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The State and any Local Government undertake that no Tax, duty, fee or other impost shall be imposed on the Company in respect of the Project or on income derived from the Project or on entities employed in the Project or in respect of any property held or thing acquired in furthering the Project or for any purpose authorized or contemplated by this Agreement other than:

(a) Royalty in accordance with the provisions of this Agreement;
(b) Subject to the provisions of this Agreement, customs duties and levies at the applicable rates pursuant to Applicable Law;
(c) Sales tax and capital gains tax under the tax Law;
(d) Subject to the provisions of this Agreement, income tax pursuant to Applicable Law;
(e) Subject to the provisions of this Agreement, value-added tax, or goods and services tax pursuant to the Tax Law;
(f) Property taxes in accordance with the provisions of this Agreement;
(g) Taxes, duties, fees or other imposts for specific services rendered on request or to the public or commercial enterprises generally, registration fees, license fees and any other Tax, duty, fee or other impost of a minor nature and generally applicable to businesses in the State and the generally applicable rent due in respect of any land rights granted or assigned to the Company;
(h) Local Government rates or Taxes not in excess of those generally applicable in the State; and
(i) Stamp duties, registration fees, license fees and any other Tax, duty, fee or other impost of a minor nature and generally applicable to businesses in the State.

Example 1
12.7 Other Taxes and Charges
Subject to Section 10.2 (Stabilization), Licensee shall not be subject to taxes, fees, or charges other than those listed in this Agreement, the Mining Proclamation, the Mining Tax Proclamation and Regulations; subject, however, to the following:

a) Licensee shall be subject to charges and fees for actual services rendered by governmental authorities upon written request or provided to the public or commercial enterprises generally; provided such charges and fees are reasonable and non discriminatory.
b) Licensee shall be subject to:

(i) taxes, fees, and charges of general application including stamp duties, immigration and registration fees, license fees, and other charges pertaining to the registration or operation of business organizations, of vehicles, aircraft, vessels and such other facilities and services for which registration or licensing is required by Law; and
(ii) taxes payable upon the local purchase or acquisition by Licensee of goods, materials, supplies, equipment, and services; provided that such fees and charges are at rates no higher than those generally applicable in [name of host country].

c) Dividend Tax.

(i) Licensee shall be subject to dividend withholding tax in accordance with Article [ ] of the Mining Tax Proclamation; provided, however, a dividend withholding tax shall not be imposed on net profits repatriated by Licensee.
(ii) All settlements of loans made by Licensee with banking and non-banking institutions and which are related to the License Area shall not be subject to a dividend tax or interest withholding tax.

d) Transfer Tax. Subject to Article [ ] of the Mining Tax Proclamation and Article [ ] of the Mining Proclamation, the transfer or assignment (without proceeds) by Licensee to

(i) an Affiliate, or (ii) a bank or other lending institution as security for a loan shall not be considered a taxable event for purposes of any tax, fee, or similar charge.

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

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