Contributed By GENI & KEBE
On principle, there are no special rules or taxes for foreign people or companies, except for specific provisions provided by international tax conventions. Companies are subject to the local fiscal regime. In addition, people are subject to the local fiscal regime as tax residents. If they are not tax residents, they are in principle subject to non-commercial benefit tax (BNC) regarding their revenues. On the other hand, a repatriation tax is due to the State from foreign people residing in Senegal during their stay, which is paid once.
Mining activities may be prohibited in protected zones established by order of the minister in charge of mines.
Mining activities may be restricted in classified forests.
Indigenous and ethnic communities benefit from mining revenues through the Support and Equalisation Fund (20% of mining revenues) and the Local Development Support Fund (0.5% of turnover excluding taxes realised by mining companies). In addition, they have the right to be indemnified when their ownership is affected as landowners (as mentioned in 3.3 Rights Acquired by the Title Holder).
Prospection authorisation can be revoked for breach of any obligation provided by the Mining Code. An exploration right can also be revoked for breach of any obligation provided by the Mining Code, including suspension of activities for six months without legitimate motivation or persistent inactivity, no payment of taxes and royalties, and lack of requesting a mining right while there is proof of a commercially exploitable deposit. An exploration right may also be revoked in the case of transfer of this right without prior approval by the Ministry of Mines and Geology.
The mining right can be revoked because of continuing inactivity, suspension or serious restriction of mining without reasonable grounds; illegal acquisition of right, including by corruption; non-payment of taxes or royalties; lack of regular register of sale of mining products; and for a legal or contractual breach, including a serious breach of health, security and environmental rules. In addition, the mining right can be revoked in the case of transfer of this right without prior approval of the Ministry of Mines and Geology.
In addition to state free carry rights of 10% in the mining company, the following taxes and royalties must be paid by title-holders, except in cases of specific tax-exemptions: