The tax credit for resources is a direct assistance mechanism for eligible mining corporations that incur eligible exploration expenses in Québec.
Eligible exploration expenses incurred may qualify for the following amounts:
- 35% of eligible exploration expenses incurred by non-operating corporations (38,75% when expenses are incurred in Québec Near-North and Far-North) until June 4, 2014. Beginning on June 5, 2014, the rates are 28% and 31% respectively;
- 15% for corporations operating a mineral resource (18,75% when expenses are incurred in Québec Near-North and Far-North) until June 4, 2014. Beginning on June 5, 2014, the rates are 12% and 15% respectively.
To qualify, companies must have an establishment and operate a business in Québec. They may claim the tax credit by attaching the form prescribed by Revenu Québec to their annual corporate tax return.
Eligible expenses include all exploration expenses incurred in Québec that have not been waived following an issue of flow-through shares pursuant to the Mining Tax Act. However, the expenses must have been paid at the time the tax return is filed.
The tax credit for resources is taxable under the Taxation Act, the Income Tax Act and the Mining Tax Act.
Note: The text of the Act always takes precedence.
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