GUINEA Law and Practice Contributed by: Kanto Andrianjakamanantsoa and Tiavina Rakotonaivo, John W Ffooks & Co
4. Taxation of Mining and Exploration 4.1 Mining and Exploration Duties, Royalties and Taxes On the one hand, holders of exploration permits are entitled, throughout the period of explora - tion, to exemption from: • value added tax (VAT) on imports of equip - ment, materials, machines and consumables before the beginning of the exploration phase; • the annual minimum tax; • the business licence fee; • contributions to professional training; To benefit from the foregoing exemptions, a mining list must be filed before the start of the exploration phase, in accordance with the provisions of the Mining Code. The duration of these exemptions is limited to the duration of the exploration phase, and all other provisions of the General Tax Code in the Republic of Guinea apply with full effect. It also worth noting that holders of an exploration permit are subject to the statutory reporting obligations set out in the General Tax Code. On the other hand, holders of a mining exploita - tion title who enter into the exploitation phase are eligible – for three years from the date of first commercial production – to exemption from: • the annual minimum tax; and • the single land tax. • the single tax land; and • the apprenticeship tax. During the exploitation phase, the holders of an exploitation permit are subject to all taxes other than those for which they benefit from the
exemptions provided for in the foregoing, includ - ing but not limited to: • VAT, excluding on the import of some equip - ment provided in the mining list in accord - ance with the provisions of the Mining Code; • the tax on industrial and commercial profits or corporate tax; • the tax on income from securities; • registration dues on deeds relating to compa - ny formation, increasing share capital through new capital contributions, capital contribu - tions, the capitalisation of profits or reserves, or mergers; • lump-sum salary payments; • withholding on non-salary income; • withholding on salaries; • the single automobile tax, with the exception of industrial vehicles and equipment at the rate in effect; • contributions to professional training or the apprenticeship tax, as the case may be; • contributions to local development; • fixed fees and annual royalties; • surface royalties; • tax on the extraction of mineral substances other than precious metals; • tax on the industrial or semi-industrial pro - duction of precious metals; • the export tax on mineral substances other than precious metals; and • the export tax on precious stones and gem - stones. In addition, the holders of an exploitation title are subject to the payment of environmental taxes and royalties on classified establishments, in accordance with the Environmental Code and its implementing regulations.
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