MET reduction by 10 times for minerals extracted from technogenic mineral formations (TMF).

"It should be noted that under the previous version of the Tax Code, there was no dedicated article or specific calculation procedure for the taxation of solid minerals extracted from technogenic mineral formations (TMF). Consequently, pursuant to Article 783 of the Tax Code, when calculating the mineral extraction tax on solid minerals extracted from TMO, subsoil users apply a reduction coefficient of 0.1 to the rates established in Article 781."

A hybrid scale has been introduced for extracted uranium, (replacing the previous fixed rate)  by incorporating both production volumes and global market prices for uranium concentrate.

Under the previous version of the Tax Code, a 6% rate was applied to the tax base for uranium (extracted from production solutions via the mining method) when calculating the mineral extraction tax.

The new version of the Tax Code establishes rates under Article 781 that depend on annual production volumes and the weighted average price of natural uranium concentrate.

A progressive MET has been introduced for extracted gold and silver, with rates ranging from 7.5% to 11% depending on global market prices.

Under the previous version of the Tax Code, a fixed 7.5% rate was applied when calculating the MET on gold and silver.

Under the provisions of the New Tax Code, the rate is determined by the average over-the-counter (OTC) price and ranges from 7.5% to 11%.

For instance, if the average OTC price of gold is up to and including $2,800 per troy ounce, a 7.5% rate is applied. At an average OTC price of $3,800 per troy ounce, the rate is 11%.

A similar progressive scale applies to silver. For example, if the average over-the-counter (OTC) price for silver is up to and including $28 per troy ounce, the rate is 7.5%. If the average OTC price reaches $30 per troy ounce, the rate rises to 8%, and so forth."

Existing capital-intensive projects in the mining industry are granted a five-year exemption from the mineral extraction tax.

This provision is regulated in Article 782 of the New Tax Code.

According to the norms of the article, 3 conditions must be met simultaneously in order to apply the MET exemption.

1) for the commercial extraction of mineral raw materials from a group of deposits under a single subsoil use contract, a five-year exemption applies if production at a portion of the deposit commenced after December 31, 2022, subject to the conditions established by the Government of the Republic of Kazakhstan;

2) if the internal rate of return  for a group of fields under a single subsoil use contract, or a portion of a field, is 15% or less.".

3) the subsoil use right for a group of deposits under a single subsoil use contract—specifically for the portion of the deposit to which the mining tax rate specified in this paragraph was applied is not subject to alienation during the period this paragraph remains in effect. An exception is made for alienation in favor of an interconnected party.

Source : https://www.gov.kz/memleket/entities/kgd-vko/press/news/details/1146893?lang=kk