In response to the rapidly changing economic environment, the mining sector has recently seen fluctuating commodity demand, price corrections and a number of governments amending their policies relating to the taxation of resources. Given the complex layers of local and federal taxation systems imposed on mining companies, ranging from resource royalties, mining taxes, corporate tax, indirect taxes, and exploration and R&D concessions, it is important to build taxation into a mining organization’s overall business strategy and planning, including from a compliance and risk perspective.
KPMG’s global mining network of tax professionals assists mining companies right across the organization at all levels of planning and strategy, including:
Tax strategy and policy: Developing global and country specific tax strategies to plan for current and future tax costs and to contribute to tax policy development with governments.
Tax structuring for transactions and new projects: Optimizing the acquisition, holding and funding structure from a tax perspective and obtaining a deep understanding of the tax regimes of new countries. Optimizing tax concessions and obtaining certainty of tax rates, resource royalties and tax rules applicable over the project life.
Tax compliance: Readiness for tax audits and other enquiries from Revenue Authorities and ongoing management of tax obligations and risks, including transfer pricing, employee taxes and resource taxation.
Tax transparency: Reporting taxes paid to governments such as the Extractive Industries Transparency Initiative and other regulations.
KPMG’s thought leadership provides mining sector participants with insight into these business challenges and issues, enabling them to make better decisions faster.