Saskatchewan Mineral Exploration Tax Credit (SMETC)
Saskatchewan residents can invest in mineral exploration activities within the province by purchasing eligible flow-through shares issued by approved mineral exploration companies under the Saskatchewan Mineral Exploration Tax Credit (SMETC) program. The tax credit is 45 per cent to 60 per cent (30 per cent provincial and 15 per cent to 30 per cent federal).
Mineral exploration companies who utilize the SMETC are able to raise capital from investors via flow-through shares and flow-through warrants in order to fund their exploration activities.
Offered by Ministry of Energy and Resources
Amount
Tax credit of 45 per cent to 60 per cent (30 per cent provincial and 15 per cent to 30 per cent federal)
Quick eligibility check
Who can apply
Individual Investors
Individuals, other than trusts, may purchase eligible flow-through shares (in accordance with section 66 of the federal Income Tax Act) from an approved mineral exploration company.
Partnerships
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.
Exploration Companies
Any mineral exploration company wishing to issue flow-through shares or flow-through warrants and take advantage of the tax credit 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.
About the funding
The tax credit is 45 per cent to 60 per cent (30 per cent provincial and 15 per cent to 30 per cent federal).
Flow-through shares allow mineral exploration companies to renounce or "flow through" tax expenses associated with their Saskatchewan exploration activities to investors, who can deduct the expenses in calculating their own taxable income.
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