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Government Facilitates VAT Reimbursements for Mining Sector Companies

Government Facilitates VAT Reimbursements for Mining Sector Companies

Companies operating in the mining and oil sectors will now benefit from a special regime in the reimbursement of the Value Added Tax (VAT).

The new law, which applies to companies in the prospecting, research, development and production phase, is the result of a legislative change made by the Government to include special regime rules favorable to companies in the sector. Speaking Tuesday at the end of the 19th Session of the Council of Ministers, the spokesperson for this body, Filimão Suaze, explained that the regime currently in force leaves out other companies from the mining and oil sectors, creating constraints in the reimbursement of this tax.

According to Filimão Suaze, the VAT refund regulation did not cover companies that sign contracts directly with the regime’s beneficiaries or those that, by Government authorization, are constituted as entities with a specific object, as well as those whose projects are still in prospecting, research and development.

“What is intended is to make the extension of the application of the regime to companies that establish contracts with those operating in the mining and oil sectors and those that, by authorization of the Government, have been constituted as entities of specific object,” he said.

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The measure, Suaze added, covers companies that have an investment equivalent to $25 million. In addition to companies benefiting from the possibility of using the VAT regularization note in the periodic declaration, the new legal instrument also abolishes the impulse of the previous stamping of the regularization note by the General Directorate of Taxes, an institution subordinated to the Ministry of Economy and Finance.

“The measures go far beyond the specific issue raised about the fuel hike,” he said.

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