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Tables on the Structure and Rates of Main Taxes

Table 1. Canadian Corporate Income Tax Rates Applicable to Mining (2019)
Province/Territory Federal
(%)
Provincial/
Territorial
(%)
Combined
(%)
Alberta 15.0 11.5 26.5
British Columbia 15.0 12.0 27.0
Manitoba 15.0 12.0 27.0
New Brunswick 15.0 14.0 29.0
Newfoundland and Labrador 15.0 15.0 30.0
Northwest Territories 15.0 11.5 26.5
Nova Scotia 15.0 16.0 31.0
Nunavut 15.0 12.0 27.0
Ontario 15.0 10.0 25.0
Prince Edward Island 15.0 16.0 31.0
Quebec 15.0 11.6 26.6
Saskatchewan 15.0 10.0 25.0
Yukon 15.0 12.0 27.0

 

Table 2 - Features of Provincial/Territorial Mining Tax Regimes
Province/Territory Alberta British Columbia Manitoba New Brunswick Newfoundland and Labrador Nova Scotia
Title of statute Metallic and
Industrial
Minerals
Royalty
Regulation
Minerals Tax
Act
The Mining Tax
Act
Metallic Minerals Tax
Act
Revenue
Administration
Act
Mineral
Resources
Act
Mining tax or
royalty rate
First tier 1% of mine-
mouth
revenue
2% on net
current
proceeds
n.a. 2% on net
revenue
15% 2% of net
revenue or
NSR
Second tier 12% of net
profits after
payout
13% on
net
revenue
10% (<$50 M);
65% ($50 M to $55 M);
15% ($55 M
to $100 M);
57% ($100 M to
$105 M);
17% (>$105 M)
16% on net
profit
20% 15% of net
income
Mining tax exemption for
new mines ($)
No No Yes The first tier
2% royalty is
exempted in the first
2 years
Up to $2 M/year
credit for first 10
years
No
Exploration expenses
deductibility rate
100% 100% 100-150% 150% 100% 100% first
3 years,
30% after
Pre-production development
expense deductibility rate
100% 100% 20% 100% Over the life of
the mine
100% first
3 years,
30% after
Depreciation
(Note 1)
Mining assets 15%
straight-line
100% 20% 5% minimum
for new or
expanded
mine assets,
other assets
33.33%
25% (100% for
new or expanded
mine assets)
100% first
3 years,
30% after
Processing
assets
25%
Processing
allowance
rates
Milling n.a. n.a. 20% 8% 8% 10%
Smelting 20% 15% 15% 10%
Refining 20% 15% 8% 10%
Other n.a. n.a. n.a. n.a.
Processing allowance caps 0-65% 0-65% 0-65% 0-65%
Special features A 10%
allowance is
permitted in
lieu of overhead
Investment
allowance
replaces the
deduction for
interest expenses; a 33.33% super-
deduction for
capital and
pre-production costs of new or
reopened mine
or major
expansion
Tax holiday until
payback is
achieved,
available for
new mines
established after January 1, 1993
Finance
allowance
replaces the
deduction for
interest
expense; new
mine exempt
from the 2%
royalty in the first 2 years;
the amount of 16% tax
payable is
reduced by
25% of eligible
process
research
expenditures
In computing
mining profit
subject to 15%
tax, a deduction
is allowed equal
to the greater of
20% of profits
(before this
allowance) and
non-Crown
royalties paid;
income taxes on
mining (up to $2 M per year)
deductible from
mining taxes for
first 10 years of
production
n.a.
Can mine reclamation fund contributions be deducted? Yes Yes Yes Yes Yes n.a.

 

Table 2. Features of  Provincial/Territorial Mining Tax Regimes (cont'd)
Province/Territory Ontario Quebec Saskatchewan Northwest
Territories
Nunavut Yukon
Title of statute Mining Tax
Act
Mining Tax
Act
The Mineral Taxation Act,
1983
Northwest
Territories and
Nunavut Mining
Regulations
Northwest
Territories and
Nunavut Mining
Regulations
Quartz
Mining Act
Mining tax or
royalty rate
First tier n.a. n.a. n.a. n.a. n.a. n.a.
Second tier 10% (5%
for remote
area)
16% 5% (cumulative sales up to 1 M
troy oz of
precious metals
or 1 M metric
tonnes of base
metals); 10%
(above the
thresholds)
Lesser of 13%
and following
formula:
$10 000 -
$5 M: 5%;
$5 M - $10 M:
6%; for every
additional
$5 M annual
profit, rate
increases by
1% to a maximum of
14%
Lesser of 13%
and following
formula:
$10 000 to
$5 M: 5%;
$5 M - $10 M:
6%; for every
additional
$5 M annual
profit, rate
increases by
1% to a maximum of
14%
$10 000-
$1 M: 3%;
$1-$5 M:
5%; $5-
10 M: 6%;
for every
additional
$5 M, rate
increases by
1% to a
maximum of 12%
Mining tax exemption for new
mines ($)
No tax for
profit under $0.5 M/
year; no tax
for the first
$10 M or
first 3 years
(10 years
for remote
area),
whichever
comes first
No 10-year holiday
for new mines
No No No
Exploration expenses
deductibility rate
100% 100-125% 150% 100% 100% 100%
Pre-production development
expense deductibility rate
100% 150% 100% 100% 100% 100%
Depreciation
(Note 1)
Mining
assets
30% straight-line
(100% for
new mine)
30% 100% 100% 100% 15%
straight-line
Processing
assets
15%
straight-line
Processing
allowance
rates
Milling 8% 7% n.a. 8% 8% Ministerial
decision
Smelting 12% 13% 8% 8% n.a.
Refining 16% 13% 8% 8% n.a.
Other 20%
northern
Ontario
refining
n.a. n.a. n.a. n.a.
Processing allowance caps 15-65% 0-55% 0-65% 0-65% Ministerial
decision
Special features No mining
taxes are
payable in
first three
years of
production
on profits
below $10 M; the
period is
extended to
10 years for
mines in
remote
locations;
5% tax rate
for mines in
remote
locations
Effective
April 1, 2010,
a cash refund
equal to the
lesser of 16%
of the non-
capital loss
and 8% of the
aggregate of
exploration
and develop-
ment costs is
available
10-year tax
holiday for new
mines, starting in
2007; 150% of
pre-production
expenses are
recovered prior
to any royalties
being payable;
separate
royalties apply
to potash, coal
and uranium
producers
Acquisition
cost of
expansion
claims
deductible
within limits
Acquisition
cost of
expansion
claims
deductible
within limits
 
Can mine reclamation fund contributions be deducted? Yes Yes Yes Yes Yes No

M = million; n.a. = Not applicable.
Note 1: Declining-balance method unless denoted by sl = straight-line or n.a. = not applicable.

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