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Quebec Shakes Up Mining Tax Regime 

Canadian Tax Adviser


May 07, 2013


Hugues Lachance
Montreal, Canadian Corporate Tax


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. The new regime will come into effect as of January 1, 2014. Quebec expects this regime to generate $50 million in revenue for the 2015 fiscal year.

New regime
Under the new regime, the royalty rate for the minimum mining tax will be 1% for the first $80 million of ore extracted, and 4% of the value of ore extracted that exceeds $80 million. The regime also includes a progressive 16% to 28% tax on "excess" profits. According to Quebec, the higher 28% rate will apply when the profit margin exceeds 50%.


The new regime also includes an incentive to increase processing of ore in Quebec by introducing rules to enhance the resource allowance deduction.


For more information, contact your KPMG adviser.





Information is current to May 07, 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


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