Fiscal Regimes

Guides


1. Mineral royalties and other mining-specific taxes compiled by Pietro Guj (International Mining for Development Centre) in 2012

This paper provides a review of mineral royalties and other special taxes which apply specifically to the mining sector in mineral-rich countries, with emphasis on current arrangements in Australia.

2. The Tax Treatment of the Mining Sector: An IMF Perspective produced by Emil M. Sunley and Thomas Baunsgaard in 2001

This documents provides guidance on the different types of taxes that can be used to build an effective taxation system in mining. Finally, it present the IMF perspective on mining taxation regimes and how it might differ from development banks.

3. Oyu Tolgoi Model and Narrative Report compiled by Open Oil

This page contains both the Oyu Tolgoi Project Fiscal Model (Excel Sheet) and the accompanying narrative report. The report sets out our analysis of the huge Oyu Tolgoi mining project in Mongolia, based entirely on public sources, and mainly on a 2014 Technical Report published by Turquoise Hill Resources, a subsidiary of Rio Tinto. It provides detailed information on the government revenue structure of this project.

4. Capturing the benefits of a transfer of mineral rights - scenarios to capture by contract/legislation/regulation and issues to consider produced by the Columbia Center on Sustainable Investment 

Against the backdrop of highly profitable deals concluded between companies transferring project shares, CCSI has researched the challenges of imposing a Capital Gains Tax. The attached note outlines some scenarios by which direct and indirect transfers of project shares may take place, to serve as a broad checklist in designing regulations for a capital gains tax to capture these scenarios.

5. Open Fiscal Models (Website) hosted by the Columbia Center on Sustainable Investment

This website provides links to two different model calculations (excel) on fiscal models in natural gas and gold extraction as well as to a webinar in managing LNG value chains.

6. Fiscal Regimes for Extractive Industries: Design and Implementation produced by the International Monetary Fund in 2012

This paper underpins the recent IMF approach to resource revenue taxation in its technical assistance portfolios, based on maximizing revenue generation. It contains useful illustrations and benchmarks of average effective tax rates.

7. Fiscal Analysis of Resource Industries (FARI) Methodology produced by Oana Luca and Diego Mesa Puyo

This manual introduces key concepts used by the Fiscal Affairs Department (FAD) in its fiscal analysis of resource industries (FARI) framework. The FARI framework has been primarily used in FAD’s advisory work on fiscal regime design. In parallel to that, FARI has also evolved into a revenue forecasting tool, allowing IMF economists and government officials to estimate the composition and timing of expected revenue streams from the EI sector, and better integrate the EI sector in the country macroeconomic frameworks. The model presents a useful tool for revenue administration practitioners, allowing them to compare actual, realised revenues with model results in tax gap analysis.