CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Ghana Grants Tax Breaks To Gold Fields Limited

Ghana Grants Tax Breaks To Gold Fields Limited

by Lorys Charalambous, Tax-News.com, Cyprus

04 April 2016


Gold Fields Limited has announced that it has concluded a development agreement with the Government to include a corporate tax rate cut and sliding scale royalty rates for its Tarkwa and Damang mines in Ghana.

The company disclosed that there is to be an immediate reduction in its corporate tax rate from 35 percent to 32.5 percent, effective March 17, 2016, while its current five percent royalty will alter to a changeable rate based on the global gold price with effect from January 1, 2017.

Up to a gold price of USD1,300 per ounce (the current price is around USD1,220/oz), Gold Fields will pay a royalty rate of three percent. On a sliding scale, that rate will only rise back to five percent when the price reaches USD2,300/oz or above.

Gold Fields is one of the world's largest gold mining firms, and is headquartered in South Africa. Given the present weakness in the gold price coupled with the comparative strength of the Ghanaian currency (particularly against the South African rand), Gold Fields has been considering whether or not to invest in the development of the Damang mine, or stop operations and await a gold price increase.

The term of the development agreement will be for a period of 11 years for Tarkwa and nine years for Damang, each renewable for an additional five years. After conclusion of the agreement, the company confirmed that Ghana "continues to be a key region for Gold Fields and we commend the Government of Ghana for creating a fair and competitive environment in the country."

TAGS: tax | business | mining | royalties | corporation tax | tax breaks | currency | Ghana | Africa

To see today's news, click here.

Leave a comment

Read our Posting Guidelines

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 






Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Tax-News+ Updates

Receive FREE daily updates from Tax-News.com, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...

 

Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »