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Federal and Provincial Alternative Minimum Tax (AMT)

Federal AMT Rate

1

15.0%

Basic minimum tax exemption$40,000

Typical additions in computing 

adjusted taxable income (ATI)

2

• 30% of capital gains—effectively, 80% of capital 

gains are included in income for AMT purposes (50% 

regular inclusion rate plus 30% AMT adjustment)

• 60% of stock option deductions claimed—effectively 

80% of stock option benefits are included for AMT 

purposes

• Carrying charges and capital cost allowance claimed 

on rental and leasing properties in excess of income 

earned therefrom

• Carrying charges and resource expenditures claimed on 

Canadian and foreign resource properties in excess of 

income earned therefrom

• Financing and other carrying charges claimed on limited 

partnerships in excess of income earned therefrom

• Tax shelter expenses claimed

Typical deductions in 

computing adjusted taxable 

income

2

 

• Gross-up applied to taxable Canadian eligible 

dividends (38% for dividends received in 2013)

• Gross-up applied to taxable Canadian non-eligible 

dividends  (25% for dividends received in 2013)

3

Carry forward period

4

7 years

Provincial AMT Rates

5

British 

Columbia 

  33.7%

Alberta 

   35.0%

Saskatchewan 

  50.0%

Manitoba   50.0%
Ontario 

   33.7% 

Québec

6 

   16.0%

New 

Brunswick 

  57.0%

Nova 

Scotia 

  57.5%

Prince Edward Island 

 

57.5%

Newfoundland and Labrador 

51.3%

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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Current as of May 3, 2013