Introduction
The Democratic Republic of Congo (DRC) is one of the world’s richest countries in terms of mineral resources, hosting vast deposits of cobalt, copper, gold, diamonds, lithium, and coltan. However, operating in its mining sector requires a strong understanding of the Mining Code (Code Minier) and its fiscal regime.
The DRC’s Mining Code of 2018, together with its Mining Regulations (2018), sets out how royalties, taxes, and incentives are applied to mining operations. For both local and foreign investors, compliance with the Direction Générale des Impôts (DGI) and Cadastre Minier (CAMI) is not optional—it is essential to operate legally and profitably.
This guide breaks down the DRC’s mining tax structure, focusing on royalties, fiscal obligations, and incentives available to investors.
1. Overview of the DRC Mining Fiscal Regime
Mining companies in the DRC are subject to a specific fiscal regime governed by:
- Mining Code (Law No. 18/001 of March 9, 2018)
- Mining Regulations (Decree No. 18/024 of June 8, 2018)
- Tax Code and Customs Code for general taxation
The Mining Code aims to balance government revenue collection and investment attractiveness by clearly defining royalties, corporate tax, customs duties, and exemptions.
2. Key Taxes Applicable to Mining Companies
Mining companies in the DRC face several direct and indirect taxes, including:
Tax Type
Description
Rate
Corporate Income Tax
Tax on mining profits
30%
Royalties (Redevance Minière)
Paid on the market value of minerals extracted
Varies by commodity
Surface Tax (Annual Fee)
Based on exploration or exploitation area
From USD 5–20 per hectare
Withholding Tax
On dividends, interest, and service payments
10%–20%
VAT (TVA)
On goods and services
16%
Import Duties
On equipment, vehicles, and materials
Variable
Export Duties
On mineral exports (certain cases)
Variable
The DRC applies a ring-fenced taxation principle, meaning each mining project is treated as an independent tax entity.
3. Mining Royalty (Redevance Minière)
Royalties are one of the most critical components of the DRC mining tax framework. They are paid based on the gross commercial value of minerals extracted, regardless of whether the mine is profitable.
Royalty Rates by Mineral (as per 2018 Code):
Mineral Type
Royalty Rate
Precious metals (Gold, Platinum)
3.5%
Non-ferrous metals (Copper, Zinc, Nickel)
3.5%
Ferrous metals (Iron, Manganese)
2%
Industrial minerals (Limestone, Clay)
1%
Precious stones (Diamonds, Emeralds)
6%
Strategic minerals (Cobalt, Lithium, Coltan, Germanium, etc.)
10%
Key Features:
- The royalty base is the market value at the point of sale, not the cost of production.
- Payments are made to the Treasury and distributed among central government, provincial authorities, and local communities.
- Strategic minerals, introduced under the 2018 amendments, attract a higher royalty (10%) due to their global economic significance.
4. Corporate Income Tax and Profit Distribution
Mining companies pay Corporate Income Tax (CIT) at a standard rate of 30%.
Important points:
- Losses can be carried forward for five years.
- Dividends distributed to shareholders attract a 10% withholding tax.
- Interest, royalties, and service payments to non-residents may be subject to 20% withholding tax, unless reduced by a double taxation treaty.
5. Surface Fees (Annual Mining Rights Tax)
The DRC charges an annual surface fee based on the size and type of license held:
License Type
Fee per Hectare (USD)
Exploration (Research Permit)
$5
Exploitation (Mining Permit)
$20
These fees must be paid to the Mining Cadastre (CAMI) to maintain valid rights. Failure to pay may result in the revocation of mining titles.
6. Customs and VAT Incentives
The DRC Mining Code provides several fiscal and customs incentives to promote investment:
During Exploration Phase:
- Exemption from import duties and VAT on equipment, vehicles, and consumables used exclusively for exploration.
- Simplified customs clearance procedures for registered operators.
During Exploitation Phase:
- Reduced import duties on production equipment.
- VAT suspension for materials used in mining production (subject to authorization).
- Accelerated depreciation for capital investment in mining infrastructure.
These incentives help reduce initial investment costs and improve project cash flow.
7. Stability Clause
Mining investors benefit from a 10-year stability guarantee, meaning that fiscal terms (tax rates, customs duties, and incentives) applicable at the time of licensing remain unchanged for ten years.
However, the 2018 Mining Code narrowed this clause from ten years after exploitation begins to ten years after license issuance, tightening the window for fiscal stability.
8. Profit Repatriation Rules
Mining companies may repatriate up to 60% of export proceeds to meet operational and financial obligations abroad. The remaining 40% must be retained in the DRC to support local banking liquidity and the national economy.
All transactions must be conducted through authorized local banks in compliance with foreign exchange regulations issued by the Central Bank of Congo (BCC).
9. Local Community and Development Contributions
The 2018 Mining Code introduced a community development fund, requiring mining companies to allocate 0.3% of turnover to social development projects within their operating areas.
Funds are managed jointly with local authorities and communities to finance education, health, and infrastructure initiatives.
10. Compliance and Reporting Obligations
Mining operators must comply with:
- Monthly and quarterly declarations to DGI and CAMI.
- Annual financial reports audited by a certified accountant.
- Environmental and social impact reports approved by the Ministry of Mines.
- Transfer pricing documentation, especially for related-party transactions.
Non-compliance can result in fines, suspension of permits, or contract cancellation.
11. Key Challenges and Opportunities
Challenges:
- Complex and evolving regulatory framework.
- Inconsistent enforcement at provincial level.
- Delays in VAT refunds and administrative approvals.
Opportunities:
- High demand for strategic minerals (especially cobalt and lithium).
- Expanding digital systems within the DGI and CAMI.
- Potential for public-private partnerships (PPPs) in infrastructure and local beneficiation.
Conclusion
The DRC Mining Tax Code establishes a robust fiscal framework designed to capture fair value from the country’s vast mineral wealth while encouraging responsible investment.
Mining royalties, corporate tax obligations, and local development contributions form the backbone of the system—ensuring both state revenue and community benefit.
However, navigating these obligations requires expertise, accurate reporting, and a commitment to transparency. Companies that understand and comply with the DRC’s tax and regulatory requirements are best positioned to thrive in Africa’s most resource-rich yet dynamic mining environment.
