Regards sur les incitations : Concurrence fiscale dans le secteur minier

The report analyzes tax incentives across 104 mining projects in 21 developing countries, finding that while legislation is the primary source of incentives, African countries rely more heavily on discretionary contracts. The most common incentives are fiscal stabilization clauses and corporate income tax breaks, both of which pose significant revenue risks. The study notes that the use of these incentives peaked in the late 1990s and again during the 2014-2016 commodity price crash, suggesting a correlation between low commodity prices and more generous tax terms.

• Governments are more likely to grant tax incentives through primary legislation than through individual contracts. This is generally viewed positively as laws are public and subject to legislative review, whereas contracts are often "discretionnaire, secret et susceptible d’être corrompu".
• Regional differences exist in how incentives are granted; African countries provide more incentives via contracts compared to countries in Asia and Latin America.
• Fiscal stabilization and corporate income tax incentives are the most frequent types of incentives in both primary law and contracts. These are identified as high-risk for public revenues, as they can limit a government's ability to correct errors or address unexpected revenue losses.
• Incentives related to withholding tax are common and increase the risk of base erosion and profit shifting (BEPS), as they encourage investors to transfer profits to foreign affiliates in low-tax jurisdictions.
• Cost-based incentives, such as investment deductions and tax credits, are rare, appearing only in the legislation of Colombia, Mongolia, and the Philippines, despite being better suited for mining investments than profit-based incentives.
• Royalty-based incentives are frequently found in contracts but are rarely present in primary legislation. This is concerning because royalties provide a regular and predictable revenue stream for governments.
• Fiscal stabilization clauses are nearly universal, with an average duration of 20 years. In some countries, such as Guinea, Burkina Faso, Burundi, Madagascar, and Mali, these clauses average 30-34 years, which the report suggests may be "outils de recherche de rente" rather than necessary financial guarantees.
• Corporate tax holidays are offered by more than half of the analyzed countries, with an average duration of nine years. These are considered inefficient because mining is site-specific and they may encourage investors to accelerate production or shift profits abroad during the exemption period.
• The use of tax incentives peaked in the late 1990s (averaging 4.7 per contract) and again after 2014, coinciding with the collapse of commodity prices, suggesting countries offer more generous terms to attract investment when prices are low.

APA

International Institute for Sustainable Development (2019). Regards sur les incitations : Concurrence fiscale dans le secteur minier. https://www.iisd.org/system/files/2025-02/insights-incentives-tax-competition-mining-fr.pdf

Chicago

International Institute for Sustainable Development. Regards sur les incitations : Concurrence fiscale dans le secteur minier. 2019. https://www.iisd.org/system/files/2025-02/insights-incentives-tax-competition-mining-fr.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Regards sur les incitations : Concurrence fiscale dans le secteur minier |date=2019 |url=https://www.iisd.org/system/files/2025-02/insights-incentives-tax-competition-mining-fr.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopment2019regards, author = {{International Institute for Sustainable Development}}, title = {{Regards sur les incitations : Concurrence fiscale dans le secteur minier}}, institution = {International Institute for Sustainable Development}, year = {2019}, url = {https://www.iisd.org/system/files/2025-02/insights-incentives-tax-competition-mining-fr.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }