Highlighted below, note the 5% rebate on lithium was scrapped earlier this year, but interesting 2nd article, how much will the new plant cost?
Mining activity
An investment regime for mining activity is applicable to natural and legal persons. Mining ventures included within this regime enjoy fiscal stability (i.e. tax rates will remain basically the same) for a term of 30 years, except for VAT, which will adjust to the general regime. Furthermore, the regime grants incentives for CIT, tax on assets, import duties, and any other tax for introduction of certain assets. Additionally, this mining investment law established an exploration recovery regime for the mining investors, which allows the reimbursement of the VAT credit balances originated in the mining exploration activity.
This regime allows the reimbursement of such VAT credits after a 12-month period since the expenditure was incurred, and only if it has been paid.
Through specifics regulations, the authorities established the requirements (e.g. filing a tax return, filing a report certified by a public accountant with respect to the VAT, a presentation to the Mining Secretary) to be followed by the taxpayers in order to apply for this benefit.
- Deductibility benefits: right to deduct each year from their income tax return 100 per cent of the amount invested in prospecting, special research, mineral and metallurgical tests, pilot plants, applied research and other works performed for the purpose of determining the technical and economic feasibility of a project. In cases of expansion of existing projects or starting new projects, the above-mentioned deductions may be recognised in the fiscal year in which production commences. In addition, beneficiaries are allowed to deduct provisions of cost to prevent and remedy any environmental damage derived from their activity up to 5 per cent of their operational costs.
- Accelerated depreciation benefits: investments in housing, transport, construction of plants and equipment in connection with the necessary infrastructure for mining activities (including gas pipelines, transmission lines and roads) may be depreciated within three years, in accordance with certain rules.
(20min delay)