Kyrgyzstan introduces tax on income of mining enterprises working with precious and base metals
BISHKEK. April 4 (Interfax) - Kyrgyzstan is introducing a tax on the income of mining and processing enterprises that sell ore and concentrate containing precious and base metals.
Kyrgyz President Sadyr Japarov signed the corresponding amendments to tax legislation.
The tax base is the value of metals in ore and concentrate according to world prices set on the London Metal Exchange.
The tax rate on gold ore and gold concentrate will be upwards of 11% at a gold price of $1,300 per troy ounce, then it will increase by 1% if the price rises by $100. The maximum rate is 30% at a price of over $2,500 per ounce. For gold alloy and refined gold, the tax rate will be 1-20% with a similar breakdown according to the price of the metal.
The tax rate for ore and concentrate containing silver is 8% at a price of up to $10 per troy ounce. Then it also rises by 1% when the price rises by $100 to a maximum of 21% when the price is over $71. For finished products (silver), the tax rate will be 3-16% with a similar breakdown according to the price of the metal.
For ore and concentrate containing copper, the tax rate will be a minimum of 8% at a price per tonne of metal of up to $7,000, increasing by 1% if the price rises by $1,000 to a maximum of 21% at a price of more than $19,000. The tax will be 3-16% for the finished product.
For ore and concentrate containing antimony, a tax rate of 8% is set at a price for 1 tonne of metal up to $7,000, then it will increase by 1% if the price rises by $1,000 and to 21% if the price exceeds $19,000. For antimony, the tax rate will be 3-16%.
For ore and concentrate containing mercury, as well as for finished products, the tax rate will be 1% at a price of up to $10 per kilogram of mercury. Then it increases by 0.5% for every $5 rise in price. The maximum rate is 8% for 1 kg of mercury costing upwards of $71.
For ore and concentrate containing tin, and finished products, the tax rate is 1% at a price of up to $10,000 per tonne. It rises by 2% when the price goes up $4,000 to a maximum of 20% if tin on the international exchange costs more than $58,000.
For ore and concentrate containing tungsten and for finished products the tax rate is set at 3% if the price of a tonne of tungsten is up to $20,000. Then there will be an increase of 1% for increase in price by $5,000. The maximum rate will be 16% if the price of the metal is over $80,000.
If an investment agreement concluded with the government establishes norms that are not stipulated by Kyrgyzstan's tax legislation (with the exception of new taxes), the terms of the investment agreement will apply.
Oil refining, chemical and petrochemical enterprises are exempt from paying VAT on goods imported as fixed assets.
The law comes into effect on the day of its publication.