Russia wants to impose a new mining tax on miners and increase profit tax
:  : Sep 23,2021

The Russian Ministry of Finance may impose a new mineral mining tax (MET) linked to global prices on the country’s iron ore, coking coal and fertilizer producers, as well as the ore mined by Nornickel.

The Ministry of Finance also proposed a plan to impose a formula-based profit tax on the company based on the company's previous domestic dividends and investment scale.

The source said that if approved by the government, the mining tax will depend on the global price benchmark and the number of mined products, which will affect the nickel, copper and platinum group metals contained in fertilizers, iron ore, coking coal, and Nornickel mined ore; The plan is approved and will increase the profit tax of companies that have spent more than capital expenditure on dividends in the past five years from 20% to 25% to 30%.

Companies excluded from such decisions include state-owned holding companies and holding subsidiaries where the parent company holds more than 50% of the shares and returns half or less of subsidiary dividends to shareholders over a five-year period.

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