in the year after March 31, 2002 and before January 1, 2003 bears to the number of days in the year: (

i) the amount determined under subsection (2)(a); (ii) the amount determined under subsection (2)(b);

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Chapter A-15 ALBERTA CORPORATE TAX ACT 56 (iii) 175% of the corporation’ s business limit for the year.

(2.122) There may be deducted from the tax payable under

section 21 for a taxation year ending after December 31, 2002 by a corporation that was, throughout the year, a Canadian-controlled private corporation an amount equal to the product obtained by the multiplication of the following: (

a) the small business allocation factor for the year; ( b ) 8 . 5 % ; (

c) the proportion of the least of the following amounts that the number of days in the year after December 31, 2002 and before April 1, 2003 bears to the number of days in the year: (

i) the amount determined under subsection (2)(a); (ii) the amount determined under subsection (2)(b); (iii) 155.56% of the corporati on’s business limit for the year.

(2.123) There may be deducted from the tax payable under

section 21 for a taxation year ending after March 31, 2003 by a corporation that was, throughout the year, a Canadian-controlled private corporation an amount equal to the product obtained by the multiplication of the following: (

a) the small business allocation factor for the year; ( b ) 8 . 5 % ; (

c) the proportion of the least of the following amounts that the number of days in the year after March 31, 2003 and before January 1, 2004 bears to the number of days in the year: (

i) the amount determined under subsection (2)(a); (ii) the amount determined under subsection (2)(b); (iii) 177.78% of the corporati on’s business limit for the year.

(2.124) There may be deducted from the tax payable under

section 21 for a taxation year ending after December 31, 2003 by a corporation that was, throughout the year, a Canadian-controlled private corporation an amount equal to the product obtained by the multiplication of the following: (

a) the small business allocation factor for the year;

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Chapter A-15 ALBERTA CORPORATE TAX ACT 57 ( b ) 8 . 5 % ; (

c) the proportion of the least of the following amounts that the number of days in the year after December 31, 2003 and before January 1, 2005 bears to the number of days in the year: (

i) the amount determined under subsection (2)(a); (ii) the amount determined under subsection (2)(b); (iii) 160% of the corporation’ s business limit for the year.

(2.125) Repealed 2006 c10 s5.

(2.126) There may be deducted from the tax payable under

section 21 for a taxation year ending after December 31, 2004 by a corporation that was, throughout the year, a Canadian-controlled private corporation an amount equal to the product obtained by the multiplication of the following: (

a) the small business allocation factor for the year; ( b ) 8 . 5 % ; (

c) the proportion of the least of the following amounts that the number of days in the year after December 31, 2004 and before April 1, 2006 bears to the number of days in the year: (

i) the amount determined under subsection (2)(a); (ii) the amount determined under subsection (2)(b); (iii) 133.34% of the corporati on’s business limit for the year.

(2.127) There may be deducted from the tax payable under

section 21 for a taxation year ending after March 31, 2006 by a corporation that was, throughout the year, a Canadian-controlled private corporation an amount equal to the product obtained by the multiplication of the following: (

a) the small business allocation factor for the year; ( b ) 7 . 0 % ; (

c) the proportion of the least of the following amounts that the number of days in the year after March 31, 2006 and before January 1, 2007 bears to the number of days in the year: (

i) the amount determined under subsection (2)(a);

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Chapter A-15 ALBERTA CORPORATE TAX ACT 58 (ii) the amount determined under subsection (2)(b); (iii) 133.34% of the corporati on’s business limit for the year.

(2.128) There may be deducted from the tax payable under

section 21 for a taxation year ending after December 31, 2006 by a corporation that was, throughout the year, a Canadian-controlled private corporation an amount equal to the product obtained by the multiplication of the following: (

a) the small business allocation factor for the year; ( b ) 7 % ; (

c) the proportion of the least of the following amounts that the number of days in the year after December 31, 2006 and before April 1, 2007 bears to the number of days in the year: (

i) the amount determined under subsection (2)(a); (ii) the amount determined under subsection (2)(b); (iii) the corporation’s bus iness limit for the year.

(2.129) There may be deducted from the tax payable under

section 21 for a taxation year ending after March 31, 2007 by a corporation that was, throughout the year, a Canadian-controlled private corporation an amount equal to the product obtained by the multiplication of the following: (

a) the small business allocation factor for the year; ( b ) 7 % ; (

c) the proportion of the least of the following amounts that the number of days in the year after March 31, 2007 and before April 1, 2008 bears to the number of days in the year: (

i) the amount determined under subsection (2)(a); (ii) the amount determined under subsection (2)(b); (iii) 107.5% of the corporation’ s business limit for the year.

