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- The tax rate is 25% (12.5% for mining companies in the first ten years of activity).
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Tax calculated on taxable profits includes donations, provisions (except provision for rehabilitation of mines), unrealized exchange losses and special tax on expatriate salaries, but excludes, dividends, royalties and rental revenue, which are taxed at a different rate.
- RECOMMENDATIONS FOR DRC EITI
- RECOMMENDATIONS FOR REPORTING COMPANIES
- Box 1. The role of government and civil society in using and improving PtG reports
- 2. Overview of payments in the DRC’s mining sector
- EITI contextual report 2018-19 (2019), p. 58.
- STEP 3. IDENTIFYING WHO SHOULD REPORT WHAT
- 4. Strengthening PtG reports
- Taxes
- AUTHORS
In coordination with reporting companies, develop a DRC-specific reporting template that fulfils PtG and EITI reporting requirements and captures the specific fiscal and parafiscal revenues. In preparing the EITI scoping report, use PtG reports to identify payments and recipient entities that exceed the materiality threshold of EITI reporting. Use ...
Compare the PtG reporting framework, in particular the naming of payment types and recipient government entities, to EITI reporting templates and other companies’ reports from the DRC. Annex I of this report and data from resourceprojects.org can serve as a starting point for identifying relevant payment streams. Ensure PtG reports disclose payment...
EITI data has been critical for oversight actors to monitor extractive sector payments. CSOs have monitored payments by comparing EITI data against fiscal terms found in laws and contracts, as referenced in the mini case studies presented in this report. For example, the Carter Center supported CSOs to conduct case study analyses of payments contri...
This section presents an overview of payments reported through the EITI and PtG reports.
Figure 2 shows payments to SOEs disaggregated by type. Most of them are parafiscal, i.e. not governed by the mining code. Revenue from equity sales and pas-de-porte (signature bonuses), which form the majority of payments, are one-off in nature and related to SOEs’ sales of equity shares to private investors. Royalties payable to SOEs (different fr...
According to the EITI secretariat’s guidance for defining project level reporting, “in arrangements which involve multiple parties it might be necessary to identify what kind of payments are effectuated by the different parties to the contract. It might also be necessary to look at the payments effectuated by different companies or received by diff...
PtG regulations in the EU, Canada and Norway are necessarily broad and adaptable to be fit for purpose as a reporting template for mining, oil and gas companies reporting on payments for extractive activities in all countries of operation. As described in the previous section, the seven broad categories have been useful in surfacing certain payment...
EITI reporting in the DRC separates three categories under profit taxes: corporate income tax, withholding tax (on dividends and on services by non-resident service providers) and ordinary and extraordinary taxes on income and profits. In addition, there are other taxes payable by natural resource companies. In contrast, PTG reporting only includes...
Kaisa Toroskainen is a consultant and formerly Africa program oficer with the Natural Resource Governance Institute (NRGI). Jean Pierre Okenda is DRC country manager and Alexander Malden is a governance oficer with NRGI.
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Recent estimates by the USGS suggest that the DRC produced 55% of the world’s cobalt in 2012, and boasts around 3.4 million tonnes in reserves. Tenke, the DRC’s largest miner of cobalt in 2012, produced 11,669 metric tonnes of cobalt according to Lundin Mining Corp., who owns 24% of Tenke.
This rapid review provides a summary of the evidence on the taxation and public financial management of mining revenues in the Democratic Republic of Congo (DRC).
Sep 27, 2007 · The 2018 Mining Code (Article 242) stipulates that shares of mining royalties (“redevances minières”) are to be paid directly by mining companies as follows: 25% to the provincial authorities; 15% to the decentralised territorial entity which hosts the extractive project;
The tax and customs regime applicable to DRC mining companies is exhaustively set forth in the 2018 amendments of the Mining Code. The main taxes levied on mining companies include surface taxes and rights, corporate income taxes, royalties, taxes on dividends and interest rates, and taxes on wages. Tax on salaries. Personal tax on salary.
Sep 19, 2018 · Based on data from 2010 and 2011, one study found the Congolese state exerted around a 13 percent tax rate over the sector—well below the 46 percent tax rate considered reasonable for the DRC by the World Bank.
