AngloGold starts paying 30% tax rate in Tanzania

[nngu007]

Thu Oct 27, 2011 3:12pm GMT

* To pay $48 mln this year for its Geita mine
* Other mining companies expected to follow suit

DAR ES SALAAM Oct 27 (Reuters) - Africa's biggest gold miner AngloGold Ashanti has started paying 30 percent corporate tax to the Tanzanian government this year for its Geita mine, in line with the east African country's new mining policy.

This is the first time that the mine has started paying corporate tax in Tanzania since it began commercial gold production in August 2000.

Tanzania, which is Africa's fourth-largest gold producer, previously granted a tax holiday to mining companies that exempted them from paying corporate tax until they recouped investment costs in the mines.

"AngloGold Ashanti has announced that it will pay 86 billion shillings ($48 million) corporate tax this year ... The company has already paid 8.6 billion shillings out of the amount," the Tanzanian president's office said in a statement on Thursday.

The announcement on the tax payment was made by AngloGold's Chief Executive, Mark Cutifani, to Tanzanian President Jakaya Kikwete, during a meeting in Perth, Australia, on Thursday ahead of the Commonwealth Heads of Government Meeting.
The government began negotiations with mining companies to pay the tax after drafting a new mining policy in 2009 and the subsequent passing of new mining legislation last year.

"This is the first time that AngloGold will start paying corporate tax since it entered the Tanzanian market," said the presidency.

Australian gold miner Resolute Mining was the first mining company to start paying corporate tax in Tanzania, according to the African country's minerals ministry.

Mining officials said the government was also in talks with African Barrick Gold ,which has four gold mines in Tanzania, on payment of the tax.

Tanzania announced last week it plans to raise royalty payments on exports of gold by the end of this year as it seeks to restructure its mining sector.

The 2010 Mining Act increased the rate of royalty paid on minerals such as gold from 3 percent to 4 percent and required the government to own a stake in strategic mining projects.

Sources in Tanzania's mining industry told Reuters that mining companies were yet to agree on the new royalty rates, despite the government's announcement. ($1 = 1795.500 Tanzanian Shillings) (Reporting by Fumbuka Ng'wanakilala; Editing by Duncan Miriri)
© Thomson Reuters 2011 All rights reserved

 

[nngu007]

Yes, we need the united demands...

 

[muonamambo]

Kwanza hongera Tanzania kwa jitihata ya kubadilisha sheria. Pili jamani watanzania kwa nini tunakuwa wajinga hivi.? Hawa wazungu tunaoingia nao mikataba hawana chochote wanapata hela hizi toka kwenye masoko ya share.kwa nini Nasisi tusijisajili kwenye masoko na kupata pesa za kuweza kukodisha makampuni yaweze kuchimba madini Nasi tukafaidika na faida yote itakayopatikana kwenye madini?
tutakuwa wajinga mpaka lini?

 

[Mdondoaji]

Its about time tumechoka kuibiwa na wawekezaji. Tanzania inabidi isimame kidete na tunawaomba waweregister Dar-es-Stock Exchange ili tupate kuwakata kodi ya mishahara ya wafanyakazi wao? kodi ya uwekezaji (capital gain tax) etc. Wao wabakie na 3% ya mrahaba tutafidia kwenye kodi tofauti yake.

 

[Bigaraone]

There is nothing to cheer up here. For the good part of 10 years the respective company has been enjoying tax holiday and now it is starting to pay corporate tax then political opportunists want us to blow the trumpets. Shame on you. First of all no Tanzanian worthy the name has access to accounts books to verify what has been declared as taxable figure. I think its time Tanzanians to think as we ca arrest economic difficulties by engaging in SMEs and developing nationalism and patriotic spirit (not chauvinism) if we want to prosper in the real term. Politicians who decided to sell resources so cheap should deceive us now when those resources have been eroded.
Gold mining companies may pay corporate tax and must pay but it's too late as the have leaped much and transparency in lacking in their business e=whatever language to sweeten it.

 

[Zinedine]

Thu Oct 27, 2011 3:12pm GMT

* To pay $48 mln this year for its Geita mine
* Other mining companies expected to follow suit

DAR ES SALAAM Oct 27 (Reuters) - Africa's biggest gold miner AngloGold Ashanti has started paying 30 percent corporate tax to the Tanzanian government this year for its Geita mine, in line with the east African country's new mining policy.

This is the first time that the mine has started paying corporate tax in Tanzania since it began commercial gold production in August 2000.

Tanzania, which is Africa's fourth-largest gold producer, previously granted a tax holiday to mining companies that exempted them from paying corporate tax until they recouped investment costs in the mines.

"AngloGold Ashanti has announced that it will pay 86 billion shillings ($48 million) corporate tax this year ... The company has already paid 8.6 billion shillings out of the amount," the Tanzanian president's office said in a statement on Thursday.

