On November 26, the Mexican House of Representatives passed an amendment proposed by President Claudia Sheinbaum amending the Governmental Fees Law which included in the changes, increases to the fees paid by holders of mining concession of the Special Mining Fee and the Extraordinary Mining Fee.
The Special Mining Fee is a contribution made by concession holders to the Mexican government of 8.5%, increased from 7.5%, of the profit made from the sale of minerals obtained through extraction. The Extraordinary Mining Fee only applies to profits on the sale of specific materials such as gold, silver, and platinum, paying an additional 0.5% fee on profits, to be increased to 1.0% with the amendment.
An economic study performed by CAMIMEX, the Mexican national mining chamber, established that in 2023 the mining sector received domestic and foreign investment in excess of US$4.7 billion. Minerals obtained from the subsoil are considered non-renewable natural assets by the Mexican government, making it a priority to maximize state revenues from their extraction.
The Mexican mining sector has attracted the attention of investors, regardless its nominal tax burden of 53%, compared to similar, but more favorable levels in other mining countries such as Peru (40%), Chile (36%), Canada (35%), and the U.S. (30%).
For further details, please do not hesitate to contact the tax and energy practice at Foley & Lardner Mexico.
