Arctic Yearbook 2014 | Page 206

206 Arctic Yearbook 2014 In spite of being low by global standards, mining and oil taxation in the NWT - at approximately 26.5% - is similar to the Canadian average. In the NWT, both mines and oil wells pay out royalties according to a sliding scale based on how profitable an operation is. For mines, the first $10,000 is royalty free. Beyond that, the first $5 million in profits pays a rate of five per cent, which increases by one per cent per $5 million in profits. The top rate companies can be expected to pay is 14 percent for any mine that clears more than $45 million per year. These rates are higher than those seen in Alberta (Alberta operates at a rate of 10% provincial tax), but lower than rates used in ea