Taxation of mining industries

News

Update 2019 : Cote d'Ivoire, South Africa and Zimbabwe

2020-02-18

Updated tax data for 2019 are now available for Cote d'Ivoire, South Africa and Zimbabwe.
In Cote d'Ivoire, the five-year tax holiday from which mining companies benefited in terms of corporate income tax and minimum tax has been repealed (Ordinance No. 2018-144 of 14 February 2018). In South Africa, mining taxation has not changed. In Zimbabwe, the mining royalty rate now varies according to the price of gold (Act No. 7 of 2019).

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Ivorian corporate income tax: end of tax holiday

2020-02-17

In Cote d'Ivoire, the tax holiday granted to mining companies was repealed in 2018 (section 1 of Ordinance No. 2018-144 of 14 February 2018). The Mining Act granted holders of mining rights an exemption from corporate income tax and a minimum tax for the first five years following the date of first commercial production (section 169 of Act No. 2014-138 of 24 March 2014). Exceptionally, however, mining rights granted in 2018 benefited from a 75% tax abatement in the first year and 50% in the second year following the date of first commercial production (section 3 of Ordinance No. 2018-144 of 14 February 2018).

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Zimbawean mining royalty: rates change

2020-02-16

In Zimbabwe, gold mining royalty rates were amended by the Finance (No. 2) Act, 2019 (No. 7 of 2019). For small-scale gold producers, the rate increases from 1% to 2%. For other gold producers, the rate was 5%, except in the case of an increase in annual production. Now the rate depends on the selling price of the ore. It is set at 3% when the selling price is below 1200$/oz and 5% when the selling price is above 1200$/oz.

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Update 2019 : Cameroon, Chad and Ghana

2020-01-21

Updated tax data for 2019 are now available for Cameroon, Chad and Ghana.
In Cameroon, the Finance Act 2019 did not change mining taxation (Act No. 2018/022 of 11 December 2018). Similarly, in Ghana, there were no changes to mining taxation in 2019. In Chad, the minimum tax was raised from 1 to 2 million CFA francs for large companies (Act No. 037/PR/2018 of 31 December 2018).

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Chadian minimum tax: increase of the minimum amount

2020-01-20

The minimum tax is a minimum for the collection of corporate income tax. In Chad, it is fixed at 1.5% of company turnover. However, this minimum tax is accompanied by a minimum amount for companies with low turnover. This amount was amended by the Finance Act, 2019 (section 11 of Act No. 037/PR/2018 of 31 December 2018). The floor amount of the minimum tax increases to 2 million CFA francs for large companies, while it remains at 1 million CFA francs for small companies.

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