X

Map Disclaimer

Information in this screening tool is provided for informational purposes only and does not constitute legal or scientific advice or service. The World Bank makes no warranties or representations, express or implied as to the accuracy or reliability of this tool or the data contained therein. A user of this tool should seek qualified expert for specific diagnosis and analysis of a particular project. Any use thereof or reliance thereon is at the sole and independent discretion and responsibility of the user. No conclusions or inferences drawn from the tool or relating to any aspect of any of the maps shown on the tool, should be attributed to the World Bank, its Board of Executive Directors, its Management, or any of its member countries.

The boundaries, colors, denominations, and other information shown on any map the tool do not imply any judgment or endorsement on the part of the World Bank concerning the delimitation or the legal status of any territory or boundaries. In no event will the World Bank be liable for any form of damage arising from the application or misapplication of the tool, any maps, or any associated materials.

Part C: Fiscal Terms - 36. Fiscal Terms | 36.10 Exemption from Other Fees

Countries may choose to exempt mining companies from certain fees, for various reasons (see discussion on customs duties, VAT). One basis for exemption may be to avoid undue burden to companies during the exploration phase and facilitate movement to discovery (see the example below on exemption from payment of fees related to export of samples for testing).

As with cautions under the discussion on tax holidays, exemptions from these fees should be used transparently, in accordance with provisions in law and are best standardized across the mining industry to facilitate administration.

36.10. Example 1:

Article [_]

(1) Holders of exploration permits are entitled throughout the period of exploration, to an exemption from:

(a) TVA or Value Added Tax (VAT) on imports of equipment, materials, machines and consumables indicated in the mining list submitted, before the beginning of the Exploration Phase, on condition that such mining list has been approved in compliance with provisions of [relevant article] of this [Code][Act][Law]. However, imports of goods which are excluded from the right of deduction pursuant to the provisions of the [General Tax Code] are not exempt from VAT, even when these goods were included in the duly approved mining list.

(b)Annual Minimum Tax (IMF);

(c) business license fee;

(d) Contribution to vocational training;

(e) Single Land Tax (CFU);

(f) Apprenticeship tax.

(2) The advantage bestowed by the regime for exemption is subject to the filing, before the start of the exploration phase, of a mining list for the Exploration Phase, in compliance with the provisions of [relevant article] of this [Code][Act][Law].

(3) All other provisions of the General Tax Code apply with full effect.

(4) Petrol, lubricants and other imported petroleum products are entitled to a VAT reimbursement, within the limits of annual quotas fixed by the [Budget Regulating Authority].

(5) The duration of these exemptions is limited to the duration of the exploration phase.

Article [_] Customs duties

(1) Holders of an exploration permit are eligible for the temporary admission regime for the importation of equipment, material, machines, raw materials and consumables indicated in the mining list relating to the exploration phase.

(2) The temporary admission of these goods is only permitted if the said mining list has been filed, before the start of the exploration phase, and has been duly approved in accordance with the provisions of [relevant article] of this [Code][Act][Law].

(3) However, materials and spare parts for utility vehicles, necessary for the functioning of professional materials and equipment included in the mining list are not eligible for the exemption:

(a) from the [Regulating Authority] Processing Fee;

(b) from the Registration Tax;

(c) from the Community Tax (PC);

(d) from the Additional Surcharges

Annotation

Drawn from Guinea’s mining code (2011), this provision provides exemption from several payments during the exploration phase only. The exemptions are meant to relieve some of the fiscal burden on companies during a period of high upfront expenditure and no revenues. Nevertheless, companies are still required to pay the administrative taxes listed.

36.10. Example 2:

Article [_]

As part of the project, where the holder exports samples for industrial tests and analyses, this shall be exempt from all customs duties or any other contribution, of any kind whatsoever, when it leaves the national territory. Notwithstanding the provisions of Article [_] of the present [Code][Act][Law] (on exceptions for exporting samples), samples exported in violation of this Article in the present [Code][Act][Law] shall be subject to all relevant standard taxation.

Annotation

Drawn from DRC’s mining code (2002), this provision provides an exemption from fees for exports under certain circumstances – in this case fees and duties associated with the export of minerals extracted for testing/analysis. Again, this exemption is aimed at minimizing additional financial burden during the exploration phase.