Market Research Report
Bolivia's Mining Fiscal Regime 2019
|Published by||GlobalData||Product code||835768|
|Published||Content info||19 Pages
Delivery time: 1-2 business days
|Bolivia's Mining Fiscal Regime 2019|
|Published: May 1, 2019||Content info: 19 Pages||
Bolivia is endowed with several mineral deposits such as gold, silver, tin, zinc, lead and lithium. Silver, gold and tin are the major minerals contributing to the country's economy, and are mainly spread across the Potosi, Beni, La Paz and Oruro provinces. These three commodities account for around 60% of the total active mines in the country, and 70% of total development projects.
Bolivia hosts some of the world's largest deposits of lithium, a key element in electric vehicles, at Salar de Uyuni in Potosi. Lithium is very economical if extracted from underground brines, which are abundant in Bolivia. The Bolivian government has already invested millions of dollars towards lithium development, and is also seeking foreign investors to scale-up further. In pursuit of this, a joint venture between the Bolivian government and China-based Xinjiang TBEA Group was established to exploit lithium opportunities in February 2019.
The Ministry of Mining and Metallurgy is the key governing body for mining in Bolivia. The mining industry is managed and regulated by the country's Mining Law No. 535, which came in force in place of the Mining Code of 1997 (law No. 1777) in 2014. It was the largest breakthrough for the country's mining laws in over a decade, however, it came into effect subsequent to many objections from cooperative miners - the community with the most significant contribution towards the country's mining industry.
Depending upon the mineral, the country's mineral royalties ranges between 1 to 7%, calculated on sales. In reference to income tax, private mining companies are subject to a corporate income tax (CIT) at 25% plus a special mining tax of 25%. Remittance of profits and other income abroad is subject to a 12.5% remittance tax.
The report "Bolivia's Mining Fiscal Regime 2019", includes country's mineral overview and a snapshot on its macroeconomic performance. It comprehends the country's mining industry structure by covering various governing bodies and their functions, laws and regulations, and rights and obligations. We also explore the cost of doing business by providing information related to various taxes, royalties and incentives applicable.
The report outlines the governing bodies, laws, licenses and key fiscal terms which include corporate income tax, withholding tax, remittance tax, and mineral royalties.