Sixth Schedule, The Income Tax Act, 2000

MINING S ECTOR The rate of tax applicable to companies under section 21 for the year of assessment commencing after 1st April, 1999 shall be thirty seven and one half percent subject to any additional tax on profits agreed between the Ministry [lines missing]. The rate of capital allowances— a) on expenditure under section 45 (start-up costs) on mineral and petroleum prospecting and exploration shall be one hundred percent; and b) on production rights and other expenditure incurred on mineral and petroleum development shall be— i. an initial allowance of forty percent of cost in the year of expenditure; and ii. an annual allowance of twenty percent of cost for each of the three years succeeding the year of expenditure. 3. The rate of withholding tax to be paid by taxpayers under section 21 shall be— (a) on interest to residents 15 percent (b) on interest to non-residents 15 percent (c) on dividends to residents 10 percent (d) on dividends to non-residents 10 percent (e) on rents 10 percent (f) on royalties and natural resource payments 25 percent (g) on payments to resident contractors 5 percent (h) on payments to non-resident contractors 10 percent (i) on pensions and annuities under section 121(2) 15 percent 4. The holder of a mining lease shall pay a minimum income tax of three and one half percent of turnover where his chargeable business income is below seven percent of turnover in any year of assessment, subject to subsection (3) of section 69. [Lines missing] 6. A loss in any year of assessment may be carried forward as a deduction against income of the subsequent year of assessment— a) where a deduction for head office expenses payable is not to exceed one and one half percent of sales, any excess of such expenses shall be treated as a dividend under section 85; b) where a deduction for interest payable on loans from associates is prohibited because the total borrowing of the paying company exceeds three times its paid-up share capital, that test shall be applied in addition to paragraph (b) of subsection (3) of section 35, and any amount disallowed shall be treated as a dividend under section 85. 7. The Ministry responsible for mineral resources shall advise the Commissioner of— a) a holder of mineral rights permitted to account in United States dollars; b) any “appropriate price” determined by the Minister responsible for mineral resources and the circumstances of that determination; c) a holder of mineral rights permitted to retain foreign currencies; d) the nature (but not the content) of any document or information obtained by order of the Minister and the reason for ordering its production; e) the name, address and taxpayer file number of each licensed exporter and of any person for whom an agency fee has been paid.