• Small and medium-sized enterprises continue to be Yukon’s largest private sector employer.
  • 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.
  • Yukoners enjoy a very high quality of life.
  • Yukon is open for business.
  • Yukon is home to one of the world’s largest iron ore deposits and one of the world’s largest undeveloped lead-zinc districts.
  • Yukon businesses are leading the way.
  • Yukon’s workforce is highly educated, skilled, motivated and productive.
  • Partnerships are key to our success.

Corporate Tax and Royalty Rates

The oil and gas sector is subject to taxes and royalty rates designed to regulate oil and gas development. Like all businesses in Yukon, oil and gas companies must pay a federal sales tax and both a territorial and a federal income tax. Unlike the majority of jurisdictions in Canada, Yukon does not have a territorial sales tax. The Government of Yukon developed a competitive oil and gas fiscal regime that is mindful of Yukon’s resource-rich frontier with challenging high cost investment opportunities. The principal source of revenue will be from royalties. Other sources of revenue will be rental payments, cash bids, forfeited work commitment deposits, and administrative and licensing fees.

Royalties – Yukon's Royalty Regulations were promulgated in February 2008. The regulations are based on an ad valorem approach with the objectives of transparency and simplicity of administration for both government and industry.  The base oil and gas royalty is 10 per cent and increases to a maximum of 25 per cent in accordance with a price sensitive formula. A 2.5 per cent royalty rate is applied during an initial period of production.

Rentals – Rentals for oil and gas permits are indicated in the Standard Call for Bids document. Rentals are not payable for the initial term of a permit of 6 years, but are payable in the second term of permit of 4 years at $5.00 per hectare. Rentals for leases are also $5/hectare.

Fees – The following fees are charged applicants seeking to acquire or transfer Yukon oil and gas activity licenses:

Licence Fee
 Geophysical Licence $500
 Geochemical Licence $300
 Geological Licence $300
 Test Hole Licence $500
 Well Licence $500 
 Pipeline Licence $500
 Transfer of Licence $200
 Gas Processing Plant Licence $500
 Gas Export Licence $500
 Other Licences $300

Oil and Gas Corporate Tax, Royalty, Rental, and Licensing Rates
TYPE Rate Description
YT Corporate Tax 15% Income-based tax
Canada Corporate Tax 15% Income-based tax
Sales Tax 5% n/a
Royalties 2.5% Initial Period of Production
- 10% Base-rate
- ≥25% Step increases based on price-sensitive formula
Rentals $5/hectare Rentals for permits and leases
Licensing $300-$4100 Depending on which licenses are required for the project.

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