The announcement on the tax payment was made by AngloGold's Chief Executive, Mark Cutifani, to Tanzanian President Jakaya Kikwete, during a meeting in Perth, Australia, on Thursday ahead of the Commonwealth Heads of Government Meeting.
The government began negotiations with mining companies to pay the tax after drafting a new mining policy in 2009 and the subsequent passing of new mining legislation last year.

"This is the first time that AngloGold will start paying corporate tax since it entered the Tanzanian market," said the presidency.

Australian gold miner Resolute Mining was the first mining company to start paying corporate tax in Tanzania, according to the African country's minerals ministry.

Mining officials said the government was also in talks with African Barrick Gold ,which has four gold mines in Tanzania, on payment of the tax.

Tanzania announced last week it plans to raise royalty payments on exports of gold by the end of this year as it seeks to restructure its mining sector.

The 2010 Mining Act increased the rate of royalty paid on minerals such as gold from 3 percent to 4 percent and required the government to own a stake in strategic mining projects.

Sources in Tanzania's mining industry told Reuters that mining companies were yet to agree on the new royalty rates, despite the government's announcement. ($1 = 1795.500 Tanzanian Shillings) (Reporting by Fumbuka Ng'wanakilala; Editing by Duncan Miriri)
© Thomson Reuters 2011 All rights reserved

Nadhani wazungu wote wamebaini kuwa rais wetu gharasa, yes ni uongo mwingine huu. Nimepitia policy zote za tz na hyo eac lkn sjaona hiyo iliyotajwa na reuter kama EAC Mining policy kabla ya kujua ni kifungu gani hicho. Na vp kodi ilipwe tz,lkn mkuu akajulishwe juu ya hili huko Australia. Au hyo kodi haingii ktk gvt cofer so mkuu akawa hajui? Na je kwenye list ya pinda ya wale large taxpayer wako no ngapi? Nachelea kuamini kuwa wazungu wanadhani wa-tz hatutakuwa na access ya kuona uongo huu.

 

[mharakati]

sielewi toka 2000 hawajalipa chochote.tax holiday gani ya miaka 10? hivi royalty ilikua ni bei gani? kwa hesabu zangu hawa jamaa wameingiza $1.6 bil kwa miaka hiyo. sasa waliinvest kiasi gani hawa?

 

[Chakunyuma]

Kabla ya sheria mpya kupitishwa mwaka huu tax holiday ilikuwa ni miaka mitano sasa inamaana hao walianza kuiapply kabla hata haijatungwa? Haingilii akili mambo ya Tanzania yakaongelewe nje ya nchi hapa kuna tatizo.

 

[Sungurampole]

Hivi kodi ya makampuni ya madini (corporate tax) inalipwa kwa vigezo gani?

Habari hizi zinanifanya nihisi vibaya na kukumbuka utani unaotuita 'WADANGANYIKA' nijuavyo mimi kodi ni wajibu kisheria and is arrived at by computation and demanded by tax authority (TRA) and not paid offered as birthday gift! No wonder the shiling is falling!

 

[MANI]

There is nothing to cheer up here. For the good part of 10 years the respective company has been enjoying tax holiday and now it is starting to pay corporate tax then political opportunists want us to blow the trumpets. Shame on you. First of all no Tanzanian worthy the name has access to accounts books to verify what has been declared as taxable figure. I think its time Tanzanians to think as we ca arrest economic difficulties by engaging in SMEs and developing nationalism and patriotic spirit (not chauvinism) if we want to prosper in the real term. Politicians who decided to sell resources so cheap should deceive us now when those resources have been eroded.
Gold mining companies may pay corporate tax and must pay but it's too late as the have leaped much and transparency in lacking in their business e=whatever language to sweeten it.

Don't forget that these dont last longer 10-15 yrs. Now 10yrs free 5 yrs you pay tax!

 

[babu M]

Waziri wa Nishati na Madini Mh.William Ngeleja(kulia) na Mwakilishi wa Ophir Energy Bw.Jonathan Taylor(kushoto) wakisaini mikataba ya utafutaji na uendeshaji wa Gas na Mafuta nchini Tanzania wenye thamani ya shilingi Bilioni 7 US dollars,Nyuma yao ni Mh.Nimrod E. Mkono Mbunge wa Musoma Vijijini akiwa na wanasheria wakati wa kusaini mikataba hiyo.

Mtazamo: Kwa mikataba kama hii Corporate Tax ndio sahau.

 

[babu M]

Yes, we need the united demands...

