Peru Mining Industry Fiscal Regime Analysis – Governing Bodies, Regulations, Licensing Fees, Taxes, Royalties, 2023 Update
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Peru Mining Industry Overview
Peru is rich in minerals and a major producer of base and precious metals. The Peruvian mining industry plays a significant role in the country’s economic development. The total mining investments reached $5.4B in 2022. Peru is the second largest copper producer in the world, also producing gold, silver, zinc, among other minerals. These investments were made by different countries across the world with China leading the list by holding 19.7% of the total investment portfolio, followed by Mexico and Canada.
The Peruvian mining industry report provides comprehensive coverage of the Peru’s mining fiscal regime. It provides information on governing bodies, laws, and regulations. The report also includes mining-related taxes and royalties.
Governing Bodies | Ministry of Energy and Mines (MINEM), Ministry of Environment (MINAM), and Geological Mining and Metallurgical Institute |
Key States | Cajamarca, Ancash, Arequipa, Lima, Puno, Cusco, Pasco, San Martin, and Moquegua |
Taxes and Royalties | Corporate Income Tax, Sales Tax, Withholding Tax, and Royalty Rate |
Key Minerals | Copper, Gold, Zinc, Silver and Lithium |
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Peru Mining Industry Dynamics
Peru was ranked 76th among 190 countries covered by the World Bank’s 2020 Ease of Doing Business Index. The mining industry in Peru is regulated by laws such as the General Mining Law, Mining Canon Law, Law Regulating Environmental Liabilities of Mining and the General Law of the Environment. Mining license holders are required to pay Mining Concession Fees every year and satisfy the minimum production criteria, failing which can attract penalties and may result in the extinction of rights. There are provisions of tax incentives, tax loss relief and capital allowances, which can be used by mining entities based on the fulfilment of certain conditions.
A competitive costs and tax framework, coupled with favourable trends in metal commodities, makes Peru an attractive place for investors to develop mining activity in the country. Currently, the country is focused on developing 74 exploration projects, with a joint investment of $596M.
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Peru Mining Industry - Key Governing Body
The Peruvian mining industry is governed and regulated by different authorities, which focus on several aspects such as administration, environment and health and safety. Some of the chief agencies include the Ministry of Energy and Mines, Geological Mining and Metallurgical Institute, the Supervisory Organization of Investment in Energy and Mining, and the Organization of Supervision and Environmental Assessment.
Ministry of Energy and Mines (MINEM): The General Directorate of Mining, the line unit of MINEM, reports directly to the Office of the Vice Minister of Mines, which is responsible for regulating and promoting mining activities, safeguarding the rational use of mining resources, and minimizing damage to the environment.
To know more about the governing bodies in the Peru mining industry, download a free sample report
Peru Mining Industry – Mining Investments
Exploration investments are a fundamental pillar in mining activity. Peru has shown to be an excellent destination for these types of investments due to its vast geological potential. Peru has around 74 exploration projects with a global investment of $596.1M spread across 17 states. Of the total, Cajamarca accounted for the highest share of the total investment, followed by Ancash and Arequipa. Of the 74 projects, copper ranks first with 39 projects ($284M), followed by gold with 18 projects ($220M), zinc with 9 projects ($47M), and silver and lithium together with 8 projects ($46M).
Peru Mining Industry Investments by State (%)
For more information on leases and licenses in each state of the Peru mining industry, download a free sample report
Peru Mining Industry – Taxes and Royalties
The main taxes applicable in the Peru mining industry are Corporate Income Tax (CIT), Tax Loss Relief, Capital Allowances, and Other taxes.
Corporate Income Tax (CIT): Companies incorporated in Peru (also known as tax resident companies) are subject to corporate income tax (CIT), which is calculated on their global taxable income. However, non-resident entities or permanent establishments of foreign companies are taxed on their Peruvian income only. Mining companies are subject to a general corporate tax regime. Companies which have signed a Stabilization Agreement, however, are required to pay an additional tax of 2%. Therefore, the total corporate income tax payable by these companies becomes 31.5%.
For more insights on the taxes and royalties in the Peru mining industry market, download a free sample report
Scope
The report focuses on the mining fiscals’ key aspects such as governing bodies, laws and regulations, governance frameworks, and sustainability practices. The report also includes mining related taxes and royalties.
Reasons to Buy
- To help businesses navigate the complexities and comply with the necessary requirements.
- Obtain up-to-date information on mining sector taxes and payments.
- Enhance your decision-making capability in a more rapid and time-sensitive manner.
- Conduct analysis to mitigate the impact of regulatory changes.
- Understand the regulatory framework.
- Gain an overview of the mining industry structure by identifying Peru’s mining governing bodies, major laws, and licenses.
Table of Contents
Frequently asked questions
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Which is the main governing body in Peru mining market?
The key governing body in Peru mining industry is the Ministry of Energy and Mines (MINEM).
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What are the key provinces in the Peru mining market?
The key provinces in the Peru mining market are Cajamarca, Ancash, Arequipa, Lima, Puno, Cusco, Pasco, San Martin, and Moquegua.
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Which are the key taxes applicable in the Peru mining market?
The main taxes applicable in the Peru mining industry are Corporate Income Tax (CIT), Tax Loss Relief, Capital Allowances, and Other taxes.
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What are the key minerals in the Peru mining market?
Copper, Gold, Zinc, Silver and Lithium are the key minerals in the Peru mining market.
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