Mining is undergoing intense growth worldwide. Rising prices and rising demand from developing countries are igniting an investment boom, accelerating consolidation, and encouraging new, more global business models. Tax incentives for research, development and exploration are becoming so substantial, they can now make the difference between a viable or non-viable project.
Global mining companies must manage taxation on an international scale. Vertical integration of processes can give reason to carry out mining operations in one country, processing in a second country and marketing operations in a third. Our member firms have the global reach and the industry knowledge needed to advise global clients in multiple locations. We can help your mining company design, develop and manage efficient international tax planning strategies to face almost any global tax challenge.
For companies in the oil and gas sector, our firms understand the vital importance of the remitability of profits. We recognize the growing tax management challenge associated with the geographical mismatch between cash-generating and cash-consuming territories. We realize the need to protect intellectual property in the form of brands, processes and technical know-how.
Most importantly, our firms understand how resource extraction taxes and regulations shape the environment for strategy formulation and active portfolio management—both of which are critical for turning assets into cash in mature regions to finance new development elsewhere.
The power and utilities industry ― electricity generation, electricity and gas transmission and distribution, renewable energy sources and the water industry ― is one of the most tightly regulated and closely scrutinized sectors. As international consolidation spreads through this sector, global approaches to tax management are crucial. The industry is also at the center of worldwide debates about climate change, nuclear power and alternative energy.
In the years ahead, we expect the worlds governments make ever more use of tax incentives and penalties to encourage more sustainable energy use, creating ongoing challenges for companies in the industry.
ENR Industry Issues & Solutions