Ontario Mining Tax

The Ontario Mining Tax Act and Regulation 769 made under the Mining Tax Act are administered by the Ministry of Finance under the Compliance Programs Division.

How is Mining Tax calculated?

Ontario mining tax is imposed on profits from the extraction of mineral substances raised and sold by operators of Ontario mines.

The tax rate on taxable profit subject to Mining Tax is 10% for non-remote mines and 5% for remote mines. The tax is applied to an operator's annual profit in excess of a $500,000 annual deduction, which must be shared by associated corporations. Furthermore, the deduction may be reduced on a pro-rata basis where the operator has a short taxation year, the operator has a part interest in the mine, or where the mine is out of production for 60 or more consecutive days.

Ontario mineral policy objectives are implemented, in part, through the use of tax and non-tax incentives. Tax incentives are provided under the Ontario Mining Tax Act (e.g., $10M profits exemption for new/expanded mines, up to 65% processing allowance profits reduction, 100% write-off for Exploration & Development expenditures, 100% write-off of mining assets for new mines, competitive 10% mining tax rate, low 5% remote mining tax rate etc.)

The $10 million profits exemption for non-remote mines is applicable to new mines and major expansions of existing mines and must be claimed within a 36-month exempt period. The $10 million profits exemption for remote mines is applicable to new mines only and must be claimed within a 120-month exempt period.

Non-tax incentives to improve the investment climate for mineral development and promote sustainable stewardship and management of mineral resources are governed under provisions of the Mining Act which is administered by the Ministry of Northern Development, Mines & Forestry.

Every mining operator liable to pay tax is required to register with the ministry. The definition of an operator includes members of partnerships and joint ventures that operate a mine.

How do I register for an Ontario Mining Tax account?

1. Register with the Ontario Ministry of Government Services to obtain your Ontario Corporation Number (OCN).
2. Complete the Request for Registration form [PDF - 576 KB] to request an account with the Ministry of Finance.

If you have any questions please call the ministry at 1 866 ONT-TAXS (1 866 668-8297).

How do I obtain my Mining Tax Return?

Starting with the 2011 taxation year, a personalized Ontario Mining Tax Return will be mailed to you during the last month of your taxation year.

How do I file my Mining Tax Return?

Starting with the 2011 taxation year, along with filing your personalized return, you can file using ONT-TAXS online. If you are required to file a return for a taxation year prior to 2011, please contact the ministry at 1 866 ONT-TAXS (1 866 668-8297).

You can file your return:

• online, using ONT-TAXS online
• by mail to: Ministry of Finance, 33 King Street West, PO Box 620, Oshawa ON L1H 8E9, or
• in person at certain ServiceOntario locations

To contact ServiceOntario:

• visit their website
• call: 416 326-1234 / 1 800 267-8097
• teletypewriter (TTY): 416 325-3408 / 1 800 268-7095
• fax: 416 325-3407

Provisions affecting the filing of the return, along with assessments, interest, penalty charges and refunds are similar to those provided under the Ontario Corporations Tax Act.

How do I register for ONT-TAXS online?

Visit ontario.ca/finance and select ONT-TAXS online and Get Started, or call us at 1 866 ONT-TAXS (1 866 668-8297).

How do I complete my Mining Tax Return and Schedules?

Detailed instructions on completing the new Mining Tax Return and Schedules can be found in the Mining Tax Return Guide.