Energy, Mines, and Resources
Oil and Gas Resources
Fiscal Regime
The 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:
| Geophysical Licence | $500 |
| Geochemical Licence | $300 |
| Geological Licence | $300 |
| Test Hole Licence | $500 |
| Well Licence | $500 |
| Pipeline Licence | $500 |
| Transfer of Licence | $200 |
| Gas Processing Plant Licence | $500 |
| Gas Export Licence | $500 |
| Other Licences | $300 |
Yukon collects corporate taxes at the following rates:
| General corporate tax | 15 per cent |
| Small business corporate tax | 4 per cent |
| Manufacturing and Processing tax | 2.5 per cent |
| Capital tax | none |
| Payroll tax | none |
| Fuel oil tax* | 6.2 cents per litre on gasoline |
| 7.2 cents per litre on diesel |
*tax exemption available if approved for fuel used off-road for commercial purposes
Contact:
For more information, or to submit comments and suggestions on this section, contact:
Phone: 867.667.3427
E-mail: oilandgas@gov.yk.ca
Northern Investment Opportunity Table of Contents
- Northern Investment Opportunity - Home Page
- Why invest in the Yukon?
- Roles and Responsibilities of Governments
- Legislative and Regulatory Framework
- Oil and Gas Rights
- Oil and Gas Activities
- Fiscal Regime
- Pipelines and Transportation Infrastructure
- Geology in the Yukon
- Oil and Gas Resource Assessments