resource tax tagged posts

Zambia Drops Cancels Hike to Mining Taxes

March 26, 2015 Taxation in Zambia

Mine in ZambiaLUSAKA – Mine operators in Zambia will soon have a temporary reprieve from a recent tax hike, as the government looks for more amicable solution to balance the need for tax revenues and the interest of the mining sector.

On March 25th the President of Zambia Edgar Lungu announced that the government will drop the recently implemented hikes to mineral royalty taxes, following months of negotiations and protest from mineral extractors operating in the country.

Late last year the government announced that mining companies would no longer be required to pay income taxes, however, the measure would be replaced with a hike in royalties, with the rate for open-cast mines rising from 6 percent to 20 percent, and the rate for underground mines rising from 6 percent to 8 percent.

However, the ris...

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Canada Extends Mining Tax Credit

March 2, 2015 Taxation in Canada

OTTAWA – The government of Canada has extended a critical tax break, which has been dubbed the “lifeblood” of the mineral exploration industry.

The tax credits currently available to investors into Canadian companies involved in mineral exploration will be extended for another year, now set to expire on March 31st 2016, according to information detailed by the Minister of Finance of Canada Joe Oliver in a speech over the weekend.

Currently, investors in junior mineral exploration companies, which are involved in only in assessment of potential mining sites, are eligible for a 15 percent tax credit.

The tax credit was initially intended to provide incentive to potential investors to provide extra funding to companies exploring potential new mining sites, and the evident success of the sche...

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Zimbabwe Enacts Platinum Export Tax

February 3, 2015 Taxation in Zimbabwe

HARARE – Platinum exporters in Zimbabwe may be forced to pay an export tax unless they agree to build refineries in the country.

Earlier this week the Finance Minister of Zimbabwe Patrick Chinamasa announced that the currently proposed tax on the export of unrefined platinum will be implemented this year, despite earlier promises to delay the implementation for another two years.

The tax, which is planned to be charged at a rate of 15 percent, was initially proposed in 2013, and was intended to be a means of encouraging platinum extractors to refine the metal in Zimbabwe, instead of exporting the metal in its raw state.

In November last year the government announced that the tax would be delayed until January, as the Finance Minister was under the impression that exporters operating in t...

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Indonesia Dropping tax on Oil Exploration

January 17, 2015 Taxation in Indonesia

JAKARTA – The government of Indonesia is hoping to boost the national production of oil by as much as 12.5 percent, and is dropping taxes faced by companies exploring for oil and gas in the country.

On January 16th the Finance Ministry of Indonesia issued a statement proclaiming that effectively from January 1st businesses operating in the oil and gas industry will no longer need to pay land tax, if the business is only in the exploration phase of operations.

According to Wahju Tumakaka, a spokesperson for the Finance Ministry, the previous interpretation of the tax was land, as the land taxes “…is supposed to be applied for those using Indonesian land”, and the exploration should not be qualified as the use of land.

Previously the tax was levied at a rate of 0...

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Zimbabwe Eyes Tax Breaks for Diamonds

November 10, 2014 Taxation in Zimbabwe

HARARE – Zimbabwe is looking to create a strong national industry for diamond cutters and polishers by using a targeted tax break.

Late last week at a conference held in Harare the Mines and Mining Development Minister of Zimbabwe Walter Chidhakwa indicated that early next year the government could drop some of the taxes levied on diamonds mined in Zimbabwe and exported out of the country.

The tax cut will be offered to manufacturers for diamonds that are extracted in Zimbabwe and sent to be cut and polished in the country, before being exported overseas.

The move is aimed at fostering the growth of a local diamond processing sector, and the Minister specifically stated that while the tax cut will lead to a reduction in tax collections, it will also result in higher levels of employment, ...

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