Pursuant to the provisions of Article 168 of this Code, holders of a Mining Title cannot combine, at any one time and for the same title, the benefit of tax advantages applicable to different phases of activity.
However, a legal entity that holds several mining Titles may obtain, pursuant to the provisions of this Code, tax advantages for each of these mining titles. These tax advantages may relate to different phases of activity for each of these mining titles.
For the purpose of this Code, as well as for the application of common law provisions of the General Tax Code, this legal entity is deemed to have a separate personality for tax purposes for each of these mining titles. If this legal entity is also carrying out another activity other than an activity for which the mining titles is required pursuant to the provisions of this Code, it will also be deemed to have a separate personality for the purpose of this activity. Each activity relating to a mining title or to another activity must be identified by a separate tax number and must have separate accounting records.
It follows that there can be no reconciliation effected between charges, duties and taxes of the same nature between activities identified by a separate identification number and that, in particular, the charges incurred under one mining title cannot be deducted from the taxable profit of another mining title.
In addition, any supply of goods or provision of service between two activities identified by a separate tax identification number, but for the same legal entity, must be the object of a pro-forma invoice, an assessment of market prices to determine a taxable product for the activity identified by the seller or provider identification number, and a deductible charge for the activity identified by the identification number of the acquirer of goods or services. However, these supplies and provisions are not considered to be operations for the purposes of VAT.
Market price means a normal sale price at the same stage of marketing and on comparable terms and on an arm’s length basis.
When the evaluation of the provisions or supplies between two activities identified by a separate identification number is not deemed satisfactory by the Tax Administration, the latter may proceed to an evaluation as of right of the said provisions or supplies, with the burden being on the taxpayer to demonstrate that its initial evaluation corresponds to the market price.
All other provisions of the Mining Code and the General Tax Code apply with full force and effect.