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%.
The legal and tax database is expanding to its first Portuguese-speaking country: Angola.
In Angola, the Mining Act in force dates from 2011 (Law No. 31/11 of 23 September 2011). Gold is considered a strategic mineral. The mining royalty rate for this precious metal is 5%. The corporate income tax rate, set at 30% for other companies, is reduced to 25% for mining companies. From the Angolan tax system, it is possible to estimate the overall tax burden on a mining company. For a representative mine with an average grade (3g/t) and a gold price set at $1250/oz, the average effective tax rate (AETR) calculated is 58%.