Information about Incorporation
Here are some basic FAQ in regards to incorporation:
Q: What is a corporation?
The Business Corporations Act defines a corporation as "a body corporate incorporated or continued under this Act and not discontinued under this Act". A corporation has the capacity, and, subject to the Business Corporations Act, the rights, powers and privileges of a natural person. A corporation has the capacity to carry on its business, conduct its affairs and exercise its powers in any jurisdiction outside Alberta to the extent that the laws of that jurisdiction permit.
Q: What is a corporate annual return? Does it have anything to do with taxes?
Answer: An annual return is information that the corporation must file for the year ending on the anniversary date of its incorporation or registration, or otherwise coming under the authority of the Business Corporations Act.
A corporate annual return details:
- the corporate access number
- the name of the corporation
- the corporation address
- the applicable period the report applies to whether changes have been made to the directors
- a list of shareholders, their addresses, and what percentage of voting shares they hold.
A Corporate Registry Annual Return has nothing to do with taxes. Contact Corporate Tax within the federal government or Alberta Corporate Tax at Alberta Revenue for more information on filing a corporate tax return.
How long do I have to file an annual return?
A: An annual return is due no later than the last day of the month following the anniversary month. For example, if the corporation was incorporated in June 2020, its annual return would be due no later than July 31, 2021 and all years ending July 31 thereafter.
Customs and Revenue Agency
Corporate Taxes Corporate income tax rates vary depending on the type of business and its net income. For information on Federal and Provincial corporate taxes please visit: "https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/corporation-tax-rates.html"
Different forms of income, such as interest, royalties, income from foreign subsidiaries, capital gains and dividends, are treated differently, making corporate business taxes complicated and constantly changing. The following are a few tax tips to remember:
- Depending on when you start operations, your corporation may have a taxation year other than the calendar year.
- Corporate taxes must be paid by monthly installments, based on either a tax payable estimate for the year or the tax paid the previous year.
- You should open a corporate tax installment account with Canada Customs and Revenue Agency as soon as your business operations begin.
- Corporate residents in Alberta must submit income tax returns separately to the federal and provincial governments.
- Corporate assets such as buildings, vehicles and equipment are not deducted from income in the same way as other expenses.
For an overview and comparison of tax rates visit the Alberta Economic Development Web site at http://www.alberta-canada.com/economy/
More information including Alberta corporate tax rates, small business deduction rates, fuel tax, tobacco tax and hotel room tax rates, and other services, publications and forms can be obtained by visiting the Alberta Revenue web site located at: http://www.finance.gov.ab.ca/
Goods and Services Tax and Harmonized Sales Tax - GST/HST - Canada Customs and Revenue Agency
The goods and services tax (GST) is a multi-stage tax that applies to most transactions throughout the production and marketing process. A quick method of accounting for the GST is available for small businesses with annual worldwide GST included sales of $200,000 or less including sales of associated businesses. You have to apply to the Canada Customs and Revenue Agency to use this method. If you do use this method, you have to continue using it for at least a year. Certain businesses cannot use this method, for example you cannot use this method if you are a lawyer, accountant or bookkeeper. There are other exceptions as well. For more information on the quick method, see the CCRA guide RC4058, Quick Method of Accounting for GST/HST
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses.html
For further GST information, please call 1-800-959-5525, see the document Goods and Services Tax and Harmonized Sales Tax or visit the Web site at http://www.cra-arc.gc.ca/tx/bsnss/menu-eng.html
For more information, please visit the following links:
For more information, please visit the following links: