Cost of Business

By Riley Fitzgerald on May 22, 2019 0 Comments • Tags: #alberta #business #calgary #development #tax

The City of Calgary is within the scope of the Province of Alberta. Because Alberta has no payroll tax, no provincial sales tax, free health care, low personal income tax rate, and the lowest fuel tax among others, it is also a great place to establish businesses because of its infrastructures, various industries, growing population, skilled workers, and investment opportunities.

Since 2015, the general Alberta corporate income tax rate is 12 percent while the income tax rate of small industries and businesses with earnings reaching up to $500,000 is reduced to 3 percent.

The total corporate income tax rate, including the provincial or federal corporate income tax rate in Calgary, is 27 percent for general industries and businesses and 14 percent for small businesses. A modest corporate income tax rate is allocated for manufacturers.

Other benefits that Calgary businesses enjoy is having no inventory tax, no machinery and equipment tax and, no payroll tax.

The business tax is levied on businesses occupying space in Calgary. It is calculated by multiplying the assessed value of the occupied space by the annual tax rate. However, the business tax is consolidated with the non-residential property tax rate. After the seven-year implementation time frame, the business tax revenues will be transferred to the non-residential property tax.

The Calgary business tax rate is, since 2016, approximately 4.27 percent while the total non-residential property tax rate is more or less 1.59 percent.  For more information on additional costs with regards to doing business, you may refer to our business development managers.