(2.1291) There may be deducted from the tax payable under

section 21 for a taxation year ending after March 31, 2008 by a corporation that was, throughout the year, a Canadian-controlled private corporation an amount equal to the product obtained by the multiplication of the following:

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Chapter A-15 ALBERTA CORPORATE TAX ACT 59 (

a) the small business allocation factor for the year; ( b ) 7 % ; (

c) the proportion of the least of the following amounts that the number of days in the year after March 31, 2008 and before January 1, 2009 bears to the number of days in the year: (

i) the amount determined under subsection (2)(a); (ii) the amount determined under subsection (2)(b); (iii) 115% of the corporation’ s business limit for the year.

(2.1292) There may be deducted from the tax payable under

section 21 for a taxation year ending after December 31, 2008 by a corporation that was, throughout the year, a Canadian-controlled private corporation an amount equal to the product obtained by the multiplication of the following: (

a) the small business allocation factor for the year; ( b ) 7 % ; (

c) the proportion of the least of the following amounts that the number of days in the year after December 31, 2008 and before April 1, 2009 bears to the number of days in the year: (

i) the amount determined under subsection (2)(a); (ii) the amount determined under subsection (2)(b); (iii) 92% of the corporation’ s business limit for the year.

(2.1293) There may be deducted from the tax payable under

section 21 for a taxation year ending after March 31, 2009 by a corporation that was, throughout the year, a Canadian-controlled private corporation an amount equal to the product obtained by the multiplication of the following: (

a) the small business allocation factor for the year; ( b ) 7 % ; (

c) the proportion of the least of the following amounts that the number of days in the year after March 31, 2009 and before July 1, 2015 bears to the number of days in the year: (

i) the amount, if any, by which the aggregate of

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Chapter A-15 ALBERTA CORPORATE TAX ACT 60 (

A) the aggregate of all amou nts each of which is the income of the corporation for the year from an active business carried on in Canada other than an amount that is (

I) described in paragraph (

a) of the description of A in the definition of specified partnership income of the corporation in subsection 125(7) of the federal Act as it applies for the purposes of this Act for the year, (II) described in subparagraph (a)(

i) of the definition of specified corporate income of the corporation in subsection 125(7) of the federal Act, as it applies for the purposes of this Act for the year, or (III) paid or payable to the corporation by another corporation with which it is associated, that is deemed by subsection 129(6) of the federal Act as it applies for the purposes of this Act to be income for the year from an active business carried on by the corporation in circumstances where the associated corporation is not a Canadian-controlled private corporation, or is a Canadian-controlled private corporation that has made an election under subsection 256(2) of the federal Act as it applies for the purposes of this Act, in respect of its taxation year in which the amount was paid or payable, (

B) the specified partnersh ip income of the corporation for the year, and (

C) the specified corporate income of the corporation for the year exceeds the aggregate of (

D) the aggregate of all amou nts each of which is a loss of the corporation for the year from an active business carried on in Canada other than a loss of the corporation for the year from a business carried on by it as a member of a partnership, and (

E) the specified partnership loss of the corporation for the year;

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Chapter A-15 ALBERTA CORPORATE TAX ACT 61 (ii) the amount, if any, by which the corporation’s taxable income for the year exceeds the aggregate of (

A) the aggregate of the amounts determined under subparagraphs 125(1)(b)(

i) and (ii) of the federal Act as they apply for the purposes of this Act, and (

B) that part, if any, of the amount taxable in Alberta for the year that is not subject to income tax under this Act; (iii) the corporation’s busin ess limit for the year.

(2.1294) There may be deducted from the tax payable under

section 21 for a taxation year ending after June 30, 2015 by a corporation that was, throughout the year, a Canadian-controlled private corporation an amount equal to the product obtained by the multiplication of the following: (

a) the small business allocation factor for the year; ( b ) 9 . 0 % ; (

c) the proportion of the least of the following amounts that the number of days in the year after June 30, 2015 and before January 1, 2017 bears to the number of days in the year: (

i) the amount determined under subsection (2.1293)(c)(i); (ii) the amount determined unde r subsection (2.1293)(c)(ii); (iii) the corporation’s bus iness limit for the year.

(2.1295) There may be deducted from the tax payable under

section 21 for a taxation year ending after December 31, 2016 and before July 1, 2019 by a corporation that was, throughout the year, a Canadian-controlled private corporation an amount equal to the product obtained by the multiplication of the following: (

a) the small business allocation factor for the year; (b) 10%; (

c) the proportion of the least of the following amounts that the number of days in the year after December 31, 2016 bears to the number of days in the year: (

i) the amount determined under subsection (2.1293)(c)(i); (ii) the amount determined unde r subsection (2.1293)(c)(ii);

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Chapter A-15 ALBERTA CORPORATE TAX ACT 62 (iii) the corporation’s bus iness limit for the year.

