RE:RE:Production Guidance Increased Again 144,000 to 150,000 oz kkkrrrr, That's great info on the tax changes. But a little hard to follow because as usual the gov takes money out of one pocket & puts it in another. You seem to have put some thought into it. How does it all net out? Could we call it an improvement? Thanks!
kkkrrrr wrote:
they still paying down debt but the situation gets better and better... 2 quarters from here and they have the cash available for developement of their mines and more exploration...
....some points :
On October 19, 2016, the Colombian Government introduced a tax bill with the Congress proposing
important changes to the Colombian tax system with respect to corporate income taxes, wealth tax and
value-added tax (“VAT”) to be enacted as law. Key proposals that would become effective in 2017 if the tax
bill is enacted in law prior to the end of 2016 include:
The current corporate income tax rate of 25% would be increased to 34% and 33% in 2017 and
2018, respectively;
In 2017 and 2018, a tax surcharge of 5% and 3%, respectively would be applicable;
As of 2019, the income tax rate would be 32%;
The current CREE tax of 9% and its surcharge of 8% in 2017 and 9% in 2018 would be eliminated;
A new 10% tax on dividends paid out of profits subject to income tax originated as of 2017;
As of 2017, corporate income taxes would be based on IFRS accounting policies;
Tax losses generated as of 2017 would be available for utilization in the following eight years
(currently there is no time limit) and the utilization of income and CREE tax accumulated losses to
2016 would also be available for an eight-year term;
The wealth tax would not be extended; and
The VAT rate would be increased from 16% to 19%.