2014年-世界发展银行全球_Comparative_Study_of_the_Mining_Tax_Regime_for_Mineral_Exploitation_in_Kazakhstan_102页_1mb

Summary of the Comparative Study of the Mining Tax Regime in Kazakhstan

Core Content

This report, conducted by Oxford Policy Management for the World Bank and the Government of Kazakhstan, presents a comparative analysis of Kazakhstan's mining tax regime against international best practices and global trends. The goal is to identify elements of the current system that may deter foreign investment and suggest reforms to improve competitiveness.

Main Objectives

• To assess the current mineral fiscal regime in Kazakhstan.
• To compare it with twelve other countries and global trends.
• To recommend changes that align the regime with international standards and promote investment and economic growth.

Key Findings

Characteristics of the Mining Industry

The mining industry is characterized by:

• High risk and long lead times to production.
• Capital intensity and finite project life.
• Operation in remote areas with significant environmental and social impacts.
• Cyclical price fluctuations and the need for tax stability.

These characteristics require a fiscal regime that is:

• Stable and predictable.
• Transparent and easy to understand.
• Designed to balance government revenue with investor returns.
• Supportive of economic diversification and growth.

Revenue Distribution

The four main beneficiaries of mining project revenues are:

• Suppliers (around 55%)
• Government (around 17-18%)
• Investors (around 17-18%)
• Employees (around 10%)

The split between government and investors is influenced by the level of taxation. A fair balance is essential for attracting investment.

Fiscal Considerations

The report highlights several key fiscal considerations:

• Stability: A stable fiscal framework is crucial for project viability. Many countries have introduced fiscal stability provisions.
• Government Share: A typical government share is around 50% of pre-tax cash flow. This varies from 28% in Sweden to 64% in Ghana.
• Investor IRR: Minimum IRR for new projects is around 17%, which is challenging for some countries to meet, especially with current commodity prices.
• Tax Package: The overall tax package, rather than individual taxes, determines the IRR for investors. A well-designed regime ensures a win-win for both government and investors.

Types of Taxes

The main taxes include:

• Corporate Income Tax (CIT): Usually 20% of taxable income. Modern rules include accelerated depreciation and thin capitalisation rules.
• Mineral Royalties: Vary by mineral type. Common types are gross production, gross revenue, net smelter return (NSR), and net profits royalty (NPI).
• Windfall Profit Tax (EPT): Not aligned with international norms and can deter investment by reducing returns.
• VAT, Import/Export Duty, Withholding Taxes, and Social Taxes: These are in line with international standards.

Fiscal Incentives

Common fiscal incentives include:

• Accelerated Depreciation and Amortisation: Reduces profit tax liability early in production.
• Duty-Free Treatment of Inputs: Aims to lower investment costs but can lead to resource misallocation if not carefully managed.

Non-Tax Benefits

The mining industry contributes to the economy beyond tax revenue:

• Employment: Generates both direct and indirect jobs.
• Backward and Forward Linkages: Encourages local sourcing and downstream processing.
• Skills Development: Enhances general skills levels in the workforce.

Institutional and Legislative Framework

Kazakhstan's mining legislation (Law No. 291 on Sub-Soil and Sub-Soil Use) combines solid minerals and hydrocarbons under one law, which is not common internationally. The Tax Code governs most taxes, including:

• Corporate Income Tax
• Mineral Production Tax (Royalty)
• Excess Profits Tax
• Signature Bonuses
• Commercial Discovery Bonuses

The law is detailed but unclear and contradictory, with an English translation that is inadequate for foreign investors. The system for granting mineral rights is transitioning from auctions to a first-come, first-served licensing model, which may not be suitable for exploration.

Exploration and Geological Information

Access to geological information is currently restricted, with companies only receiving full data after signing a contract and making large payments. This contrasts with best practices where information is freely available and of high quality.

Social and Environmental Investment

Some countries require social investment, while others leave it to investors. Social investments have increased since the 1990s, with companies investing in infrastructure, education, health care, and local business development.

R&D and Innovation

R&D requirements are uncommon in mining legislation, though companies may support local research institutions if they exist.

Recommendations

• Simplify and clarify the subsoil law to improve transparency and attract foreign investment.
• Align mineral taxation with international standards, particularly by revising the Excess Profits Tax.
• Reduce royalty rates to improve investor returns, especially for uranium.
• Implement a more stable and predictable fiscal regime.
• Enhance access to geological information to support exploration.
• Consider the use of fiscal incentives that do not negatively impact government revenue.
• Evaluate the need for local content requirements in the context of WTO compliance.