Armenian government introduces new royalty system replacing state duty for copper,molybdenum concentrate exports

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 12:05, 5 May, 2022

YEREVAN, MAY 5, ARMENPRESS. The Armenian government is lifting the state duty for the exports of copper and molybdenum concentrate and molybdenum from January 1, 2023.

Instead, a new royalty system will be introduced.

Finance Minister Tigran Khachatryan said at the Cabinet meeting that the new component of royalty system will be applied when the profits of the companies will exceed a certain threshold. “As a result, the companies paying royalties in conditions of up to 10% profitability will not experience any increase of tax burden in terms of royalties against the royalties that were in place prior to the application of the state duties,” he said.

He said the move is aimed at making the royalty system of the exploitation of metal mines more fair and effective.

The additional royalty will be 15% in conditions of profitability exceeding 10%. The mining companies’ spending in terms of royalty payments in the first and second components, financial expenditures, accountability and transparency will be taken into consideration before taxation.

Armenian government introduces new royalty system replacing state duty for copper,molybdenum concentrate exports

Save

Share

 12:05, 5 May, 2022

YEREVAN, MAY 5, ARMENPRESS. The Armenian government is lifting the state duty for the exports of copper and molybdenum concentrate and molybdenum from January 1, 2023.

Instead, a new royalty system will be introduced.

Finance Minister Tigran Khachatryan said at the Cabinet meeting that the new component of royalty system will be applied when the profits of the companies will exceed a certain threshold. “As a result, the companies paying royalties in conditions of up to 10% profitability will not experience any increase of tax burden in terms of royalties against the royalties that were in place prior to the application of the state duties,” he said.

He said the move is aimed at making the royalty system of the exploitation of metal mines more fair and effective.

The additional royalty will be 15% in conditions of profitability exceeding 10%. The mining companies’ spending in terms of royalty payments in the first and second components, financial expenditures, accountability and transparency will be taken into consideration before taxation.