Mining Taxation in Canada

The mining industry is a highly cyclical and capital-intensive, with a long lead time between initial investment and commercial production. Accordingly, the federal and provincial income tax and provincial mining tax systems treat exploration and other intangible mining expenses generously. Mining companies can recover most of their initial capital investment before they need to pay significant taxes. The income tax regimes also include generous loss carry-over rules that help mitigate the negative financial effects of fluctuating prices.

The income tax regimes also include generous loss carry-over rules that help soften the negative financial impacts of fluctuating prices.

Canada's mining taxation regimes are flexible enough to keep pace with industry trends. Changes are implemented transparently and are based on industry consultation so companies starting new projects know about the tax rules that will affect them before they make large investments.

Governments’ roles and responsibilities in natural resources
Read about the different powers held by local, municipal, provincial/territorial, federal and indigenous governments to manage their respective natural resources.

Taxes and levies
Learn about what powers are held by the municipal, provincial, territorial and federal governments when it comes to direct and indirect taxation.

Main tax instruments
Read an overview of key tax instruments that apply in Canada, including corporate income tax, withholding tax, capital taxes, mining taxes or Crown royalties, GST/HST and property taxes.

Structure and rates of main taxes
Consult tables summarizing the federal tax rules, Canadian corporate income tax rules that apply to mining, and features of provincial/territorial mining tax regimes.

Mining-specific tax provisions
Find out what special tax treatments mining activities are eligible for under Canada’s corporate income tax laws.

Tax administration
Learn about aspects of tax administration, including mineral resource certification, separate mine status, and production in reasonable commercial quantities.