Canada - English

Bill 55 - Quebec Introduces Mining Tax Legislation 

Canadian Tax Adviser


November 19, 2013


Hugues Lachance
Montreal, Canadian Corporate Tax


Quebec Bill 55, which contains amendments to Quebec's Mining Tax Act, received first reading in the Quebec legislature on November 12, 2013. The 28-page bill introduces a new method for computing mining tax, among other changes. The new regime is scheduled to come into effect as of January 1, 2014. However, because Quebec has a minority government it is not certain that this bill will become law.

The Quebec Minister of Finance presented details of Quebec's new mining tax system on May 6, 2013. Under the new regime in Quebec's Mining Tax Act, mining operators in Quebec will be required to pay the higher of a new minimum mining tax applied to the value of the ore at the mine shaft head and a progressive tax on excess profits.


Mining tax changes
Bill 55 makes several changes to the Mining Tax Act including:


  • Introducing progressive mining tax rates ranging from 16% to 28% (replacing the single tax rate of 16%)
  • Implementing a minimum mining tax based on the mine-mouth output value
  • Implementing a non-refundable duties credit on account of the minimum mining tax
  • Increasing the processing allowance
  • Introducing anti-avoidance rules to ensure compliance with the Mining Tax Act.


For more information, contact your KPMG adviser.






Information is current to November 19, 2013. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500


Canadian companies may be interested in these recent publications: