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That's from the 2019 Latam Investor doc. None of this is new. So we have 25% Corporation Tax (although LATAM 2019 states 22%), plus 12% Sales Tax, plus 5-8% royalty. Then there's that 5% tax on funds withdrawn from the country, but it's not applicable to dividends, so there's a workaround there (keep everything in country except the dividends).
There's a 12% Sales Tax - that must be the "profit sharing".
ShoddyQuady, we're busy tonight with some CARP that Schlem posted. Otherwise, I'd be fascinated to hear all about your opinion of Quady.
Then there's the 5% tax on funds leaving Ecuador, but does not apply to dividends. So, that takes it up to a notional 50%, given in the article. There's a workaround with the divis and I think SOLG can get the lower end of the royalties, being a minnow? So, that's 42% - pretty standard.
DBW,evening don't rise to it my friend
ffs... it's you again...you need some professional help
So what's going on there then? Is it "Latin American Herald Tribune" posting an article that is a carbon copy of the one issued in 2009? Is it Schlem playing photo shop with the dates to further his agenda? Slightly confused.
Anyone got a comment on my 18:39? Are the gov entitled to 12% profit sharing, 25% tax and 5-8% royalty (Total of 42-45%)? The tax sounds right and so does the royalty. Never heard of the profit-sharing before but hey ho. Much better than the old 70% Windfall Tax.
Much as I don’t want to agree and cause more problems on here
If right wing opinions are disgusting the surely so are left wing ones
All lives matter to say otherwise is divisive at best Someone has to stop the likes of Quady coming on here and spouting their political agenda whilst trying to silence all opposing views .... keep it to Solg or shut the **** up
Thats why he lives on the ggp board these days ,says some good things though but this just now is left to be desired imho
Agreed FTJNY, and that fact when he has a few drinks, he posts the most disgusting right wing propaganda.
Q - Schlemiel is really scraping the bottom of the barrel with this latest attempt to sow seeds of doubt in the vain hope he can get back in lower if the SP retreats! So transparent which is a shame as when he was invested he came up with some good articles which were in the main positive but occasionally negative if he had found something he was genuinely worried about! Now he just posts negative stuff to try and feather his own nest! Sad and disingenuous!
Let's face it, as a mining company you'd be over the moon if you're only paying 35% to the gov (say 30% corporation tax, 5% royalties). Mali, where HUM operates, you have to give 15% to the gov and then not sure what tax is - 25%? So that's 40% right there. South Africa is similar I think. You get the idea.
The giveaway was the citing of President Rafael Correa! He left office more than 4 years ago lol ;)
Well done, allthatguff, Schlemiel will do anything to try and depress this share, to get back in.
The newspaper article is dated 11/10/2020, but is a rerun of the article posted in 2009.
A lot has happened since.
OLD NEWS FROM 2009..
see same article
Tuesday, November 17, 2009
Ecuador Says New Regulations Will Foster Responsible Mining
4.1 Duties, Royalties and Taxes
The main rule originating in the Constitution is that the benefit of the State shall always be higher than the benefit of the operating company.
The benefit of the State is mainly formed of 12% of profit-sharing, 25% of income tax, royalties and VAT, if applicable. It is important to note that community support or generation of employment is not treated as a benefit for purposes of satisfying the constitutional rule.
The benefit of the operating company is the total amount of sales minus amortisation of investments in accordance with applicable accounting rules, minus all operating costs (it is important to note that contributions to community development are not tax deductible), minus all amounts payed in royalties between 5% to 8% on large-scale mining projects, minus 12% profit-sharing currently being paid to the central government and minus 25% of income tax.
There is no different treatment for national or foreign investors. While a tax of 5% applies to all transference of fund from Ecuador to abroad, it is exempted for dividends.
Well if this gives clarity then maybe it will help the SP tomorrow
It's 50% of earnings though how 'earnings' (net profit after all costs?) are calculated one must ask SOLG or delve into the legislation but nonetheless this looks like a decent foundation on which Ecuador mining can now move forward...
Not new news - the new mining law was passed 22nd January 2020.
Does this explain the drop. 50% to the government
QUITO – Ecuador’s new mining regulations, which among other things give the government a 50 percent participation in companies’ operations, will set the country on a path toward “responsible mining development,” a top official said Thursday.
In statements to Radio Sonorama, Non-Renewable Natural Resources Minister Germanico Pinto commented on the executive orders that were issued Wednesday and which serve to enact new mining regulations contained in a law passed in January.
Referring to criticism from environmentalists and Indians about the supposed threats to the environment and indigenous communities, Pinto acknowledged that some aspects of the law could be improved and said the government is “absolutely open” to dialogue.
However, he said the executive orders signed by President Rafael Correa highlight the “virtues of the law regarding the management, government control and citizen supervision” of initiatives to develop Ecuador’s reserves of gold, silver, copper and iridium.
In addition to a decree enacting a general law for the industry, Correa also signed executive orders implementing laws on the development of small-scale mining and environmental regulations for the operations, as well as several documents enabling the creation of the ENM national mining company.
The president also decreed the creation of other regulatory agencies and an institute for geological, mining and metallurgy research.
The mining law stipulates, among other aspects, that only the central government is empowered to approve multinational companies’ bids for mining projects and that 50 percent of the earnings from mining projects must be handed over the government.
In addition, under the new regulations, mining companies must present complete technical and environmental-impact studies before embarking on extractive activities and employ clean, cutting-edge technology.
As the regulations are applied, “serious problems with mining in Ecuador will be corrected,” including environmental pollution and the lack of oversight and training and of government monitoring of development projects, Pinto said.
He added that “not only will the problems be corrected, but we’ll turn the page: it’s a turning point for the development of responsible mining” in the environmental and social sense.
Pinto denied that the government has already given the green light to international mining companies to carry out development projects and stressed that, for the moment, “only advanced exploratory activity” is being carried out.
“What we did through the mining mandate (a degree issued last year halting large-scale mining in the country) is to verify that companies are complying with the law and legal requirements,” Pinto said. EFE
Ahh EricEric those were the 2-4p days and we’ve had many a clown since and why we have the filter button too.A safer gamble to eat your hat than lose a house (Your better half will happily bake a hat for the comedy value i’am sure ?).Yes £1.80 and I’ll have a few cans of white lightning cider with that hat to celebrate retirement....in the meantime tick rock have a lovely evening all us l.t.h ‘rs.
Hi Italian, may I ask what percentage for the offer you are using at PEA, PFS and DFS.
Colonel, I did not dilute, those numbers are based on current issuance, which is the only known number we have.
Wasn't ericeric always rolling his eyes !? Couldn't be could it ? :D
hi smallacorns, I'm certainly hoping Santa delivers a big fat buyout for shareholders this year @ £1.80p
But failing that an announcement of a Joint Venture or Farm-out. We really need something tasty to get the juices flowing here : oo-er !
Come on Mr Mather, make our Christmas a good one !!!
(Going back to your question, a poster on the UKOG bb recently said they'd give their house away if the SP fell below 0.15p - and guess what happened - so always a dangerous game eating hats lol ).