LIMITACIÓN DEL IMPACTO DE LAS DEDUCCIONES DE INTERESES EXCESIVAS EN LOS INGRESOS MINEROS

The document examines how multinational enterprises (MNEs) in the mining sector use debt financing to reduce taxable income in host countries. It details common profit-shifting techniques, such as 'debt push down' and the use of hybrid instruments, and evaluates various regulatory responses. The primary recommendation is the adoption of OECD BEPS Action 4, which limits net interest deductions based on a fixed ratio of EBITDA, complemented by withholding taxes and transfer pricing rules.

• Mining operations are characterized by high initial capital requirements and significant financial risk, making debt a necessary but potentially abusive funding source.
• Multinational enterprises often centralize financing through a 'group treasury' located in low-tax jurisdictions to minimize corporate and withholding taxes.
• Common base erosion techniques include 'Debt Push Down' (leveraged buy-outs where acquisition debt is transferred to the local mine), the use of hybrid financial instruments with both debt and equity features, and the inflation of interest rates beyond market levels.
• OECD BEPS Action 4 is recommended as a primary tool to limit interest deductions by linking them to a company's taxable income, specifically using a fixed ratio (between 10% and 30%) of EBITDA.
• To avoid penalizing legitimate mining investments, the document suggests allowing the carry-forward of disallowed interest expenses to future years, provided the loans have a legitimate commercial justification.
• Other direct measures to limit interest include thin capitalization rules (debt-to-equity ratios), interest withholding taxes (IWT), and the 'Uruguayan rule,' which limits deductions based on the difference between local and foreign tax rates.
• Developing countries with limited administrative capacity should prioritize simple, transparent, and uniform measures to avoid corruption and the granting of special treatments to specific projects.

APA

Devlin, D. (2018). LIMITACIÓN DEL IMPACTO DE LAS DEDUCCIONES DE INTERESES EXCESIVAS EN LOS INGRESOS MINEROS. International Institute for Sustainable Development. https://www.iisd.org/system/files/2025-05/limiting-impact-excessive-interest-deductions-mining-revenue-es.pdf

Chicago

Devlin, Dan. LIMITACIÓN DEL IMPACTO DE LAS DEDUCCIONES DE INTERESES EXCESIVAS EN LOS INGRESOS MINEROS. International Institute for Sustainable Development, 2018. https://www.iisd.org/system/files/2025-05/limiting-impact-excessive-interest-deductions-mining-revenue-es.pdf.

Wikipedia

{{cite report |last1=Devlin |first1=Dan |title=LIMITACIÓN DEL IMPACTO DE LAS DEDUCCIONES DE INTERESES EXCESIVAS EN LOS INGRESOS MINEROS |publisher=International Institute for Sustainable Development |date=2018 |url=https://www.iisd.org/system/files/2025-05/limiting-impact-excessive-interest-deductions-mining-revenue-es.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{devlin2018limitacin, author = {Devlin, Dan}, title = {{LIMITACIÓN DEL IMPACTO DE LAS DEDUCCIONES DE INTERESES EXCESIVAS EN LOS INGRESOS MINEROS}}, institution = {International Institute for Sustainable Development}, year = {2018}, url = {https://www.iisd.org/system/files/2025-05/limiting-impact-excessive-interest-deductions-mining-revenue-es.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }