Mining companies in Quebec face one of the highest tax burdens in Canada
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MONTREAL, Sept. 7, 2011 /CNW/ – An independent study conducted by PwC on provincial taxation of mining companies in Canada reveals that nearly 41% of mining profits in Quebec are paid as taxes and royalties, including the federal component, while the Canadian weighted average based on the value of output is 36.8%. Quebec ranked 11th back in 2007, when it was the lowest taxing province; today, it ranks third.
“Amid the ongoing lively debate over mining company taxation in Quebec, a number of the study’s conclusions are relevant when it comes to taking a new look at Quebec’s tax regime, particularly income tax and the mining tax”, said Nochane Rousseau, Leader‚ Mining Industry Services and PwC’s Plan Nord Initiative.
•In Canada, the overall tax burden (combined federal/provincial) in all jurisdictions fell between 2007 and 2011 (going from weighted average based on the value of output of 40.7% to 36.8%), with the exception of Quebec, where it rose from 35.4% to 40.9%.
•In Quebec, 41% of mining profits are paid as taxes and royalties, including the federal component. Quebec has the third-highest overall tax burden (combined provincial/federal) in Canada.