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|
In the case of a new mine or a major expansion of an existing mine, the tax exemption is 3 years or $10 million of profits from the mine, whichever occurs first. After the exemption period of 10 years from the tax on mining applicable to new remote mines, a tax rate of 5% is charged on profits derived from the operation of a remote mine.