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Tax Base Erosion and Profit Shifting

Tax base erosion and profit shifting (BEPS) through aggressive tax avoidance deprives countries of revenues to fund critical programs and services, including health care, infrastructure, and environmental management.

Resource-rich developing countries face unique BEPS risks and tax administration challenges that can prevent effective revenue collection in the mining sector and divert revenue from host governments.

With a long list of Sustainable Development Goals to fund and the COVID-19 pandemic straining public resources, it is more important than ever for resource-rich governments to ensure existing and future mining projects fully contribute to public finances for long-term economic, environmental, and social sustainability.

Securing Shared Financial Benefits from Mining

To uphold our cornerstone Mining Policy Framework, the Secretariat’s BEPS in Mining Program fosters governments’ ability to build and administer mining tax systems to secure their fair share of revenues from their country’s mineral resources.

Our capacity building, technical assistance, events, and publications improve governments’ tax policies, legislation, and tools to:

  • Enhance capacity to detect and mitigate BEPS risks to bolster financial benefits from mining
  • Promote sound tax policies and administration for the mining sector
  • Collect their fair share of mining revenue to support social programs and other government priorities
  • Adapt to a fast-changing world with tax systems that recognize the rapidity of technological change
  • Better understand the mining sector and craft policy regimes to address gaps in existing national and international tax rules to maximize revenues from mining to promote sustainable development.

Rethinking Financial Contributions from Mining

The Future of Resource Taxation is a project to rethink how developing countries benefit financially from their mineral resources.

The project is a dedicated dialogue for governments, civil society, and industry to exchange ideas on how the current 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.

This project is delivered in partnership with the African Tax Administration Forum.

 

The BEPS in Mining Program is funded by the Government of the United Kingdom, the Ford Foundation, and the Swiss Agency for Development and Cooperation.

Additional Resources

Transfer Pricing Audit Capacity Pays Dividends for Mongolia

The IGF partnered with international organizations to help Mongolia strengthen revenue collection from its mining sector.

Meeting the Moment: Strengthening tax administration to raise mining revenue mobilization across Afr

Our training program from African officials revealed particular concerns around fiscal incentives and offshore indirect transfers of mining assets.

Building Government Capacity to Secure Mining’s Financial Benefits in Latin America

Knowledge gaps related mineral pricing and metals streaming stood out during our training on tax and fiscal issues for government officials in Latin America and the Caribbean.

aerial of view of industrial of port

Three Tax Treaty Takeaways from Officials in Mining Countries

Tax treaty negotiators from Argentina, Mongolia, and Senegal underline key concerns based on their practical experience representing mining nations that are subject to international tax

Empowering Officials to Realize the Financial Benefits of Mining in Senegal

We helped Senegal address persistent risks to revenue related to tax base erosion and profit shifting in the mining sector.

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 tax minin

First Consultative Expert Meeting On The Future Of Resource Taxation

The Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF) and the African Tax Administration Forum (ATAF) hosted the First Consultative Expert Meeting on

IGF Releases Public Consultation Draft on Tax Treaty Practice in Mining Countries

The IGF has released a draft for consultation on a forthcoming practice note entitled Protecting the Right to Tax Mining Income: Tax Treaty Practice in Mining Countries.

Reforming Mining Revenue Collection Will Help Fund Sustainable Development Goals

Maximizing the financial returns on mineral wealth is critical is crucial for resource-rich developing countries.

Civil Society Perspectives on the Implications of Global Digital Tax Reforms for African Mining Coun

Perspectives from African civil society about the the implications of the global digital tax reforms on the mining countries.