Tables on the Structure and Rates of Main Taxes

Note 1:Declining balance method unless denoted by sl = straight-line, or N/A = not applicable.

Alberta

AB1 Before payout, the royalty is 1% of mine mouth revenue. After payout, the royalty is the greater of 1% of mine mouth revenue and 12% of net profits.

British Columbia

BC1 Instead of separate pool for depreciation, processing and exploration-related activities, British Columbia uses a cumulative expenditure account (CEA) in which all capital, development, and exploration-related costs are pooled
BC2 Operating income is defined as gross revenue less operating costs and annual contribution to mine reclamation.
BC3 The 1st tier royalty is creditable against the 2nd tier (13%) mining tax. The total royalty/mining tax is the sum of the two tiers.
BC4 A New Mine Allowance exists. You can deduct up to 1/3 of a mine's capital costs provided that:

1. the mine:
   1. is located on a property from which minerals had not previously been produced, and began producing minerals in reasonable commercial quantities after December 31, 1994, and before January 1, 2016;
   2. was before January 1, 1995 a closed or abandoned mine within the meaning of the Mines Act, and began producing minerals in reasonable commercial quantities after December 31, 1994, and before January 1, 2016;
   3. had ceased operations and had laid off substantially all of its operating work force before January 1, 1995, and began producing minerals in reasonable commercial quantities after December 31, 1994, and before January 1, 2016; or
   4. was expanded after December 31, 1994, and before January 1, 2016, to the extent that the greatest designed capacity, measured in tonnes of input of ore from the mine, was not less than 25% greater than it was in the fiscal year immediately preceding the expansion;
2. the costs were incurred:
   1. after December 31, 1994;
   2. before the coming into production or the completion of the expansion of the mine; and
   3. in the case of an expansion, in the course of and principally for the purposes of the expansion;
3. in the case of a mine that ceased operations, the costs were not incurred to acquire assets that were previously used in the operation of the mine or to compensate a previous operator for development expenditures; and
4. the costs were not incurred to acquire assets that were previously used for any purpose by a person with whom the operator was not dealing at arm's length.

Manitoba

MB1 The rate has been changed from a flat 18% to a sliding scale scheme, effective July 1, 2009.

10% when total operator’s profit is less than $50 million
15% when total operator’s profit is between $55 and $100 million
17% when total operator’s profit is over $105 million

MB2 Tax holiday until payback is achieved, available for new mines established after January 1, 1993.
MB3 Integrated with the mining tax holiday pool.
MB4 You can deduct the lower of processing allowances available and 65% of net income before processing allowance.

New Brunswick

NB1 In lieu of interest, you can deduct an interest/finance allowance, defined as 8% of undepreciated assets.
NB2 The 1st tier royalty is deductible against the 2nd tier mining tax. The total royalty/mining tax is the sum of the two tiers.

Nova Scotia

NS 1 total mining tax is the greater of the 1st tier and the 2nd tier payments.

Ontario

ON1 15% for processing assets and transportation assets; 100% for mining assets used in a start-up operation; 30% otherwise.

Quebec

QC1 Quebec in its Budget 2010 proposed a Substantial Change to the Mining Duties Act.
QC2 Mining duties rates are 12% before March 31, 2010; 14% after March 30, 2010; 15% in 2011; and 16% in 2012.
QC3 Off-site exploration activities after March 30, 2010 will no longer be eligible to receive the super-deduction of 150%.
QC4 Due to the 2010 tax reform, a fourth class will be created for such property acquired after March 30, 2010. The depreciation allowance rate for such new class will be 30%. In order to gradually limit the 100% depreciation of the third class property, the rules will specify that an operator may not claim a depreciation allowance regarding the fourth class property until the balance of the undepreciated capital cost of the third class property equals zero. This represents a considerable change.

Saskatchewan

Losses can be applied against and reduce future mining tax liabilities.