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PearTree is pleased to share that as a direct result of our advocacy in Saskatchewan, the newly enhanced Saskatchewan Mineral Exploration Tax Credit (SMETC) regulations have been amended to allow for greater global investment in the province.
In the Saskatchewan 2023 Budget, the government increased the SMETC from 10% to 30% in order to make the province more competitive with British Columbia, Manitoba, Ontario and Quebec. Saskatchewan is home to 23 of Canada’s 31 critical minerals, including world class potash and uranium deposits. The credit was announced “as harmonized with the 15% federal Mineral Exploration Tax Credit (METC) and the 30% Critical Mineral Exploration Tax Credit (CMETC)”.
In May, PearTree wrote to Saskatchewan’s Minister of Energy and Resources, the Honourable Jim Reiter, outlining an issue with the legislation that would prevent significant global investment. In short, the legislation only allowed for companies incorporated in Canada to access the SMETC. However, merely incorporating in Canada does not remedy the policy concern of foreign ownership and the requirement was not in line with other provincial or federal regulations, thus putting Saskatchewan at a competitive disadvantage for global investment. PearTree recommended that the Canadian incorporation requirement be removed in order to allow for greater exploration in Saskatchewan and increased competitiveness.
PearTree was pleased to receive a letter from the Minister thanking PearTree for raising the above technical concern, and noting the new amendment. Retroactive to January 1, 2023 the Government of Saskatchewan approved amendments to the Mineral Exploration Tax Credit Regulations, expanding the eligibility of the SMETC to allow for foreign based companies to use the program to raise capital for mineral exploration and allowing Saskatchewan investors in foreign-based corporations conducting mineral exploration activities in Saskatchewan to qualify for the SMETC.
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