GUINEA Law and Practice Contributed by: Kanto Andrianjakamanantsoa and Tiavina Rakotonaivo, John W Ffooks & Co
It is worth noting that there is no specific distinc - tion made between the taxation of national and foreign investors in the Republic of Guinea. 4.2 Tax Incentives for Mining Investors and Projects The stabilisation of the fiscal and customs regime is guaranteed to holders of mining exploitation titles who have signed a mining agreement. The maximum duration of the period of stabilisation is 15 years. This period of stabilisation runs from the date on which the mining exploitation title is granted. During this period, the rates of lev - ies, duties and taxes will neither be increased nor reduced. Instead, these rates will remain as they were on the date the mining title was granted. Furthermore, no new tax or levy of any kind whatsoever is applicable to the holder of a mining title during this specific period. 4.3 Transfer Tax and Capital Gains on the Sale of Mining Projects Any transfer of an exploitation permit, mining concession or authorisation to exploit quarry substances is subject to capital gains tax, in accordance with the provisions of the General Tax Code of the Republic of Guinea. The cal - culation basis for this capital gain is the differ - ence between the transfer price of the mining title or authorisation stipulated in the deed of transfer and the net book value of the mining title or authorisation. Any transfer of shares or other ownership inter - est of a legal entity holding a mining title or authorisation is taxed in accordance with the capital gains regime in the Republic of Guinea. The basis of assessment for capital gains on the sale of a share or corporate interests is the dif - ference between the sale price of the share and its net book value. It is worth noting that where the transferor is not established in Guinea, this
capital gain is taxed at source in Guinea at the standard rate of corporate income tax under the General Tax Code. The tax is deducted at source by the legal entity holding the mining title or authorisation. This withholding tax is payable when the capital gain is realised. Failure to pay the withholding tax due will result in the with - drawal of the mining title or authorisation. 5. Mining Investment and Finance 5.1 Attracting Investment for Mining The main features of attracting investment for mining in the Republic of Guinea are as follows. • The creation of the Centre de Promotion et de Développement Minier (CPDM), a one-stop shop offering comprehensive assistance to simplify the investment process. The CPDM facilitates investors’ access to essential infor - mation, encouraging responsible and sustain - able investment. Under the supervision of Guinea’s Ministry of Mines and Geology, the CPDM assists investors in preparing permit applications and completing administrative formalities. The CPDM also facilitates the acquisition of mining titles and authorisations. • The guarantee of systematic and transparent management of the mining sector, which will be advantageous for investors not to mention conferring sustainable economic and social benefits for the Guinean people. • Large reserves of bauxite, iron ore, diamonds and gold. 5.2 Foreign Investment Restrictions and Approvals in the Exploration and Mining Sectors There are no special rules on foreign investment approval in the Republic of Guinea. Moreover, there are no restrictions on foreign investment in
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