Incentives for the solid minerals sector
Fri, 12 Oct 2007 00:00
The following incentives are available in the solid minerals sector:
3 to 5 years tax holiday;
Low income tax of between 20% and 30%;
Deferred royalty payments depending on the magnitude of the investment and the strategic nature of the project;
Possible capitalisation of expenditure on exploration and surveys;
Extension of infrastructure such as roads and electricity to mining sites;
The holder of a mining lease shall, where qualified, be entitled to:
a) Depreciation or capital allowance of 75% of the certified true capital expenditure incurred in the year of investment and 50% in subsequent years
b) Investment allowance of 5%
c) Exemption from payment of customs and import duties
d) Expatriate quota and resident permit for approved expatriate personnel
In addition
to roll-over relief under the capital gains tax (CGT), companies replacing their plants and machinery are to enjoy a once-and-for-all 95% capital allowance in the first year with 5% retention value until the assets is disposed, 15% will be granted for replacement of an asset.
