1 - 3.2% royalty 2 - 14.9% Govt share of gross operating profit 3 - 25% company tax rate.
I suppose item 2 is the profit sharing arrangement. Essentially it seems a bit like the 10% govt ownership in each mine that most African countries impose on all foreign mining companies, only here it is higher by 4.9% and called a profit sharing arrangement. On the other hand many African countries impose a 30% company tax rate rather than the 25% rate facing EVG. So it looks to me that overall there is no difference in the effective tax on foreign companies operating in Africa versus Dominican Republic (except to the extent that the gross operating tax is calculated differently to a company tax rate).
See other EVG press releases/presentation which may have more information on this issues.
I hope this helps. Maybe not. So seek additional advice from the company, because I am no expert in anything.
loki
EVG Price at posting:
20.5¢ Sentiment: LT Buy Disclosure: Held
