Bolivia’s Mining Fiscal Regime 2019
Summary
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.
Scope
Reasons to Buy
Summary
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.
Scope
- The report outlines the governing bodies, laws, licenses and key fiscal terms which includes corporate income tax, withholding tax, remittance tax, and mineral royalties.
Reasons to Buy
- To get active information on industry-wide major taxes and payments
- To gain an overview of Bolivia's mining fiscal regime
- To monitor and conduct analysis for mitigating the impact of regulatory changes
- To stay apprised on regulatory framework
- To understand the mining industry structure by identifying Bolivia's mining governing bodies, major laws and licenses.
Table of Contents
1 Table of Contents1.1 List of Tables
1.2 List of Figures
2 Bolivia’s Mining Fiscal Regime - Executive Summary
3 Bolivia’s Mining Fiscal Regime - Country Overview
3.1 Macroeconomic Performance
3.1.1 Ease of Doing Business
3.1.2 Corruption Index
3.3 Minerals Overview
4 Bolivia’s Mining Fiscal Regime - Industry Structure
4.1 Governing Bodies
4.1.1 Ministry of Mining and Metallurgy
4.1.2 Mining Corporation of Bolivia
4.1.3 Mining Administrative Jurisdictional Authority (AJAM)
4.1.4 Cooperative Oversight and Control Authority (AFCOOP)
4.2 Mining Law No.535
4.3 Mining Licenses
4.4 Rights and Obligations
4.4.1 Rights
4.4.2 Obligations
5 Bolivia’s Mining Fiscal Regime - Taxes and Royalties
5.1 Mineral Taxes
5.2 Mineral Royalties
5.3 Mining Incentives
6 Appendix
6.1 Abbreviations
6.2 Methodology
6.3 Coverage
6.4 Secondary Research
6.5 Contact Us
6.6 Disclaimer
List of Tables
- Table 1: Bolivia’s Mining Fiscal Regime - Mineral Royalties
- Table 2: Bolivia’s Mining Fiscal Regime - Ease of Doing Business in Bolivia, Global Ranking, June 2017 - June 2018
- Table 3: Bolivia’s Mining Fiscal Regime - COMIBOL Companies, 2019
- Table 4: Bolivia’s Mining Fiscal Regime - Other Governing Bodies and Agencies, 2019
- Table 5: Bolivia’s Mining Fiscal Regime - Mining Licenses and Contracts, 2019
- Table 6: Bolivia’s Mining Fiscal Regime - Mining Taxes, 2019
- Table 7: Bolivia’s Mining Fiscal Regime - Mineral Royalties, 2019
List of Figures
- Figure 1: Bolivia’s Mining Fiscal Regime - Country Overview, 2019
- Figure 2: Bolivia’s Mining Fiscal Regime - Real GDP (US$ billion) and Growth Rate (%), 2001 - 2017
- Figure 3: Bolivia’s Mining Fiscal Regime - Mineral Exports and FDI’s, 2006-2018
- Figure 4: Bolivia’s Mining Fiscal Regime - Ease of Doing Business in Bolivia, Global Ranking, June 2017 - June 2018
- Figure 5: Bolivia’s Mining Fiscal Regime - Corruption Perception Index Ranking Trend, 2014-2018
- Figure 6: Bolivia’s Mining Fiscal Regime - EoDB and CPI Ranking, 2018
- Figure 7: Bolivia’s Mining Fiscal Regime - Minerals Production Trend, 2011 - 2018
- Figure 8: Bolivia’s Mining Fiscal Regime - Mines/Projects by Commodity and Stage, 2019
- Figure 9: Bolivia’s Mining Fiscal Regime - Productive Actors of Mining, 2019
