MALI Law and Practice Contributed by: Felana Ranaivoson and Tiavina Rakotonaivo, John W Ffooks & Co
4. Taxation of Mining and Exploration 4.1 Mining and Exploration Duties, Royalties and Taxes Research permit holders must pay an annual surface fee. They are exempt from all value added tax. Companies engaging in exploration and mining are subject to the following taxes, inter alia: • housing tax; • social security contributions and charges payable by employees; • tax on insurance contracts; • registration fees; • contribution to the import verification programme; and • stamp duty in case of intention to export mining products. Furthermore, a mining company with an operating licence that produces more than 30% of the quantity specified in the feasibility study production schedule must pay an overproduction fee. Mineral products are subject to a special tax on certain products ( impôt spécial sur certains produits ) and ad valorem tax. The taxable base of special tax on certain products is tax- free turnover whereas that of the ad valorem tax is the valued production. 4.2 Tax Incentives for Mining Investors and Projects Operating licence holders benefit from a reduction in the rate of tax on industrial and commercial profits tax, or corporate tax, to 25% over a period of three years, starting from the date of first commercial production. 4.3 Transfer Tax and Capital Gains on the Sale of Mining Projects The transfer or sale of a mining project is subject to capital gains in Mali. 5. Mining Investment and Finance 5.1 Attracting Investment for Mining Mali provides attractive fiscal incentives, including exemptions during exploration phases.
• The Mining Code ensures fiscal and customs sta - bility for investors. • The developing mining infrastructure (eg, construc - tion of a road corridor between Bamako and Dakar in the south (completed), San-Pédro and Bamako (in progress) and Bamako and Zantiebougou (in progress)) and partnerships with institutions like the World Bank (eg, Programme de Gouvernance du Secteur Minier (PGSM)) enhance Mali’s appeal. The government also emphasises transparency and legal security to reassure investors, including via Initia- tive pour la Transparence dans les Industries Extrac- tives (ITIE). 5.2 Foreign Investment Restrictions and Approvals in the Exploration and Mining Sectors There are no restrictions on foreign investment in the exploration and mining sectors in Mali. However, Mali has specific rules for foreign invest - ment in the mining sector. Mining activity relating to substances subject to the mining regime is authorised by virtue of a mining title. The mining titles provided for in the Mining Code include: • exploration authorisation; • exploration permits; • artisanal mining permits; • small-scale mining permits; and • large-scale mining permits. While the sector is open to foreign investment, there are some legal requirements, such as compliance with environmental requirements and contributions to local development. The initial legal requirements include compliance with environmental standards, such as conducting an EIA before any exploration or mining project. Mining companies must also develop a site rehabilitation plan after mining activities. Also, mining companies must partner with local entities or support the training of the Malian workforce. Regard - ing local development, investors are required to fund community projects, such as building infrastructure or supporting education and healthcare. Finally, they are
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