Evolving Standards on Stabilization
A practical guide to the Organisation for Economic Co-operation and Development’s Guiding Principles on Durable Extractive Contracts, Principles VII and VIII The latest OECD Guiding…
For many countries, mineral resources represent a vital opportunity to achieve much-needed economic and social development.
However, the financial promise of mining can go unfulfilled when host governments are unable to collect their fair share of financial benefits. This can be due to poorly drafted contracts, poorly designed fiscal policies and tax incentives, or aggressive tax planning by multinationals.
Collecting fair revenue and sharing benefits also builds trust, which is key to strong mineral supply chains that support economic development. This is especially important today, as the global economy demands critical mineral inputs for new technologies and the transition to low-carbon energy.
In accordance with the IGF’s cornerstone Mining Policy Framework, the Secretariat supports member countries in building and administering mining fiscal regime measures that secure their fair share of revenues from the sector.
Global Mining Tax Initiative
The Global Mining Tax Initiative is the main component of the IGF’s work on financial benefits. It is a distinct program offering for IGF member countries that covers fiscal policy for the entire mining value chain, from exploration and development to mining, processing, mineral sales, and mine closure. This specialized and comprehensive work program focuses on all aspects of fiscal policy, including taxes, royalties, and financial modelling. It shares unique expertise on international tax challenges related to the global mining sector.
The Future of Resource Taxation
The IGF partnered with the African Tax Administration Forum to rethink how developing countries benefit financially from their mineral resources. We launched The Future of Resource Taxation in 2020, a research project to discover how the existing system of mining taxation can be improved and identify new, innovative fiscal options for resource-rich countries to maximize the returns from their mineral wealth.
The project crowdsourced and developed policy ideas from governments, civil society, academia, and industry. The end result is a handbook for policy-makers: The Future of Resource Taxation: 10 Policy Ideas to Mobilize Mining Revenues. It presents a menu of innovative fiscal measures to strengthen revenue collection in the mining sector.
Resources
Financial Benefit-Sharing Issues for Critical Minerals: Challenges and opportunities for producing countries
Are current fiscal approaches and policies aligned with national strategies, including ensuring that mineral-rich developing countries collect an appropriate share of the financial benefits from…
Determining the Price of Minerals: A transfer pricing framework
Practical guidance to support developing countries in accurately pricing mineral sales for the purposes of revenue collection.
The Future of Resource Taxation: 10 policy ideas to mobilize mining revenues
The mining sector is at the nexus of important global phenomena: climate change and the push to transition to low-carbon energy, the development of new…
Protecting the Right to Tax Mining Income: Tax treaty practice in mining countries
This practice note is to help government officials in resource-rich developing countries–who may be deciding to adopt or renegotiate tax treaties–to protect their right to…
Global Digital Tax Reforms and Mining: The issue of temporary differences
This report examines how the OECD-led global digital tax reforms could lead to lost mining investment and revenue in developing countries if issues related to…
Global Digital Tax Reforms: Highlighting potential impacts for mining countries
This report examines how proposed global tax reforms aimed at the digital sector may affect resource-rich developing nations.
The Future of Resource Taxation: A roadmap
This document frames the IGF and ATAF’s project, The Future of Resource Taxation, which takes stock of mining taxation practices and considers alternatives to maximize…
Insights on Incentives: Tax competition in mining
This paper highlights key findings from an analysis of the IGF Mining Tax Incentives Database, a collection of files comparing the fiscal regimes of 104 mining…
Tax Incentives in Mining: Minimising risks to revenue (supplementary guidance )
In a world of mobile capital and profits, many developing countries use tax incentives in the hope of attracting domestic and foreign investment. Their effectiveness,…
Monitoring the Value of Mineral Exports: Policy options for governments
This practice note aims to increase policy-makers knowledge of the process of determining the value of exported minerals and support informed, risk-based government decisions on…
Tax Incentives in Mining: Minimising risks to revenue
This practice note looks at tax incentives in the mining sector to help governments design fiscal regimes for the mining industry that raise sufficient revenue,…
Limiting the Impact of Excessive Interest Deductions on Mining Revenue
This document responds to a concern of many developing countries that multinational enterprises use debt “excessively” in mineral-producing countries as a mechanism to shift profits…
Blogs, Announcements, and Other Posts
Tax Policies for Enhancing Domestic Value Addition for Critical Minerals: Lessons from policy and practice
With global demand for critical minerals soaring, resource-rich countries must focus on strengthening infrastructure, clear regulations, and access to finance…
Price Indices Approach Is Key to Lithium Revenue Collection
How can mineral-rich countries determine accurate prices for lithium and ensure fair revenue collection in the sector? The use of price…
Setting a Benchmark Price for Phosphate to Bring Financial Benefits to Senegal
The IGF helped Senegal establish a phosphate reference price to improve revenue collection in the sector.
Conference on the Future of Resource Taxation in Latin America and the Caribbean
Bringing together government officials from ministries of mining, finance, and revenue authorities, as well as industry, civil society, academia, and…
Updates to UN and OECD Model Tax Treaties Aim to Stop Mining Revenue Leakage
How do new proposals from the UN and OECD seek to address concerns from resource-rich countries about revenue risks associated…
Variable Royalties for Mineral Price Volatility in the Energy Transition
Careful design and implementation of these variable royalties could prove worthwhile for many countries, especially as mineral price volatility is…
Argentina Gets Innovative With Export Duty, Uses Financial Modelling to Unlock Economic Potential
The IGF helped Argentina to financially model mining development projects to assess how fiscal regimes may be affecting mining investment…
Argentina Pulling Policy Levers to Maximize Lithium Benefits
Argentina is using a number of policy tools to ensure lithium extraction fully benefits the nation.
Mining Fiscal Tools Should Offer Simplicity, Participation, Fairness, and Compensation
Governments want innovative and effective fiscal policies for the mining sector that offer simplicity, participation, fairness, and compensation.
The Future of Mining Taxation
A webinar to discuss how countries can adapt their mining tax policies to respond to climate change, automation, and the…
Financial Benefits from the Lithium Industry: Opportunities and challenges for Argentina
The half-day event included two panel discussions about financial benefits and the lithium sector focusing on opportunities and challenges at…
The OECD–G20 International Tax Reforms and Mining: Implications for IGF members
Many multinational mining companies will be subject to the new global tax rules and governments should understand the new rules…
Establishing a Reference Price for Bauxite Gets Fair Returns for Guinea
The IGF worked with Guinea to establish a benchmark price for bauxite.
UNU-WIDER-IGF Webinar | Critical Minerals and Revenue Generation
The IGF and UNU-WIDER's sixth researchers’ seminar on Extractive Industries: Taxation and Revenues.
Transfer Pricing Audit Capacity Pays Dividends for Mongolia
The IGF partnered with international organizations to help Mongolia strengthen revenue collection from its mining sector.