This report, prepared by PwC, looks at the tax and royalties paid by the largest ICMM members from 2013-2017. In that time, taxes (excluding deferred tax) and royalties charged to the income statement amounted to $109bn, 43% of profits (adjusted for impairments).
- Tax is increasingly seen as a sustainability issue. ICMM recognises that efficient, effective, transparent, and stable resource governance is central to enhancing social and economic opportunities. Through the disclosure of tax and royalties, ICMM company members demonstrate their commitment to applying ethical business practices and robust systems of corporate governance and transparency to support sustainable development; an integral aspect of ICMM’s Mining Principles.
- ICMM members have experienced volatile commodity prices over the period 2013-2017. In this period, study participants reported a total corporate income tax charge (excluding deferred tax) of $72.5bn and a royalty charge of $36.3bn, a total of $108.8bn.
- Between 2013-2017, the ratio of tax and royalty charge to profits before impairments was 43.4%. Impairments arise in the industry when a fall in commodity prices results in the market value for a mine being lower than the current valuation in the company’s financial statements.
- For every $100 of profit before impairments, $43.40 was charged in corporate income tax and royalties. This ratio reached 65% in 2016. It did not drop below 39% between 2013-2017.
- Between 2013-2017, study participants reported corporate income tax payments of $62bn and royalty payments of $40bn, a significant contribution to the public finances of over $100bn.