Ontario resource tax credit
As of April 23, 2015, to harmonize with the federal government and other provinces, the Ontario resource tax credit and the additional tax on Crown royalties are eliminated and replaced with a deduction for royalties and mining taxes paid. You can carry forward unexpired unused Ontario resource tax credits for the first five tax years starting after April 23, 2015. The credit and the tax are calculated on a prorated basis for tax years that include April 23, 2015.
The Ontario resource tax credit and the Ontario additional tax re Crown royalties were based on the corporation's:
- notional resource allowance for the year, as determined in subsection 7(3) of Ontario Regulation 37/09 to the Taxation Act, 2007 (Ontario)
- adjusted Crown royalties for the year, as defined in subsection 36(2) of the Taxation Act, 2007 (Ontario)
- Ontario allocation factor, as defined in subsection 1(1) of the Taxation Act, 2007 (Ontario)
The Ontario resource tax credit is used to offset Ontario corporate income tax otherwise payable.
Claiming the credit
To claim an unused credit, complete Schedule 504, Ontario Resource Tax Credit, and file it with your return.
For more information on the tax credit, see the schedule and section 37 of the Taxation Act, 2007 (Ontario).
On line 404 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the amount of the credit you are claiming.
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