• Service: Tax, Global Mobility Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 6/12/2014

Canada - Mining tax changes in Quebec budget 

June 12:  Quebec announced several measures that will affect the mining industry as part of the 2014-15 Quebec budget.

Among other changes, the Quebec budget proposes to reduce tax credits and deductions and confirms that the mining tax regime (originally proposed in May 2013) would be effective 1 January 2014.

Tax credits and deductions

The budget proposes to reduce the rates of the following tax credits by 20%:

  • The refundable tax credit for resources
  • The investment tax credit for a qualified property used mainly in the course of ore smelting, refining or hydrometallurgy activities, other than ore from a gold or silver mine, extracted from a mineral resource located in Canada

The budget also proportionally reduces the rates of two additional deductions related to flow-through shares investment by 20%.

As a result, the deductions an individual may claim would be equal to 110% (from 125%) or 120% (from 150%) for mining, oil or gas exploration expenses incurred in Quebec.

Read a June 2014 report prepared by the KPMG member firm in Canada: Quebec Budget Pledges Mining Tax Changes

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