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(a) Prior to the Date of Commencement of Commercial Production, the State must exempt from any applicable Taxes on the State – sourced income derived by all expatriate employees of the Company engaged in developing the Project under this Agreement and such employees are not, during such period, entitled to any allowances under the Tax Law.
(b) After the Date of Commencement of Commercial Production, all expatriate employees of the Company and its contractors subcontractors and agents, engaged in Mining Operations under this Agreement are subject to any applicable Taxes that are generally in effect in the the State, but only on their the State – sourced income from those operations, on a non-discriminatory basis, and whether or not paid in the State.

Example 1
(b) Withholding Taxes.
Company shall comply with all Laws in effect from time to time requiring the withholding of taxes on payments or disbursements made to any Person, whether or not resident or domiciled in the Country, including physical persons or entities related to, or employed by, Company or any of its Affiliates, with the following modifications:

[…]

(ii) Before the commencement of production, all payments for technical services to Persons, including Affiliates, not resident in the [COUNTRY] for tax purposes, shall be exempt from all Laws requiring the withholding of taxes. This exemption extends to the recipients of such payments. For purposes of this Section [X], technical services means any and all services, except management and administrative services as defined by Section [X]. For purposes of this Section [X], Uncompleted Technical Services shall be treated as performed before the commencement of production in applying the exemption from withholding under this Section [X]. Uncompleted Technical Services means technical services that relate to construction of any particular plant or facility contemplated by the Feasibility Study that are performed before the end of the third calendar month following the calendar month during which production of Minerals begins within the particular plant or facility on a regular and continuing basis.
(iii) After the commencement of production, except with respect to Uncompleted Technical Services, the following payments shall be subject to withholding at rates equal to the lesser of those provided by the Laws (including any applicable income tax treaty) at the Effective Date or those in effect at the time of withholding (also including any applicable income tax treaty):

(A) Payments for services by residents of Country;
(B) Payments for renting or leasing any kind of personal or real property;
(C) Prizes of the National Lottery; and
(D) Payments to non-residents and non-domiciliaries of Country. […]

Example 2
In lieu of the withholding rates provided by Applicable Law for non-residents and as provided by the Revenue Code for residents, the Company shall withhold tax on payments made to non-residents and residents at the following rates for the first 12 Years:

(i) Dividends, 0 percent.
(ii) Interest, 5 percent.
(iii) Payments for services, 5 percent.

Thereafter withholding shall be at the rates provided by Applicable for non-residents and as otherwise provided by Applicable Law for residents.

Example 3
Without affecting Clause [X] and the rights of the Investor to avail itself of applicable double tax treaties, the Parties agree that, for the purposes of tax required to be withheld by the Investor under Corporate Income Tax Law, the following income of a non-resident taxpayer, but which are earned in Country, shall be taxed when transferred to the non-resident taxpayer at the following rates:

2.8.1. Loan interest and payment for issuing a guarantee shall be taxed at the rate of 20% (twenty percent).
2.8.2. Income from royalties, income from interest on financial leases, payments for administrative expenses, rent payments, lease payments and income from use of tangible and non-tangible assets shall be taxed at the rate of 20% (twenty percent).
2.8.3. Income from goods sold, work performed and services provided within the territory of Country shall be taxed at the rate of 20% (twenty percent).

Example 4
The Parties agree that, for the purposes of tax required to be withheld by the Investor under Article [x] of the Corporate Income Tax Law, income of a non-resident taxpayer from Management Services Payments, but which is earned in Country, shall be taxed when transferred to the non-resident taxpayer at the rate of 20% (twenty percent).

REFER TO MMDA DISCLAIMERS AND MMDA USER’S GUIDE
PRIOR TO ANY USE OF THIS DOCUMENT.

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