Taxes - Copperbelt Katanga Mining

Indebted Zambia pays $400m in VAT refunds to mining firms

January 14, 2021 admin

Zambia paid 8.5 billion kwacha ($400 million) in value-added tax refunds to mining companies last year, the head of the tax authority said on Wednesday, equal to about 3.5% of the external debt that the southern African country is struggling to repay. Zambia, Africa’s second-largest copper producer, is negotiating with creditors to try to get debt relief, after it defaulted on a $42.5 million coupon in November. The economy was already struggling even before the coronavirus pandemic owing to low prices for copper, its main export, and the IMF had classified it… Read More Here

Mining in Zambia Taxes

High royalties and tax payout for Kansanshi, Kalumbila

December 15, 2020December 15, 2020 admin

The latest Zambia Extractive Industry Transparency Initiative (ZEITI) report has indicated that First Quantum Minerals (FQM) contributed the majority of government revenue generated from the extractive sector in 2019. According to the report, the mining giant’s two subsidiaries – Kansanshi Mining Plc and Kalumbila Minerals Ltd, contributed K5.7 billion and K2.6 billion respectively, representing 31 percent and 14.4 percent of total payments in the year. FQM’s total contribution of K9,347 billion – which includes K973.65 million from First Quantum Mining and Operations – represented 51 percent of the K18.4 billion… Read More Here

Mining in DRC Taxes

DRC recovered USD 482 million in the first half of 2020 on taxes for mining production

November 19, 2020November 19, 2020 admin

The DRC Ministry of Mines collected 482 million 111,023.22 USD in the first half of 2020 as direct and indicts taxes, customs duties and state revenues and participation from the mining industry in the Democratic Republic of the Congo, according to statistics officials of this ministry. During the first half of 2020, the same Ministry of Mines indicates that 789,793 tons of metal copper and 38,816 tons of cobalt were sold by the mining industry of the Democratic Republic of Congo of which 761,230 tons and 37,990 tons were exported.… Read More Here

Mining in Zambia Taxes

Zambian State Assures Mines of Stable tax

November 16, 2020November 16, 2020 admin

THE mining sector has been assured by Government of stable tax measures to improve its operations. Minister of Mines and Minerals Development Richard Musukwa said there will be no surprises for the mining sector’s tax measures because Government wants to be consistent. The minister said this yesterday when Zambia Chamber of Mines chief executive officer Sokwani Chilembo met him at his office. “Government is ready to listen to the industry and create a win-win situation. Some measures we have put in place are meant to seal loopholes of illegal vices… Read More Here

Mining in DRC Taxes

Money for Development Consortium calls on DRC government to efficiently manage royalty taxes paid to Provincial administrations

October 16, 2020October 16, 2020 admin

The Makuta ya Maendeleo Consortium (Money for Development) invites the government of the Democratic Republic of Congo to initiate inclusive consultations with all stakeholders in order to define a coherent national policy for the collection, distribution and allocation of funds from 25 % and 15% of the mining royalty paid to Provinces and Decentralized Territorial Entities (ETD) for the financing of sustainable development projects in provinces and mining areas. Since the second half of 2018, several mining provinces and ETDs have directly received the quotas of 25% and 15% of… Read More Here

Mining in Zambia Copper Taxes

Zambian royalty spat halts $2bn of copper mine investment

September 30, 2020September 30, 2020 admin

Copper miners in Zambia have halted $2-billion of planned investments because a royalty tax introduced last year makes the projects unviable, according to an industry lobby group. A plan by First Quantum Minerals to invest $1-billion extending the life of its Kansanshi operation won’t proceed until the royalty is scrapped, said Sokwani Chilembo, chief executive officer of the Zambia Chamber of Mines. The same goes for EMR Capital-backed Lubambe Copper Mine’s project to invest a similar amount in a new mining operation, he said. “We need this royalty payment regime removed for… Read More Here

Mining in Zambia Taxes

Zambia chamber of mines says double taxation hurting investment

September 29, 2020September 29, 2020 admin

Zambia should treat mineral royalty payments as a deductible expense in order to avoid double taxation and attract investment, the Zambia Chamber of Mines said on Monday. Since 2019, mineral royalty payments have not been treated as a deductible expense when calculating corporate income tax and that provision was kept unchanged in the government’s annual budget unveiled on Friday. “The effect of this is that mining companies end up being taxed on income that has already been paid over as a royalty – a situation referred to as double taxation,”… Read More Here

Mining in DRC Mining tax Taxes

DRC government opts for a “reverse charge accounting VAT” for miners

September 14, 2020September 14, 2020 arnbethnic

The Council of Ministers of Friday, September 11 lifted the option, with regard to mining companies, for a “ reverse charge accounting VAT” on imports. Henceforth therefore, the import VAT of the miners will just be recorded at the customs level without the operators being able to pay it. “Regarding the suspension of the collection of import VAT, the government is proposing a switch to an accounting VAT for reverse charge. The mechanism would allow mining companies to no longer pay VAT to Customs but to indicate it on their tax declarations, ”said… Read More Here

Mining in DRC Taxes

DRC government plans to ID all foreign workers in the country

August 31, 2020August 31, 2020 arnbethnic

The Minister of Employment, Labor and Social Welfare, Néné Nkulu Ilunga, says she has found that the hiring of foreign workers in several Congolese companies is in violation of the legal and regulatory provisions in force. She informed members of the government on Friday August 28 during the 46th meeting of the Council of Ministers, considering that it was “necessary” to proceed with the identification of foreigners to remedy this problem. After debate and deliberation, the file was adopted subject to the application of legal provisions regarding the financing of the… Read More Here

Mining tax Economy Mining in Zambia Taxes

Zambia Chamber of Mines reiterates their position on MRT

August 24, 2020August 24, 2020 arnbethnic

After the Zambia Revenue Authority Commissioner-General Kingsley Chanda said the Chamber of Mines should not alarm the nation by issuing false statements on Mineral Royalty Tax. The Chamber of Mines says it will stand by what it earlier stated that the Mineral Royalty Tax dropped by 12 percent and not the six percent announced by the Zambia Revenue Authority. Responding to a press query, Chamber president Goodwell Mateyo said the chamber stood by its position. “I believe the Commissioner-General was referring to a report produced by the Chamber of Mines.… Read More Here