@KalennI believe that income tax applies in addition to the production sharing and royalties.
From page 26 of the PFS summary...
The Bawdwin Mineral Concession operates under a Production Sharing Agreement (PSA). Under the PSA ‘dead rent’ is payable during the pre-production period and over the life of the Starter Pit (approximately US$0.04 million per annum). Mineral taxation (or royalty) and production sharing taxation is also levied. Over the life of the Starter Pit US$ 164 million would be payable in royalties and US$ 1,278 million in production sharing taxation. The PFS financial model is pre-finance and pre-corporate taxation. Corporate taxation in Myanmar is a flat 25% rate. A periodic corporate ‘tax holiday’ can be granted for investments in strategic sectors and, or regions within Myanmar. BJV may be eligible to apply for a corporate tax holiday with respect to the Bawdwin project.
Looking through the broker valuations on the MYL website shows income tax being imposed.
A search of the web only revealed details of oil and gas PSAs. In these income tax is imposed in addition.
When MYL repatriates earnings will there be an additional 5% corporate tax to bring it up to the Australian rate?
Does anyone know how the ATO views a foreign tax holiday when funds are repatriated?
Agree with the comment about opex not being a straight percentage of revenue.
