The State Duma introduced a single mineral extraction tax rate of 6% for precious metals: simplification of taxation and an incentive for production growth
Moscow, February 12. INTERFAX.The State Duma adopted in the third reading a law establishing a single tax rate on mining in the amount of 6% for concentrates and other intermediates containing precious metals. This decision is aimed at simplifying the taxation system, eliminating disagreements in determining the tax base and stimulating further growth in the production of precious metals in Russia.
Bill No. 758158-8, initiated by the Government of the Russian Federation, was submitted to Parliament in November 2024.
“A clear and transparent procedure for taxation of precious metals mining is being introduced,” said Deputy Finance Minister Alexei Sazanov, presenting the bill.
Now the cost of concentrates containing gold, silver, platinum and other precious metals will be calculated based on the sum of the products of the amount of each metal and their average market prices for the tax period, determined by the Federal Antimonopoly Service.
What will change?
Single MET rate: Instead of the current different rates (6% for gold and 6.5% for other metals) and complex calculations based on cost, a single rate of 6% is being introduced for all concentrates and intermediates with precious metals.
Market value as a basis: The tax base will be determined based on the market value of the pure metal on world markets, and not on the cost of production. This will eliminate the need to estimate the cost, which has often caused disputes with tax authorities.
Transparency and predictability: The law eliminates the use of the rent coefficient of the ROLL, which varied depending on the metal and caused confusion in calculations.
Implications for the industry:
The explanatory note to the law notes that the adoption of a single MET rate will avoid disagreements between taxpayers and regulatory authorities. It is expected that the shortfall in budget revenues will be offset by a projected increase in the production of precious metal concentrates by 7% per year. This indicator corresponds to the average annual growth rate of precious metals production for the period 2018-2023.
When will the law come into force?
The law will enter into force 180 days after its official publication, but not earlier than the 1st of the next MET tax period.