After several months of deliberation and uncertainty, the Quebec government has finally announced changes to its mining tax regime.
According to the Quebec government, changes to the province’s mining tax regime will respect the five core principles it established:
The main changes announced, which apply to fiscal years beginning after December 31, 2013 (unless otherwise indicated), include:
The following is a brief overview of the proposed changes.
An operator’s minimum tax will equal the total of:
The $80 million limit must be prorated if the fiscal year is less than 12 months, and it must be shared by associated operators.
The OVMSH corresponds to the gross value of the operator’s output, less the amount of any expenses that are deductible for the purpose of calculating the operator’s annual earnings and incurred after the ore is brought to the first accumulation site.