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.
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%.
When ‘new mine tax holiday’ is in effect, no Mining Tax is payable on new mines until the mining operator has recovered its initial investment.
Other Information on MiningManitoba Tax Publications