• Yukon has been a site location for a number of feature films including the 20th Century Fox's, "The Big Year" starring Steve Martin, Owen Wilson and Jack Black.
  • Small and medium-sized enterprises continue to be Yukon’s largest private sector employer.
  • Yukon’s workforce is highly educated, skilled, motivated and productive.
  • Yukon is home to one of the world’s largest iron ore deposits and one of the world’s largest undeveloped lead-zinc districts.
  • Yukoners enjoy a very high quality of life.
  • Yukon is open for business.
  • Yukon businesses are leading the way.
  • Partnerships are key to our success.

 

Corporate Tax and Royalty Rates

Mining and Exploration-Corporate Tax and Royalty Rates

Yukon mines are subject to different tax and royalty rates summarized in the chart below. In addition to the goods and services tax (GST) of 5 per cent, mining corporations pay a combined 30 per cent corporate tax rate and an after-profit royalty rate depending on the size of the operation.

Under the Quartz Mining Act (QMA), a royalty is a share of profits from a Yukon mine reserved for the Government of Yukon as owner of the mineral rights (a portion is paid to Yukon First Nations).

The royalty rate is calculated based on a mine’s total value of output. The value of the output is determined by the regulations in the Yukon QMA. The value is calculated by deducting the following from the value of the minerals produced:

  1. Operation and maintenance costs for producing and processing minerals; exploration, development, transport, and reclamation costs.
  1. Development allowance for the mine (see QMA).
  1. Depreciation for the mine (see QMA).
  1. Community and economic development expense allowance (see QMA).

In addition to corporate tax and royalty rates, other taxes on Yukon mines include, but are not limited to, property tax, mandatory employment related costs, and fuel taxes.

For more information please contact fininfo@gov.yk.ca.

“Yukon has the 12th (of 93 jurisdictions world-wide) most favourable tax regime.”  - Fraser Institute 2011

Type of Tax

Percentage

Conditions

YT Corporate Tax

15%

Income-based tax

Canada Corporate Tax

15%

Income-based tax

Sales Tax

5%

n/a

Royalties

0%
3%
5%
+1% up to 12%

Profit-based <$10,000
Profit-based <$1m
Profit-based <$5m
Profit-based +1% for each additional $5m to a max of 12%

TOTAL: 31 - 42%


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