For mines that are not remote mines, the rate is 10% of an operator's profit in excess of $500,000 for 2004 and subsequent years. The annual profit exemption of $500,000 must be shared by associated corporations. The mining tax rates are prorated for taxation years which straddle the effective dates. Thereare adjustments for part ownership of a mine or a short production year.
The applicable mining tax rates are as follows:
|pre-May 2, 2000||May 2, 2000||Jan 1, 2001||Jan 1, 2002||Jan 1, 2003||Jan 1, 2004|
New Mine or Major Expansion
In the case of a new non-remote mine or a major expansion of a non-remote existing mine, the tax exemption is up to the first $10 million of profits from the mine which must be claimed within the first 36 months of the new mine or major expansion of an existing mine, whichever occurs first. In the case of a new remote mine, the tax exemption is up to the first $10 million of profits from the mine which must be claimed within the first 120 months of the new mine, whichever occurs first. After the tax exemption of profits for a new remote mine has been claimed, a tax rate of 5% is charged on profits derived from the operation of a remote mine.
|May 8, 1996|