Alberta becomes Canada's top business destination due to its lowest national corporate tax rate
Alberta/IBNS: Alberta's corporate tax rate has dropped to eight per cent, at least 30 per cent lower than any other Canadian provincial rate, making it Canada's top business destination, media reports said.
Alberta's decision to implement the Job Creation Tax Cut a year and a half ahead of schedule facilitated the government to open for business with more confidence and certainty during its recovery from the COVID-19 pandemic, and freed up Alberta's resources for more jobs for Albertans.
To help support Alberta’s recovery plan, we are implementing the 8% Job Creation Tax Cut on July 1, sooner than promised, to ensure Alberta has the most competitive rate in Canada: https://t.co/R0uFmM9Bvn pic.twitter.com/xkfa3Vdkp4— Alberta Government (@YourAlberta) June 30, 2020
Due to Alberta's fiscal business opportunities, companies outside the province are motivated to relocate to Alberta to take advantage of the province’s competitive tax rate.
“As Alberta moves towards recovery, we remain committed to making our province one of the most tax-competitive jurisdictions in North America and the top business destination in the country. The Job Creation Tax Cut will dovetail with the new Innovation Employment Grant to support a wide range of Alberta job creators,” said Travis Toews, President of Treasury Board and Minister of Finance in a news release
Alberta's recent announcement of the Innovation Employment Grants, as part of Alberta’s Recovery Plan, which together with the Job Creation Tax Cut would facilitate the targeting of small and medium-sized companies in the early stages of operation.
These cumulative programs would encourage innovation, diversification and investment by businesses of all sizes in all sectors of the economy.
Apart from supporting the development of new products and ideas, a low general corporate tax rate also provides a strong incentive to commercialize those products here in Alberta, instead of other jurisdictions and help create thousands of good jobs for Albertans.
(Reporting by Asha Bajaj)
Image Credit: Alberta Economy/Twitter handle