A tenfold reduction in the Mineral Extraction Tax (MET) on minerals extracted from Technogenic Mineral Formations (TMF).
It should be noted that under the previous version of the Tax Code, there was no separate article or specific procedure for calculating the tax on solid minerals extracted from TMF.
Thus, pursuant to Article 783 of the Tax Code, when calculating the Mineral Extraction Tax on solid minerals extracted from TMF, a subsoil user applies a reducing coefficient of 0.1 to the rates established by Article 781 of the Tax Code.
Introduction of a hybrid tax scale for extracted uranium, taking into account production volumes and global prices for uranium concentrate (whereas a fixed rate was previously applied).
Under the previous version of the Tax Code, a 6% rate was applied to uranium extracted using the in-situ leaching method and the mine method when calculating the Mineral Extraction Tax.
Under the new version of the Tax Code, the rates established by Article 781 depend on the annual production volume and the weighted average price of natural uranium concentrate.
Progressive taxation of extracted gold and silver, with rates ranging from 7.5% to 11% depending on global market prices.
Under the previous version of the Tax Code, a uniform rate of 7.5% was applied when calculating the Mineral Extraction Tax on gold and silver.
Under the new Tax Code, the tax rate is determined depending on the average exchange price and ranges from 7.5% to 11%.
For example, if the average exchange price of gold is USD 2,800 per troy ounce or less, a rate of 7.5% applies.
If the average exchange price is USD 3,800 per troy ounce, the rate is 11%.
A similar approach applies to silver. For example, if the average exchange price of silver is USD 28 per troy ounce or less, the rate is 7.5%. If the average exchange price is USD 30 per troy ounce, the rate is 8%, and so on.
Exemption from the Mineral Extraction Tax for five years for existing capital-intensive projects in the mining industry.
This provision is regulated by Article 782 of the new Tax Code.
According to this article, the exemption from the Mineral Extraction Tax is available provided that all three of the following conditions are met simultaneously:
Industrial production of mineral raw materials at a group of deposits under a single subsoil use contract, or at a part of a deposit, commenced after December 31, 2022, subject to the conditions established by the Government of the Republic of Kazakhstan.
The internal rate of return (IRR) for the group of deposits under a single subsoil use contract, or for the relevant part of the deposit, is 15% or less.
The subsoil use right relating to the group of deposits under a single subsoil use contract, or to the relevant part of the deposit to which the Mineral Extraction Tax rate specified in this provision was applied, may not be transferred during the period in which this provision is applied, except for a transfer in favor of a related party.