The Alberta government has announced a Job Creation Tax Cut aimed at making Alberta a magnet for new business investment. This corporate tax cut will bring the provincial corporate tax down to 8% which is the lowest tax rate in Canada by far. British Columbia’s corporate tax rate, at 12%, is 50% higher than Alberta’s.
This announcement makes the Edmonton Metropolitan Region one of the most attractive regions in North America for employers to locate. It sends a clear message to international investors that Alberta is serious about being the most competitive jurisdiction to invest and do business in as our economy recovers from the effects of the Covid-19 pandemic. The new corporate tax rate also means that Alberta will have the 7th lowest corporate tax rate when compared to the American States.
This announcement was part of the provincial government’s Alberta Economic Recovery Plan announced on June 29, 2020. The initiatives announced also include a focus on the technology and innovation sectors which are primed for growth in our region.
“We applaud the Government of Alberta on its technology and innovation focus which will help to position Alberta not only for recovery but increased competitiveness as a location for innovative companies and entrepreneurs,” said Adam Legge, President of the Business Council of Alberta in a statement following the Provincial announcement. “This is about building on Alberta’s natural strengths, and also accelerating diversification of the economy by support start-ups, technology, and innovation”.
The tech industry has the ability to help all our key sectors rise. From life sciences and manufacturing to energy and agriculture, a focus on technology innovation will lay a framework that industry can use to scale up.