Why would anybody be dumb enough to want to do business in Indonesia. The Indonesian Government changes the rules whenever it suits them. Even if GMC has something in writing today it will be changed by tomorrow.
GMC might be better changing the shipping route of those secondhand smelters to SCORE Sarawak Malaysia.
Indonesian proposal would require miners to pay share of after-tax profit
Oct. 3, 2017 10:32 AM ET|By: Carl Surran, SA News Editor
Miners operating in Indonesia will have to pay a share of their after-tax profits to both the central and local governments under new tax rules under consideration for next year, Reuters reports, citing documents outlining the proposal.
Under the new rules, special mining permit holders would need to pay a levy on their after-tax profits of 4% to the central government and 6% to the regional governments where they operate.
Freeport McMoRan (FCX+0.3%), which operates the Grasberg copper mine in the eastern province of Papua, and other miners currently do not pay a share of profits to central or regional governments.
The proposed plan would set an income tax rate of 25%; FCX’s current contract, signed in 1991, sets an income tax rate of 35%, which was fixed higher in exchange for certainty that the government would not change the rate for the duration of the contract, which expires in 2021.
GMC Price at posting:
0.6¢ Sentiment: None Disclosure: Not Held
