Saskatchewan Mineral Exploration Tax Credit
SK, Canada
Tax credit for investors in Saskatchewan mineral exploration
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|projectCostPercent
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- grant_single|timelineUnspecified
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- Mining, quarrying, and oil and gas extraction
grant_single|grantors
- Government of Saskatchewan
- Ministry of Energy and Resources (SK)
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grant_card_status|open
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Non-refundable tax credit of 10% for Saskatchewan taxpayers who invest in shares issued by mining or exploration companies.
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The Saskatchewan Mineral Exploration Tax Credit (SMETC) supports mineral exploration activities for approved mineral exploration companies within Saskatchewan.
- Exploration of mineral resources within Saskatchewan
- Issuing of flow-through shares or flow-through warrants to raise capital
- Utilizing funds from flow-through shares for exploration purposes
grant_single|admissibleProjectsExample
$150,000
Prince Albert
Installation of exploration camp near Prince Albert for mineral resource assessment.
$120,000
Athabasca Basin
Magnetic survey in the Athabasca Basin region for uranium exploration.
$180,000
Flin Flon
Diamond drilling program near Flin Flon to identify potential gold deposits.
$135,000
Regina
Soil sampling and geochemical analysis near Regina for copper exploration.
$210,000
La Ronge
Seismic survey in the La Ronge area for potential diamond exploration.
grant_single_labels|admissibility
Eligibility for the Saskatchewan Mineral Exploration Tax Credit includes criteria for individual investors, partnerships, and exploration companies.
- Individuals, other than trusts, may purchase eligible flow-through shares from an approved mineral exploration company.
- Investments in partnerships must be broken down to individual investors, and tax credits issued to individuals based on eligible flow-through exploration expenditures within Saskatchewan.
- Mineral exploration companies must apply to the Saskatchewan Ministry of Energy and Resources to issue flow-through shares or flow-through warrants and receive approval.
grant_eligibility_criteria|who_can_apply
Any mineral exploration company wishing to issue flow-through shares or flow-through warrants and take advantage of the Saskatchewan Mineral Exploration Tax Credit (SMETC) must apply to the Saskatchewan Ministry of Energy and Resources. If the application is approved, the company will receive written permission to raise up to a maximum amount of capital for exploration activities in the province.
- Mineral exploration company wishing to issue flow-through shares or flow-through warrants
- Company must apply to the Saskatchewan Ministry of Energy and Resources
- Receive approval to raise capital for exploration activities in Saskatchewan
grant_eligibility_criteria|eligible_expenses
Eligible expenses for the Saskatchewan Mineral Exploration Tax Credit (SMETC) are those associated with mineral exploration activities within Saskatchewan. Investors can claim deductions for these expenses in calculating their own taxable income.
- Mineral exploration expenses
grant_eligibility_criteria|zone
This grant is eligible for mineral exploration activities occurring within the province of Saskatchewan.
- Province of Saskatchewan
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- Step 1: Submit the following items to the ministry at metc@gov.sk.ca:
- A copy of the completed Canada Revenue Agency (CRA) Form T100A Flow-Through Share Information – Application for a Selling Instrument T100 Identification Number (SITIN) plus all other related documents required by CRA.
- A copy of the CRA approval letter containing the Selling Instrument T100 Identification Number (SITIN) or T100 Identification Number (TIN).
- A list of the Saskatchewan Disposition Number(s) where the mineral exploration is occurring.
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The SMETC program provides an attractive tax credit for Saskatchewan residents who invest in mineral exploration within the province, encouraging long-term sustainable development of its mineral resources. Investors can benefit from substantial tax deductions while supporting local exploration activities conducted by approved companies.
- Contact: Aaron Saufert, Director, Mineral Programs and Development
- Email for applications/inquiries: metc@gov.sk.ca
- Phone: 306-787-3377
grant_single_labels|contact
metc@gov.sk.ca
306-787-3377
Apply to this program
Saskatchewan Mineral Exploration Tax Credit Summary
The Saskatchewan Mineral Exploration Tax Credit (SMETC) is a tax incentive program designed to encourage investment in mineral exploration within Saskatchewan by allowing residents to purchase eligible flow-through shares. Investors receive significant tax credits, enhancing capital for exploration companies and fostering sustainable resource development.
