VALUE-BASED ROYALTY (mining operations)

Value-based royalty as regards mining operations in Cameroon include the ad valorem tax on mining substances and the extraction tax on quarry materials. This royalty is paid monthly by mining license or permit holders, or during the shipment of consignments by mining title holders upon filing out a tax return at the taxation authority. Such returns shall be compared with the royalty payment statements prepared by the competent services of the ministry in charge of mines.

Substances subject to ad valorem tax shall be extracted products at their merchantable state, which have been treated or not, entailing no considerable modification in their chemical composition.

The ad valorem tax shall be calculated on the basis of the taxable value of ready to ship products extracted from the mine, using information, contracts and supporting documents to the competent authorities to enable them determine such tax. The base price of the taxable value of products extracted from the mine shall be based on the international market price of the substance.

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