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Indonesia issues new tax rules, hoping for clarity for Freeport and miners

Published 08/08/2018, 11:59 AM
Updated 08/08/2018, 11:59 AM
© Reuters.  Indonesia issues new tax rules, hoping for clarity for Freeport and miners
  • Indonesia issues new tax regulations the government says will provide clarity for mining companies shifting their current contracts to special mining permits, a move that could help seal a $3.9B deal with Freeport McMoran (FCX -0.5%).
  • The new rules set a corporate tax rate of 25%, in line with the country’s current rate, and miners also will pay a 4% tax on net profit to the central government and a 6% levy to local government.
  • Under its current contract signed in 1991, Freeport Indonesia pays corporate tax at 35% but no levies to central or local authorities.
  • FCX, which has been engaged in a long-running dispute with the government over its operation of the Grasberg copper mine, says it is reviewing the new regulations.
  • Now read: Freeport-McMoRan: Free Of Debt Problems, Free Of Indonesian Problems?


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