THE LEADING PAN-ASIA MINING INVESTMENT CONFERENCE AND EXHIBITION
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Canada’s Tax Rates Federal Corporate income tax
15%
Provincial/Territorial Corporate income taxes Mining taxes (generally profit-based)
Rates vary from 10% to 16% Rates vary from 10% to 18%
Municipal Property tax
Varied
Since 2003, Canada’s federal corporate income tax rate has dropped from 29.12% (includes the 1.12% corporate surtax eliminated on January 1, 2008) to 15% in 2015. Canada’s internationally competitive tax regime features incentives such as the Canadian Exploration Expense (100% deduction), Canadian Development Expense (30% deduction), and a 3-year loss carry-back and 20-year loss carry-forward provision. In addition to the existence of a number of provincial/territorial tax and non-tax incentives for mineral exploration, royalties or mining taxes, for the most part, are profit-based rather than based on tonnage or revenue. A unique feature of Canada’s tax regimes is flow-through shares (FTS). Flow-through shares enable a company to transfer eligible exploration and development expenses to investors. These expenses or deductions can be used by investors to reduce their taxable income from Canadian sources. Because the shares carry a tax deduction, they are sold at a premium compared to regular shares, enabling a junior company to raise relatively more funds to continue its exploration activities. In 2000, the federal government introduced the Mineral Exploration Tax Credit (METC), a 15% income tax credit related to surface or above-surface exploration. The METC works in conjunction with Canada’s FTS mechanism and offers investors a 15% tax credit (reduction of taxes payable) in addition to a 100% write-off of exploration expenses. Canada has excellent mineral potential, a stable and favourable investment climate for mineral capital, and is open for business. Source: Natural Resources Canada Additional information is available on the Internet at: www.nrcan.gc.ca/mining-materials
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