Sahau! Vodacom ni kati ya makampuni wanao tumia loopholes in the tax system kukwepa kodi. Sisi kama wananchi wapenda maendelea tungeaakikisha mambo kama haya tunayakea kwa nguvu zote sio tu kwenye forums na magazeti pia kwa kutokutumia mtandao wao lakini cha kushangaza kila kukicha wanaongeza wateja

 

[Bantugbro]

Nadhani wazungu wote wamebaini kuwa rais wetu gharasa, yes ni uongo mwingine huu. Nimepitia policy zote za tz na hyo eac lkn sjaona hiyo iliyotajwa na reuter kama EAC Mining policy kabla ya kujua ni kifungu gani hicho. Na vp kodi ilipwe tz,lkn mkuu akajulishwe juu ya hili huko Australia. Au hyo kodi haingii ktk gvt cofer so mkuu akawa hajui? Na je kwenye list ya pinda ya wale large taxpayer wako no ngapi? Nachelea kuamini kuwa wazungu wanadhani wa-tz hatutakuwa na access ya kuona uongo huu.

Hakuna kitu kama hicho (EAC mining policy) kwa maana madini ni ya Tanzania na siyo ya EAC.

Ni kweli kuwa mrabaha wa madini (dhahabu) umeongezwa toka 3% kwenda 4%, na corporate Tax ya 30% nayo inaanza kulipwa kumbuka wachimbaji wengi walipewa tax holiday ya mpaka miaka 10 sasa muda huo umeshafika.....😛hoto:

 

[Mtanganyika]

Nilitegemea habari kama hizi ndio zisimame juu ya forum, ndio maana nasema kwamba tumepoteza muelekeo wote na serikali yetu. Kwanza kabisa unasema utalipa Tax kiasi fulani wakati financial year haijaisha, jee hii ni estimate kutokana na proforma Financials statements, au kutokana na forecast? Pili huu mchezo wa kuwaambia kwamba hulipi tax mbaka urecoup Capital Investment tumeitoa wapi? Where in the world wanafanya upuuzi kama huu.

Tatu jee ni auditor gani wenye understanding kuhusu Mineral accounting? Jee tunapeleka auditor ambapo wanafahamu kwamba nini kinafanyika, au ndio tunakuta watu wana depreciate assets in two years matokeo yake wanashusha bottom line hence less tax. Na kama tunawapa Investment recoup kwa nini tusi accrual taxes in the form of differed? Kuna watanzania wengi sana wenye ujuzi na auditing ya Natural Resources wapo all over USA and UK lakini sababu ya poor policy za Tanzania hawa watu wanaona it will be brain dead kurudi home.

Mwisho, topic kama hizi ni muhimu kwani, kama tukiweza kuchukua kodi ya kutosha tutaweza kusema kwamba sisi ni nchi huru, lakini kwa sasa sisi tunatawaliwa na wanao tukopesha.

2015 we need to take OUR country back.

 

[Keykey]

Wow! Tax holiday miaka 10? Only in Tanzania!

 

[Bantugbro]

Wow! Tax holiday miaka 10? Only in Tanzania!

Habari ndio hiyo....

 

[Ndinani]

Barrick Gold hata siku moja hawatakubali kubadilsha mikataba mliosaini nao hapo awali ili waanze kulipa hiyo kodi kwani wamekwisha lipa kwa kuwahonga viongozi wa serikali ingawa hizo walizowapa ni kiduchu tu. Sinclair na kundi lake wamewaweka viongozi wetu mifukoni hawawezi hata kufurukuta; we angalia tu Barrick mara ngapi wameahidi kulist kwenye stock exchange yetu na kila wakati ukifika wanaahilisha yote hiyo kutaka kuficha wananchi wasijue mapato yao stahihiki na serikali yetu wala haiwachukulii hatua!! Jeuri ya Barrick ilionyeshwa wakati Maokola Majogo akiwa waziri wa Nishati walipomkatalia kuingia kwenye chumba cha kuhifadhia zahabu mgodini kwao!!

 

[Mazingira]

Barrick Gold hata siku moja hawatakubali kubadilsha mikataba mliosaini nao hapo awali ili waanze kulipa hiyo kodi kwani wamekwisha lipa kwa kuwahonga viongozi wa serikali ingawa hizo walizowapa ni kiduchu tu. Sinclair na kundi lake wamewaweka viongozi wetu mifukoni hawawezi hata kufurukuta; we angalia tu Barrick mara ngapi wameahidi kulist kwenye stock exchange yetu na kila wakati ukifika wanaahilisha yote hiyo kutaka kuficha wananchi wasijue mapato yao stahihiki na serikali yetu wala haiwachukulii hatua!! Jeuri ya Barrick ilionyeshwa wakati Maokola Majogo akiwa waziri wa Nishati walipomkatalia kuingia kwenye chumba cha kuhifadhia zahabu mgodini kwao!!

Ni kweli mkuu si unakumbuka lile pande la dhahabu alilopewa Mkapa kipindi kile? Si unakumbuka hawa jamaa walivyozika watu hai huko Bulyang'hulu na hawakufanywa chochote na serikali ikasema ni uongo? Naona na Kikwete naye wameshamweka mfukoni. Jamaa hawa wana jeuri kupita kawaida na huwa wanawapiga makofi hata makamanda wa polisi na hawafanywi chochote, hii jeuri wanaitoa wapi?