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5. Fiscal RegimeThe Yukon government is committed to developing a competitive oil and gas fiscal regime. In designing it, the government is mindful that Yukon is a resource-rich frontier with challenging high-cost investment opportunities. The principal source of revenue will be from royalties. Other sources of revenue will be rental payments, cash bonus bids, forfeited work commitment deposits and administrative and licensing fees. Corporate income tax, and municipal and rural property tax revenue will also be generated. Yukon is developing its royalty regulations and is planning to adopt an ad valorem royalty system. The proposed base oil and gas royalty is 10 per cent, with increases to a maximum rate in accordance with a price sensitive formula. A five per cent royalty rate is proposed for an initial period of production.
Rentals for oil and gas dispositions are indicated in the Call for Bids and set contractually in the disposition. To date, rentals have been set at zero for the initial term of permits issued as a result of the sale. In the second term of the permits rentals are $5/hectare.
The following fees are charged applicants seeking to acquire or transfer Yukon oil and gas activity licenses:
Corporate Tax Yukon collects corporate taxes at the following rates:
*tax exemption available if approved for fuel used off-road for commercial purposes Contact Information For more information, or to submit comments and suggestions on this section, contact: John Masterson – Director, Oil and Gas Management Branch
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Last Updated 07-09-2005