Flow-Through Shares
Canada Canada

Flow-Through Shares are a tax advantaged investment in the Canadian natural resource sector initiated by the Government as an incentive for Canadian investors to put money into one of this country’s most important resource industries.

Flow-through shares are essentially common shares of an issuer which permit the initial purchaser to claim a deduction up to the amount of the share subscription price against any income in respect of resource expenses.

There are two types of flow-through share investments:

100% deduction write-offs for exploration (net of federal and provincial credits)

As above, plus an additional 15% federal tax credits for grassroots exploration

…plus provincial and territorial deductions and tax credits in certain provinces.
(Excerpt from PDAC brochure)

Income tax benefits to individuals will vary, depending on the taxpayer’s jurisdiction of residence and marginal tax rate for income tax purposes.

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