Colombia’s Mining Fiscal Regime: H1 2014

The Ministry of Mines and Energy regulates mining activities in accordance with laws issued by the Government. The Mining Code (Law 685) issued in 2001 is the main law for the mining industry in Colombia. Its main objective is to promote the public interest regarding the technical exploration and exploitation of mineral resources, both of state and private property.

Scope

The report outlines Colombia’s governing bodies, law, mining concessions and key fiscal terms which includes Royalty, Surface Fee, Corporate Income Tax, Capital Gain Tax, Corporate Income Tax for Equality (CREE), Depreciation, Withholding Tax, Loss Carry Forward, Value Added Tax, VAT.

Key Highlights

• El Ministerio de Minas y Energía (The Ministry of Mines and Energy) regulates mining activities according to the laws issued by the Government. The Ministry has assigned several mining-related powers to national and departmental authorities.

• The Colombian Geological Service is an entity under the Ministry of Mines and Energy responsible to conduct research in respect of subsoil resources to evaluate their potential.

• The Mining Code (Law 685) issued in 2001 is the main law for mining industry in Colombia. Its main objective is to promote public interest technical exploration and exploitation of mineral resources of state and private property.

•According to Código de Minas (The Mining code) passed in 2001, the rights to explore and exploit mining reserves would be granted through a Concession Agreement for a period of 30 years.

Reasons to buy

Gain an overview of Colombia's mining fiscal regime.

Companies mentioned

Table of Contents

1 Executive Summary 1

2 The Colombian Mining Industry – Governing Bodies 5

2.1 Ministry of Mines and Energy 5

2.1.1 Colombian Geological Service 5

3 The Colombian Mining Industry – Governing Law and Mining Concession 6

3.1 Mining Code (Law 685) 6

3.2 Mining Concession 6

3.2.1 Concession Agreement 6

3.2.2 Obligations 6

3.2.3 Termination and Cancellation of Rights 7

4 The Colombian Mining Industry – Key Fiscal Terms 8

4.1 Royalty 8

4.2 Surface Fee 8

4.2.1 Exploration 8

4.2.2 Construction 8

4.3 Corporate Income Tax (CIT) 9

4.4 Capital Gains Tax (CGT) 9

4.5 Corporate Income Tax for Equality (CREE) 9

4.6 Depreciation 9

4.7 Withholding Taxes 9

4.8 Loss Carry Forward 9

4.9 Value Added Tax (VAT) 9

5 Appendix 10

5.1 What is this Report About? 10

5.2 Methodology 10

5.3 Secondary Research 10

5.4 Primary Research 11

5.5 Contact GlobalData 11

5.6 About GlobalData 11

5.7 GlobalData’s Services 12

5.8 Disclaimer 13

List of Tables

Table 1: The Mining Industry in Colombia – Fiscal Regime Terms and Other Taxes 1

Table 2: The Mining Industry in Colombia – Royalty Rate (%), 2014 8

Table 3: The Mining Industry in Colombia – Depreciation Years, 2014 9

Table 4: The Mining Industry in Colombia – Withholding Tax (%), 2014 9

List of Figures

Figure 1: The Mining Industry in Colombia – Commodity Mines at Different Stages (Number of mines), 2014 1

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