Global Tax Regimes – How Do They Compare?

Update: This blog was originally written in Feb 2016, but has been updated in Aug 2019.

As a reminder for all QP’s doing economic analysis for PEA’s, don’t forget that one needs to present the economic results on an after-tax basis.

Every once in a while I still see PEA technical reports issued with only pre-tax financials.  That report is likely to get red- flagged by the securities regulators.  The company will need to amend their press release and technical report  to provide the after tax results.    No harm done other than some red faces.

Taxes can be complicated

When doing a tax calculation in your model, where can you find international tax information?  PWC has a very useful tax-related website.  The weblink below was sent to me by one of my industry colleagues and I thought it would be good to share it.

The PWC micro-site provides a host of tax and royalty information for selected countries.  The page is located at https://www.ey.com/gl/en/services/tax/global-tax-guide-archive

On the site they have a searchable database for tax information for specific countries.

The PWC tax and financial information includes topics such as:

• Corporate tax rates

• Excess profits taxes

• Mineral taxes for different commodities

• Mineral royalties

• Rates of permissible amortization

• VAT and other regulated payments

• Export taxes

• Withholding taxes

• Fiscal stability agreements

• Social contribution requirements

PWC has a great web site and hopefully they will keep the information up to date since tax changes happen constantly.  The website also has a guide related to the rules for the treatment of capital expenditures.   Check it out.  https://www.ey.com/gl/en/services/tax/global-tax-guide-archive

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