On August 10, Act 21.591 on Mining Royalty was published in the Official Gazette. The Act establishes the creation of a new Mining Royalty in Chile, which replaces the current Specific Tax on Mining.
The Act has several key aspects, including:
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- The creation of two new taxable components:
a. An ad valorem tax of 1% on annual copper sales greater than or equal to 50,000 metric tons of fine copper (TMCF).
b. A progressive rate based on mining operational margin or annual sales applied on taxable mining operating income.
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- The New Royalty replaces the Specific Tax of Article 64 bis of the Income Act, which established a progressive rate according to annual sales applicable on the taxable mining operational income. The main difference is the incorporation of the aforementioned Ad valorem component.
- Mining companies with… Read more
