Form T2 Schedule 421 British Columbia Mining Exploration Tax Credit (2019 and Later Tax Year) - Canada

Form T2 Schedule 421 is used for claiming the British Columbia Mining ExplorationTax Credit in Canada. It applies to the 2019 and later tax years and allows businesses engaged in mining exploration activities in British Columbia to claim a tax credit for eligible expenditures.

The British Columbia Mining Exploration Tax Credit (Form T2 Schedule 421) is filed by corporations engaged in mining exploration activities in the province of British Columbia, Canada.

FAQ

Q: What is Form T2 Schedule 421?
A: Form T2 Schedule 421 is a tax form in Canada that is used to claim the British Columbia Mining Exploration Tax Credit.

Q: What is the purpose of the British Columbia Mining Exploration Tax Credit?
A: The purpose of the British Columbia Mining Exploration Tax Credit is to encourage investment in mineral exploration activities in British Columbia.

Q: Who is eligible to claim the British Columbia Mining Exploration Tax Credit?
A: Mining companies that incur eligible mining exploration expenses in British Columbia are eligible to claim the tax credit.

Q: What are eligible mining exploration expenses?
A: Eligible mining exploration expenses include expenses incurred for determining the existence, location, extent, or quality of a mineral resource or for bringing a new mine into production.

Q: How much is the tax credit?
A: The tax credit is equal to 20% of eligible mining exploration expenses.

Q: Can the tax credit be carried forward or back?
A: Yes, any unused tax credit can be carried forward for 10 years or carried back 3 years to reduce taxes payable in those years.

Q: What is the deadline to file Form T2 Schedule 421?
A: The deadline to file Form T2 Schedule 421 is the same as the deadline for filing the corporate income tax return, which is typically within 6 months after the end of the taxation year.