(2.1296) There may be deducted from the tax payable under

section 21 for a taxation year ending after June 30, 2019 by a corporation that was, throughout the year, a Canadian-controlled private corporation an amount equal to the product obtained by the multiplication of the following: (

a) the small business allocation factor for the year; ( b ) 9 . 0 % ; (

c) the proportion of the least of the following amounts that the number of days in the year after June 30, 2019 and before January 1, 2020 bears to the number of days in the year: (

i) the amount determined under subsection (2.1293)(c)(i); (ii) the amount determined unde r subsection (2.1293)(c)(ii); (iii) the corporation’s bus iness limit for the year.

(2.1297) There may be deducted from the tax payable under

section 21 for a taxation year ending after December 31, 2019 by a corporation that was, throughout the year, a Canadian-controlled private corporation an amount equal to the product obtained by the multiplication of the following: (

a) the small business allocation factor for the year; ( b ) 8 . 0 % ; (

c) the proportion of the least of the following amounts that the number of days in the year after December 31, 2019 and before July 1, 2020 bears to the number of days in the year: (

i) the amount determined under subsection (2.1293)(c)(i); (ii) the amount determined unde r subsection (2.1293)(c)(ii); (iii) the corporation’s bus iness limit for the year.

(2.1298) There may be deducted from the tax payable under

section 21 for a taxation year ending after June 30, 2020 by a corporation that was, throughout the year, a Canadian-controlled private corporation an amount equal to the product obtained by the multiplication of the following: (

a) the small business allocation factor for the year;

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Chapter A-15 ALBERTA CORPORATE TAX ACT 63 ( b ) 6 . 0 % ; (

c) the proportion of the least of the following amounts that the number of days in the year after June 30, 2020 bears to the number of days in the year: (

i) the amount determined under subsection (2.1293)(c)(i); (ii) the amount determined unde r subsection (2.1293)(c)(ii); (iii) the corporation’s bus iness limit for the year.

(2.1299) Repealed 2020 c40 s1.

(2.13) Repealed 2004 c21 s5.

(2.2) For the purposes of subsections (2), (2.11), (2.12), (2.121), (2.122), (2.123), (2.124), (2.125), (2.126), (2.127), (2.128), (2.129), (2.1291), (2.1292), (2.1294), (2.1295), (2.1296), (2.1297) and (2.1298), the “small business allocation factor” is the Alberta allocation factor that would be determined if, during the taxation year, the corporation had no permanent establishment in a country other than Canada. (3) Subsections 125(3) and (4) of the federal Act apply for the purposes of this

section except that (

a) any references to the Mini ster are deemed to be references to the Provincial Minister, (

b) any agreement filed with the Provincial Minister may not allocate any different amount to a corporation than the amount allocated to the corporation pursuant to the agreement filed with the Minister of National Revenue pursuant to subsection 125(3) of the federal Act, (

c) where the corporation’s business limit for the taxation ye ar is multiplied by a percentage greater than 100% for the purposes of determining the corporation’s small business deduction for the year, any agreement filed with the Provincial Minister must allocate to the corporation at least the amount allocated to the corporation pursuant to the agreement filed with the Minister of National Revenue pursuant to subsection 125(3) of the federal Act, and (

d) where the corporation’s business limit for the taxation ye ar is multiplied by a percentage less than 100% for the purposes of determining the corporation’s small business deduction for the year, any agreement filed with the Provincial Minister cannot allocate to the corporation a

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Chapter A-15 ALBERTA CORPORATE TAX ACT 64 proportion of the business limit that is greater than the proportion that was allocated to the corporation pursuant to the agreement filed with the Minister of National Revenue pursuant to subsection 125(3) of the federal Act. (3.1) Subsections 125(3.2) and (8) of the federal Act apply for the purposes of this

section except that where an amount has been assigned (

a) by a corporation under subsection 125(3.2) of the federal Act, or (

b) by a person under subsection 125(8) of the federal Act that amount is deemed to be assigned for the purposes of this section.

(3.2) If the Minister of National Revenue dete

Document details

Collection	Alberta — Consolidated Statutes
Citation	RSA 2000 cA-15
Type	statute
Volume / chapter	A15
Language	en
Format	pdf
Source	PROVINCIAL
Identifier	5f394ea386014eb489f63fd476fee8102c8b0642

Source file is stored in the law ingest library (pdf).