• TaxUpdate

Today’s Chilean Official Gazette unveiled Law No. 21,591, ushering in a transformative “Mining Royalty” tax applicable to Individual and Corporate Miners from January 1st, 2024. Here are the key highlights:

1. Annual Accrual and Reporting:

  • The Mining Royalty Tax accrues annually, with reporting and payment due in April, aligning with Article 69 of the Income Tax Law.

2. Ad-Valorem Component:

  • A 1% rate applies to the copper annual sales of miners exceeding 50,000 metric tons of fine copper.
  • Adjusted taxable operational mining income impacts payment for the ad-valorem component.

3. Mining Margin Component:

  • Miners with annual sales over 50% from copper, exceeding 50,000 metric tons, face a mining margin component with rates ranging 8% – 26%.

4. General Mining Royalty Rates:

  • Miners not subject to the mining margin component face rates of 0.4% – 34.5%, applied over adjusted operational mining income.

5. Determination Factors:

  • The Mining Royalty considers factors like the average annual sales of the last 6 periods and the total sales value of related entities considered miners.
  • The value of fine copper is determined based on the average price of copper Grade A in the London Metal Exchange.

6. Monthly Provisional Payments:

  • Miners subject to the tax must make monthly provisional payments based on the weighted average of prior-year percentages.
  • The provisional payment rate is adjusted quarterly.

7. Maximum Tax Burden:

  • The law establishes a maximum limit on miners’ potential tax burden at 46.5% of adjusted taxable operational mining income.

Stay informed as Chile’s mining landscape undergoes this significant tax transformation. Read the full details in