Mining and Mineral Rights Tax

There are two components to this tax:

  • Mining Tax – imposed on mine operators carrying out mining activities in this province. A 15% tax is imposed on the net income of the operator. Net income equals gross revenue less allowable expenses including, operating and processing, depreciation, pre-production, exploration, crown royalties, processing and smelting allowances, and other prescribed deductions.
  • Mineral Rights Tax – imposed on the recipient of mineral production royalties. A 20% tax is imposed on royalty receipts less certain deductions including legal expenses incurred in the collection of the royalties and payment of rents or royalties to other persons.

For more information about corporate income taxes in Newfoundland and Labrador, please contact the Tax Administration Division.

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