Value added tax (VAT) was introduced in Guinea in 1996 (Act L/95/035/CTRN of 30 June 1995). Taxable transactions are subject to a single rate of 18%, except for international exports and transport, which benefit from the zero rate. The Finance Act, 2016, attempted to raise the full rate to 20% (Act L/2016/001/AN of 18 January 2016), but the Finance Act, 2017, cancelled this measure (Act L/2016/066/AN of 19 December 2016). Holders of mineral rights are exempt from VAT on their imports of equipment, materials, machinery and consumables included on the approved mining list (Act L/2011/006/CNT of 9 September 2011 amended by Act L/2013/053/CNT of 8 April 2013).
Holders of mineral rights on Gabonese territory are now liable to a surveillance fee. It was introduced by section 12 of the Finance Act, 2018 (Act No. 021/2017 of 26 January 2018). It amounts to 50 CFA Francs per hectare for holders of prospecting licences and 300 CFA Francs per hectare for holders of mining licences and mining concessions. It is due annually, in addition to the ground fee set by section 279 of the Mining Act (Act No. 017/2014 of 30 January 2015). It has to be paid before June 31 of each year to the accounting officer of the Geospatial Agency.
Updated tax data for 2017 and 2018 are now available for Cameroon, Republic of the Congo and Democratic Republic of the Congo (DRC).
Cameroon has adopted a new Mining Act (Act No. 2016/017 of 14 December 2016). The Republic of the Congo has not changed its mining taxation (Act No. 33-2016 of 31 December 2016 and Act No. 41-2017 of 29 December 2017). The DRC has in-depth reformed its Mining Act (Act No. 007/2002 of 11 July 2002 as amended by Act No. 18/001 of 9 March 2018).
The Democratic Republic of Congo (DRC) has in-depth reformed its Mining Act (Act No. 007/2002 of 11 July 2002 as amended by Act No. 18/001 of 9 March 2018). This reform increases on the one hand the mining royalty for precious metals whose rate goes from 2.5% to 3.5% and on the other hand the participation required by the State in the capital of the operating company which goes from 5% to 10% minimum. As a result, these measures increase the tax burden on gold mining companies. For a representative medium grade mine (3g/t) and a gold price of $1250/oz, the average effective tax rate (AETR) increases from 41% to 46%.
Cameroon has adopted a new Mining Act (Act No. 2016/017 of 14 December 2016). It reduces the ad valorem royalty rate for precious metals to 5%, whereas it was raised to 15% by the Finance Act, 2015 (Act No. 2014/026 of 23 December 2014). This new Mining Act therefore significantly reduces the tax burden applicable to gold mining companies. For a representative medium grade mine (3g/t) and a gold price of $1250/oz, the average effective tax rate (AETR) drops from 67% to 53%.