Canada Extends Mining Tax Credit
March 2, 2015 Taxation in Canada
OTTAWA – The government of Canada has extended a critical tax break, which has been dubbed the “lifeblood” of the mineral exploration industry.
The tax credits currently available to investors into Canadian companies involved in mineral exploration will be extended for another year, now set to expire on March 31st 2016, according to information detailed by the Minister of Finance of Canada Joe Oliver in a speech over the weekend.
Currently, investors in junior mineral exploration companies, which are involved in only in assessment of potential mining sites, are eligible for a 15 percent tax credit.
The tax credit was initially intended to provide incentive to potential investors to provide extra funding to companies exploring potential new mining sites, and the evident success of the scheme has led to the program being dubbed the “lifeblood” of the junior mineral exploration industry.
The Minister explained that in the face of a turbulent economic environment the tax credit has continued to help fuel investment into the industry.
Over the course of 2013 approximately 19 000 individual investors took advantage of the tax credit, with investments into more than 250 separate companies.
Photo By: Department of Foreign Affairs and Trade