Mining Tax

The Mining Tax applies to all operators engaged in mining and/or processing minerals in Manitoba, but excluding oil and gas, and, rock, gravel, peat, clay and gypsum. The tax is applied at graduated rates on mining "profit", as opposed to a royalty basis that would apply a rate to the quantity of minerals extracted from the ground. In addition, there is a 0.5% special tax on mining "profit" and in most cases, based on certain income tax calculations, it is fully refundable.

For fiscal years ending after June 30, 2009, the tax applies at the following rates, where mining profit is:

• < $50 million; tax = mining profit x 10%.
• $50 to $55 million; tax = (mining profit - $50,000,000) x 65% + $5,000,000.
• Between $55 and $100 million; tax = mining profit x 15%.
• $100 to $105 million; tax = (mining profit - $100,000,000) x 57% + $15,000,000.
• > $105 million; tax = mining profit x 17%.

A ‘new mine tax holiday’ is in effect which provides that no Mining Tax is payable on new mines until the mining operator has recovered its initial investment.

 

Other Information on Mining

• 1996 Taxation Changes - Mining Industry
• Manitoba Industry, Economic Development & Mines

Manitoba Tax Publications

• Bulletins
• The Mining Tax Act and Schedule

Interest Rates