What is CIT?

Corporate Income Tax (CIT) is the tax levied on the net income of corporations operating in Canada. In Alberta, businesses must file an Alberta Corporate Income Tax Return (AT1) with the provincial Tax and Revenue Administration (TRA) if they have a permanent establishment in the province, in addition to their federal T2 return.

Provincial vs. Federal CIT

While the Canada Revenue Agency (CRA) collects federal income tax, Alberta is one of the distinct provinces that administers its own corporate income tax system. This means separate filing requirements and slightly different rules for deductions and credits.

CIT Compliance Requirements

Corporations must determine their taxable income, calculate their specific tax liabilities using appropriate provincial and federal rates, and remit payments on strict schedules to avoid compounding interest penalties.