Taxation of mining industries

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Update 2019: Congo, Mali and Mauritania

2020-07-07

Updated tax data for 2019 are now available for Congo, Mali and Mauritania.
In the Republic of the Congo, mining taxation has not changed (Act No. 40-2018 of 28 December 2018). In Mali, a new Mining Act has been adopted (Ordinance No. 2019-022/P-RM of 27 September 2019). However, since its entry into force dates from the end of 2019, it will not appear in the database until 2020. In Mauritania, a new General Tax Code has been adopted (Act No. 2019-018 of 29 April 2019). The rate of corporate minimum tax has been reduced to 2%. The value added tax rate has been increased to 20% for petroleum products.

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Mauritanian corporate minimum tax: the rate decreases

2020-07-06

In Mauritania, the corporate minimum tax has been modified by the new General Tax Code (Section 51 of Act No. 2019-018 of 29 April 2019). Since 2009, the minimum tax was set at 2.5% of turnover. Since 2019, this rate is now reduced to 2% of taxable revenue for large companies. In addition, the minimum amount is increased to 100,000 ougouiya. However, the applicable rate remains fixed at 2.5% of taxable revenue for medium-size companies.

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Mauritanian value added tax: the standard rate applies to petroleum products

2020-07-05

In Mauritania, the value added tax (VAT) was introduced in 1995. The standard rate is now set at 16%, instead of 14% before 2015. Since 2010, however, petroleum products and telephony have been subject to an increased rate of 18%. In 2019, the new General Tax Code first attempted to increase this rate to 20% for petroleum products (Act No. 2019-018 of 29 April 2019). However, the Finance Act, 2020, finally reduced the rate for petroleum products to the standard rate of 16% (Act No. 2020-001 of 10 January 2020). Henceforth, only telephony is still subject to the increased rate of 18%.

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Update 2019: Burkina Faso, DRC and Niger

2020-06-19

Updated tax data for 2019 are now available for Burkina Faso, the Democratic Republic of the Congo and Niger.
In Burkina Faso, mining taxation has not changed (Act No. 042/2018/AN of 18 December 2018). In the Democratic Republic of the Congo, the normal rate of corporate income tax was reduced to 30% (Finance Act No. 18/025 of 13 December 2018) and a new order setting the rates of duties, taxes and royalties to be collected at the initiative of the Ministry of Mines was issued (Inter-ministerial Order No. 0001/CAB.MIN/MINES/01/2019 and No. CAB/MIN/FINANCES/2019/009 of 22 February 2019). In Niger, the derogatory tax measures present in the sectoral laws were brought together in the tax code by the Finance Act, 2019 (Act No. 2018-79 of 17 December 2018).

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Nigerien Finance Act: Gathering of sectoral provisions in the tax code

2020-06-18

In Niger, section 11 of the Finance Act, 2019 (Act No. 2018-79 of 17 December 2018) creates a Title VIII in the First Book of the General Tax Code (Act No. 2012-37 of 20 June 2012). This Title VIII aims to bring together in the tax code all the derogatory tax provisions present in the sector laws: Investment Act (Act No. 2014-09 of 16 April 2014), Petroleum Act (Act No. 2017-63 of 14 August 2017), Mining Act (Ordinance n°93-16 of 2 March 1993), derogatory advantages for investments in major mining projects (Act No. 2008-30 of 3 July 2008), etc. A similar approach was taken in Senegal in 2012 with the introduction of a new general tax code (Act No. 2012-31 of 31 December 2012 and Act No. 2012-32 of 31 December 2012).

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