Newfoundland alters mining tax law

Newfoundland and Labrador have changed their mining tax policy to encourage investment.

Provincial corporate taxes will now be creditable against mining taxes for a mine’s first 10 operating years. Also, the depreciation schedule will now allow accelerated writeoffs.

Meanwhile, the processing allowance will be changed from 8% of the processing asset base to 8% of the processing asset base or 15% of taxable income, whichever is greater.