Glossary
Active Business Income
Active business income is what a corporation earns from actually running its business, such as selling products or billing for services, rather than from passive holdings like interest or rent. The distinction matters because only active income can claim the small business deduction, the break that gives many companies their lowest tax rate. Drawing the line gets tricky when a company also holds investments alongside its operations. Our Alberta corporate tax guide shows how active income flows through to the rate a company actually pays.
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