Promise
Undertake a major mining sector policy reform including tax policy and administration reform
Promise History
First Quantum to pay ZCCM-IH in revenue royalty following Zambia tax change.
The government shifted its tax collection model from the dividend to the royalty method at Kansanshi Mine on its shares held by ZCCM-IH.
Minister of Finance proposes to widen the tax base
Minister of Finance proposes to widen the tax base by introducing property transfer tax (PTT) on the transfer of "mineral processing licenses" (i.e. a license which enables the holder to process minerals and cut, polish and manufacture jewellery) or "an interest in a mineral processing license"
Mining Audit report finalized and submitted
Mining Audit report on audit of the cadaster department finalized and handed over to President
The deductibility of interest is limited to 30% of a company's tax earnings
To prevent Multinational Enterprises (MNEs) from shifting profits out of Zambia by funding Zambian operations with high levels of debt so as to reduce taxable income, the deductibility of interest is limited to 30% of a company's tax earnings before interest, taxes, depreciation and amortisation (EBITDA)
Introduction of the deductibility of Mineral Royalty for corporate income tax assessment purposes
The deductibility of Mineral Royalty for corporate income tax assessment purposes has been introduced, to reduce the tax burden on mines.
Suspension of issuance of mining licenses
The government suspends the issuance of mining licences for 30 days and undertakes and audit of the Cadaster Department
The Opening Extractives Programme Launched
Zambia officially launched its participation in the Opening Extractives programme. The programme helps enable access to quality beneficial ownership data that strengthens accountability by improving governance of energy and mining revenues, supporting business and curtailing corruption and illicit financial flows
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