Taxation Rates

Federal 2004 tax rates on taxable income:

16% up to $35,000
22% from $35,001 to $70,000
26% from $70,001 to $113,804
29% over $113,804

Alberta's 2004 tax rates on taxable income:

10% on all income

Capital gains

50% of the actual capital gain is included in income

Registered Retirement Savings Plans (RRSPs):

Contribution limit is 18% of the previous year's earned income (less any previous year's pension adjustments plus any pension adjustment reversals).

Earned income includes:

employment earnings, less union dues and/or employment expenses
research grants
self-employment net income
active partnership income
net rental income and/or current year rental losses
royalties
CPP disability pensions
Alimony or separation payments
Employee profit sharing plan distributions

Annual RRSP maximum contributions:

$14,500 in 2004
$15,500 in 2005
$18,000 in 2006
indexed in 2007 and beyond (based on the average wage growth in Canada)

When running your business it's important to have professional advice.

Is a Certified Accountant handling your Accounting?

122 Elma Street
Okotoks, Alberta T1S 1J9

Phone:	(403) 938-4064
Fax:	(403) 938-7066

Regular Business Hours - Monday to Friday 9:00 AM to 5:00 PM