How do mining projects benefit under the Omnibus Incentives?

How do mining projects benefit under the Omnibus Incentives?

Mining projects can benefit from the following incentives:

  • Employment Tax Credit (ETC) and thus face an effective corporate income tax rate as low as 17.5% 
  • Capital Allowances that cover, among other things, a broadened definition of ‘industrial buildings’
  • Duty-free Importation of Equipment and Machinery, as well as revised tariff rates ranging from 0% to no higher than 20% (with some exceptions).
  • Productive Input Relief (PIR) that provides for duty free importation of certain mining industry-related items that would have normally attracted customs duties and the Additional Stamp Duty (ASD) when these are being purchased for productive use. 

Mining projects can also benefit under the Income Tax Relief (Large-Scale Projects and Pioneer Industries) Act, where they qualify, for an attractive rate under the Employment Tax Credit (ETC) system.