Internal Revenue Service Resolutions - Mining

Three Internal Revenue Resolutions on the mining sector were published in Official Registry Supplement No. 202 on March 16, 2018. The resolutions include:

I. Rules regulating costs that are part of the tax basis for calculating royalties on mining of nonmetallic minerals (Resolution NAC-DGERCGC18-00000103):

• These rules are applicable to holders of small, medium and large scale nonmetallic mining rights in the exploitation stage. Mining exploitation is understood as the set of mining operations, work and tasks for the preparation and development of the deposit and the extraction and transport of minerals, within the perimeter of the concession.
• The accounting systems and procedures used must be compatible with this resolution and allow the financial statements to serve as the basis for filing tax declarations. The financial statements will be used for computing mining royalties and tax obligations.