In the Democratic Republic of the Congo, corporate income tax is levied on the profits of legal entities and individuals. Its rate was set at 35% since 2012 (Section 1 of Ordinance-Act No. 004/2012 of 21 September 2012 amending Section 83 of Ordinance-Act No. 69/009 of 10 February 1969). It was reduced to 30% by the Finance Act, 2019 (Section 17 of the Finance Act No. 18/025 of 13 December 2018). However, this reduction does not affect mining companies that already benefited from the 30% rate in the Mining Act (Section 9 of Act No. 18/001 of 9 March 2018 amending Section 247 of Act No. 007/2002 of 11 July 2002).
In the Democratic Republic of the Congo, a new inter-ministerial order of the Ministry of Mines and the Ministry of Finance was issued in 2019 to set the rates of duties, taxes and royalties to be collected at the initiative of the Ministry of Mines (Inter-ministerial Order No. 0001/CAB.MIN/MINES/01/2019 and No. CAB/MIN/FINANCES/2019/009 of 22 February 2019). This order includes in particular the new ad valorem mining royalty rates that had been modified by the reform of the Mining Act in 2018 (Act No. 18/001 of 9 March 2018). They have increased from 0.5% to 1% for ferrous metals, from 2% to 3.5% for non-ferrous metals, from 2.5% to 3.5% for precious metals and from 4% to 6% for precious stones.
Updated tax data for 2019 are now available for Gabon, Madagascar and Senegal.
In Gabon, a new mining act came into force in 2019 (Act No. 037/2018 of 11 June 2019). However, it has only slightly changed the tax system applicable to holders of large-scale mining licenses. Taxation in Madagascar has not changed (Ordinance No. 2018-001 of 26 December 2018). In Senegal, mining taxation has also not been amended (Act No. 2018-029 of 19 December 2018).
Gabon adopted a new mining act in 2019 (Act No. 037/2018 of 11 June 2019). However, the tax system applicable to holders of large-scale mining licenses has changed very little. The mining royalty rate remains fixed in the mining agreement. For precious substances, this rate must always be between 5% and 8%. The corporate income tax rate indicated in the mining act corresponds to the standard rate of 30%. However, the finance act, 2019, reiterates the higher rate of 35% for the mining sector. These measures therefore do not change 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) remains fixed at 46%.