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Guide to oil and gas taxation in Canada

Guide to oil and gas taxation in Canada

An overview of the Canadian legislation and tax principles for the oil and gas industry.

torran a jolly

Partner, Tax

KPMG in Canada


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Guide to oil and gas taxation in Canada

KPMG has authored a Canadian oil and gas taxation guide to help businesses that participate or invest in oil and gas activities to help them understand the Canadian tax regime and how it applies to such activities in Canada and abroad. Stay current on the latest regulatory and tax changes in the industry that may impact your oil and gas business in the coming year.

Highlights of this updated 2018 edition include:

  • Industry overview – As a leader in oil and gas production, the demand for Canadian resources is expected to increase as existing reserves elsewhere in the world deplete.
  • Canadian tax regime – New investors in the Canadian oil and gas industry will be interested to learn about the tax regimen in the Canadian oil and gas industry. Taxes imposed by any particular government are crucial to the viability of an oil and gas project. Canada’s tax environment is favourable to business, and especially to oil and gas activities.
  • Structuring oil and gas investments – A key decision for investors in the industry is what structures to use for holding resource properties, for carrying out exploration and development activities, and for conducting oil and gas operations. We provide insights on some tax-planning strategies that might be considered by Canadian residents and non-residents in structuring their oil and gas investments.
  • Provincial royalties – Oil and gas operations and natural resources in Canada are owned by the provinces, and are subject to provincial royalty regulations. Uncover the details on the range of regulatory levies and taxes commissioned by each provincial jurisdiction.
  • Other federal and provincial tax regimes – Resource development activities in Canada may be subject to other federal and provincial taxes, in addition to the taxes on income. This version brings forward changes to these additional taxes which include value-added and sales taxes, customs duties, and land transfer taxes or registration fees.
  • Carbon levy in Canada - Currently British Columbia and Alberta have implemented carbon tax regimes that impact the consumption of fossil fuels. This version of the publication includes relevant updates to carbon levy tax regimes in Canada.

This publication summarizes the Canadian legislation and tax principles relevant to the oil and gas industry current to September 30, 2017, but in some cases are updated to January 1, 2018.

KPMG in Canada works with oil and gas exploration and production companies of all sizes to respond to business issues and trends. Our advisers can help you understand the many areas of taxation and can advise you on a wide spectrum of tax concerns that may impact you.

We have a diverse group of professionals who can provide guidance on many areas from basic tax compliance to more complex areas such as M&A, International, US Corporate, Transfer Pricing, Scientific Research and Experimental Development (SR&ED), Indirect and Dispute Resolution. Additionally, KPMG Law is an affiliated law firm that may assist with legal matters in relation to taxation.

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