Saskatchewan Mineral Exploration Tax Credit Detailed Explanation
The Saskatchewan Mineral Exploration Tax Credit (SMETC) is a specialized program tailored to bolster the province's commitment to developing its mineral resources. This tax credit program seeks to create a vibrant and competitive mineral exploration sector by offering substantial tax incentives to investors, thereby enabling exploration companies to attract the capital necessary for their operations. Let us delve into the specifics of this program, its benefits, eligibility criteria, application process, and reporting requirements.
Benefits of the SMETC
The primary goal of the SMETC is to foster long-term and sustainable development of Saskatchewan's mineral resources. It offers multiple benefits to various stakeholders:
- Individual Investors: Saskatchewan residents can invest in approved mineral exploration companies by purchasing eligible flow-through shares. In return, these investors receive a generous tax credit ranging from 45% to 60% (inclusive of 30% provincial and 15% to 30% federal tax credits), which significantly reduces their taxable income.
- Partnerships: Financial partnerships can benefit by purchasing a portion of eligible flow-through shares issued by exploration companies. These shares are then sold to individual investors, who, in turn, can claim the available tax credits, adding another layer of financial benefits and distribution of risk.
- Exploration Companies: Mineral exploration companies gain access to essential capital by issuing flow-through shares and flow-through warrants, enabling them to fund their exploration activities effectively and sustainably.
Eligibility Criteria
Different categories of participants have varying eligibility criteria for taking part in the SMETC:
- Individual Investors: To be eligible, individuals (other than trusts) must be residents of Saskatchewan and should purchase eligible flow-through shares issued by approved mineral exploration companies. These shares must align with Section 66 of the federal Income Tax Act. Interested investors should consult a licensed securities dealer or broker for guidance on purchasing these shares.
- Partnerships: Financial partnerships looking to invest must ensure that the investments are broken down to individual investors, with tax credits issued based on the eligible flow-through exploration expenditures within Saskatchewan.
- Exploration Companies: Any mineral exploration company interested in issuing flow-through shares or warrants must apply to the Saskatchewan Ministry of Energy and Resources. If approved, the company will receive written permission to raise a specified amount of capital for their exploration activities within the province.
How to Apply
The application process for exploration companies involves several critical steps:
- Companies must submit a copy of the completed Canada Revenue Agency (CRA) Form T100A, titled "Flow-Through Share Information – Application for a Selling Instrument T100 Identification Number (SITIN)," along with all other related documents required by the CRA.
- A copy of the CRA approval letter containing the Selling Instrument T100 Identification Number (SITIN) or T100 Identification Number (TIN) must be provided.
- Companies must also submit a list of the Saskatchewan Disposition Number(s) where the mineral exploration is taking place.
- All these documents should be sent via email to metc@gov.sk.ca for the Ministry of Energy and Resources to review and approve the application.
Mandatory Reporting Requirements
Once a mineral exploration company secures approval and issues flow-through shares, they are required to follow stringent reporting protocols:
- Complete and file CRA Form T100B, which includes comprehensive details about the Flow-Through Shares (FTSs) and Flow-Through Warrants (FTWs) subscribed.
- Submit copies of all CRA forms T101A, T101B, T101C, and T101D, as sent to CRA.
All completed documents and forms must be filed with the Ministry of Energy and Resources through the designated email address metc@gov.sk.ca.
Further Information and Contact Details
For those seeking more detailed information about the program, direct inquiries can be made to metc@gov.sk.ca. Additionally, interested parties may contact Aaron Saufert, Director of Mineral Programs and Development, at 306-787-3377 or through email at Aaron.Saufert@gov.sk.ca.
The SMETC stands as a robust initiative that not only supports investors through substantial tax relief but also aligns itself with Saskatchewan's economic objectives. By facilitating capital flow into the mineral exploration sector, this program aims to ensure the sustainable and competitive development of the province's rich mineral resources.
This detailed overview should provide prospective investors, partnerships, and exploration companies with a comprehensive understanding of how to navigate and benefit from the Saskatchewan Mineral Exploration Tax Credit program.
