This section explains Canadian international income tax rules with regards to mining. Topics explored are general rules and principles, taxation of foreign investment in Canada, taxation of Canadian investment abroad, and mining-specific provisions.
While Canada's mineral taxation regime has been stable for many years, it is not static. It keeps up with important trends in the industry, such as globalization, more holistic environmental and social responses, increased Aboriginal participation in mining, and optimization of recycling. However, significant changes are always implemented through a transparent consultative process to ensure that tax rules affecting the economics of new projects are known before massive amounts of capital are committed.
This Mineral Exploration Tax Credit (METC) is a measure designed to assist junior mining companies in raising new equity through the issuance of flow-through shares. This additional financing should help exploration companies to maintain, or increase, their level of exploration activities in Canada.