The new Québec mining tax regime was announced on May
6th 2013, by the Minister of Finance, Nicolas Marceau,
accompanied by the Minister of Natural Resources, Martine
The Québec Government has presented a new regime under
which all mine operators in Québec will have to pay a
minimum mining tax.
The mining corporation will be required to pay the greater of
two amounts, either a minimum mining tax on ore extracted or a
mining tax on annual profit for a fiscal year starting after
December 31, 2013.
The minimum royalty rate is set at 1% for the first $80 million
of ore extracted and at 4% of the value of ore extracted in excess
of $80 million, these rates being applied to the output value of
the ore at the mine shaft head.
The mining tax on profit will be calculated according to a
progressive rate structure. The new tax rates to be applied will be
16%, 22% or 28% depending on profit margin, the Government having
provided for three segments of profit margin (from 0% to 35%, from
35% to 50% and from 50% to 100%).
Minister Marceau also stressed the importance of jobs in
Québec for processing activities, and therefore has added
incentives in the new tax regime in an effort to increase
processing in Québec.
Minister Ouellet spoke briefly about the future Mining Act and
indicated that this new mining tax regime has been developed in
order to be more transparent and in the context of more responsible
development of mining resources.
The details relating to the newly announced mining tax regime
may be found in the following documents which have been made
available by the Government:
Dentons is a global firm driven to provide you with the
competitive edge in an increasingly complex and interconnected
marketplace. We were formed by the March 2013 combination of
international law firm Salans LLP, Canadian law firm Fraser Milner
Casgrain LLP (FMC) and international law firm SNR Denton.
Dentons is built on the solid foundations of three highly
regarded law firms. Each built its outstanding reputation and
valued clientele by responding to the local, regional and national
needs of a broad spectrum of clients of all sizes –
individuals; entrepreneurs; small businesses and start-ups; local,
regional and national governments and government agencies; and
mid-sized and larger private and public corporations, including
international and global entities.
Now clients benefit from more than 2,500 lawyers and
professionals in 79 locations in 52 countries across Africa, Asia
Pacific, Canada, Central Asia, Europe, the Middle East, Russia and
the CIS, the UK and the US who are committed to challenging the
status quo to offer creative, actionable business and legal
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances. Specific Questions relating to
this article should be addressed directly to the author.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
While most are well aware that the sale of a business is generally a complex process, even sophisticated business owners are surprised by just how much cost and effort is required to complete the sale.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).