The Government of Yukon spends more per capita than any other Canadian jurisdiction on direct financial incentives for exploration in the mining industry. The Government of Yukon also dedicates a percentage of its total budget to direct exploration incentive and actively promotes its abundant mineral wealth to world markets. This support extends to Yukon’s untapped oil and gas reserves that boast an estimated 17 trillion cubic feet of natural gas and 700 million barrels of oil.
Small enterprise ventures continue to exist in many forms and provide a solid supplement to the economy. Yukon’s economy includes over 3,000 registered businesses, which translates into roughly one business per 10 Yukoners. The highly entrepreneurial economy is filled with independent business owners and often larger industries that have numerous smaller active operators, such as, specialized construction companies, independent exploration companies and placer mines.
Yukon boasts an extensive network of all-season roads and a robust airport system. It has a sole cable-delivered broadband network that provides high-speed internet to Yukon communities, mobile access and a telecommunications delivery system that ensures online access to the majority of Yukoners. Consequently, Yukon businesses are able to effectively connect with partners around the globe.
Yukon has a modern economy grown from its traditional roots and though mining and tourism remain traditional economic pillars of Yukon, a number of emerging sectors are fuelling the growth in Yukon’s economy. Long-known for rich natural resources and well-developed infrastructure in the North, Yukon is increasingly recognized as an entrepreneurial, developmental, and innovation hot spot.
- Real GDP growth of 1.3% to almost $2.3 billion, marking the tenth consecutive annual increase.
- No governmental debt, no territorial sales tax and a very competitive tax regime.
- Some of the lowest personal income tax rates in Canada and competitive corporate income tax rates.
- Government spends a higher percentage of its annual budget on capital projects than any other Canadian jurisdiction.
- Abundant and diverse energy resources including fossil fuel reserves, numerous lakes and rivers, windy and mountainous terrain, broad forest cover and sunny conditions.
- Significant resources of gold, silver, copper, tungsten, nickel and coal as well as one of the world’s largest iron ore deposits and one of the world’s largest undeveloped lead-zinc district.
- More than 4,800 km of all-weather roads and easy access to two ice-free ports closer to Asia than British Columbia.
- Yukon has one of the strongest performing labour markets in Canada.
- Young workforce — almost 60% of the working population under the age of 45, slightly higher than the Canadian average.
- One of the highest ratios of university degree holders in Canada, as well as a high rate of school completion and trade certification.
- Workforce is skilled in natural resource industries with expertise in working in remote, cold-climate conditions.
The Government of Yukon encourages investment in the territory and strives to create a favourable investment environment. Some of these business incentives are:
Yukon Venture Loan Guarantee ProgramAdministered through Business Development Bank of Canada and chartered banks, YG may guarantee 65% of loans approved by chartered banks for new Yukon business start-ups and for certain expansions of businesses which have or are projected to have less than $5m in gross revenues and less than 100 employees.
Yukon Small Business Investment Tax Credit (YSBITC)The YSBITC permits eligible investors to claim 25%of their investment in an eligible Yukon company as a credit on their individual income tax returns. The credit is calculated at 25%of the value of an investment. Investors are permitted to claim a credit to a maximum of $25,000 per year.
Strategic Industries Development Fund (SIDF)SIDF is designed to help support strategic development projects and the growth of Yukon’s key industries (Film and Sound, Innovation and Technology, Mining, Oil and Gas, Forestry and Tourism and Culture) through subsidizing up to 50% of eligible costs for approved projects.
- For more information about available financing programs, visit Invest Yukon or Funding and Programs. Yukon’s businesses have worked to make Yukon investment-ready and the Yukon government has invested in the people and the economy. This cooperation of industry and government has matured into a number of Yukon advantages that have leveraged the territory into a strong position, well-prepared for new challenges and new development.
- Mining & Exploration
- Film & Sound Production
- Innovation & Technology
- Oil & Gas
- Small-Medium Enterprise