Government decrees tax conditions for mining

The government sets the tax conditions for mining, by executive order, issued on October 27.

President Rafael Correa said that “in order for the country to be more attractive” we must change the rules on tax collection.

And for that, the extraordinary revenues tax will be calculated on the basis of sold units -not extracted-, the selling price and the base price, as stated in the document.

The text differences the calculation basis for the payment in case of gold, silver, copper and other metals. It also specifies the benefits the state and mining companies will have. The specification was a request from companies interested in deposits in Ecuador.

The decree clarifies that the Sovereign Adjustment, an additional payment to the State, will be set taking into account factors like inflation