MINING TAXES and FEES
CFGNiger is able to offer under the terms of its exclusive Partnership with the Government of Niger, the Mining Ministry together with the newly formed Public and Private Partnership Ministry, advice and guidance on all issues relating to mining taxes and fees.
The Government welcomes overseas private investment as a key to relaunching the national economy, and the new mining code contains a number of incentives for potential investors. These include income tax holidays and many exemptions (customs duty exemption, exemption in some cases from value-added tax, the right to remit dividends freely) equal opportunities for overseas and national investors, and guaranteed freedom from nationalisation or expropriation.
Mining companies are subject to a number of fees and taxes:
Annual area fees are related to the licenses except to the prospecting authorisation.
Mining royalties are payable at a rate of 5.5 % of the final selling price of the mineral commodity produced. Royalties are, however, deductible from income tax, which is levied at a rate of 45% after the deduction of operating and production costs. Small mines enjoy a two-year income tax holiday, while for large mines this period extends to five years from the start of commercial production. Dividends distributed to share holders attract a 16 % capital gains tax.
Other charges include stamp duty, public notary fees, value added tax and social security contributions for employees.
Customs duties are not charged on equipment imported for use for direct mining operations, or temporarily for exploration programmes. Mineral products may be exported free of duty.
Niger uses the CFA francs, (FF 1 = CFA F 100), which is tied to the French franc and is fully convertible. Foreign exchange regulations are very liberal, although with the requirement that overseas transactions must be authorised by the Ministry of Finance and made through a registered bank.