Guide to oil and gas taxation in Canada | KPMG | CA

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.


Partner, Tax

KPMG in Canada


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Guide to oil and gas taxation in Canada

KPMG’s Guide to oil and gas taxation in Canada intends to help businesses that participate or invest in the oil and gas industry 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 that may impact your oil and gas business in the coming year.

Highlights of KPMG’s Guide to oil and gas taxation in Canada

  • Industry overview – Canada is a leading producer of oil and gas worldwide. The demand for Canada’s petroleum resources is expected to increase as existing reserves elsewhere in the world decline.
  • Canadian tax regime – 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, including oil and gas activities.
  • Deductions, allowances, and credits – Provincial statutes provide a number of deductions, allowances, and credits that are specifically available to taxpayers engaged in qualifying 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 highlights 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 subject to provincial royalty regulations. Uncover the details on the range of regulatory levies and taxes commissioned in 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. These additional taxes include value-added and sales taxes, customs duties, and land transfer taxes or registration fees.
  • Carbon pricing in Canada – Carbon pricing is steadily evolving with legislation in Alberta and British Columbia.


This publication summarizes the Canadian legislation and tax principles relevant to the oil and gas industry current to September 30, 2016.


How KPMG’s Oil & Gas industry team can help
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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