“The planned act in the long term is to enable copper mining taxpayers and potential investors to create space for investing in mining projectsand in the case of entities currently operating on the market to facilitate the development of operations by leaving additional funds ” – it was written in the justification for a project prepared by the Ministry of Finance published on the pages of the Government Legislation Center.
As indicated, the proposed changes include, among others At the reduction in the years 2026-2028, the ratio in the formula that is used to calculate the tax rate for a ton of copper excavated.
Instead of a 0.85 coefficient will be 0.71
“The change involves the removal of 0.85 in this formula. The pattern will apply from January 1, 2029. In the years 2026-2028, episodic provisions will apply […] reducing the tax rate for a ton of copper excavated ” – it was written in the justification.
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These episodic provisions assume that In 2026 “in the current pattern, the number 0.85 is replaced by 0.71which is to reduce tax burdens for copper extraction in 2026 by about PLN 500 million. ” The number 0.85 “is replaced by 0.64which is to reduce tax burdens from copper extraction in 2027 and 2028 by about PLN 750 million (every year) “.
For comparison, KGHM in 2023-2024 paid PLN 3.5 billion in this tax.
Investment discounts in copper tax
In addition, the project proposes to introduce a mechanism that will allow tax deduction of some of the investment outlays incurred by taxpayers, with this mechanism to enter into force from 2029.
“The added provision is to enable taxpayers making copper mining Tax deduction of some of the qualified investment outlays incurred to the statutory threshold (50 percent of qualified investment outlays incurred). The recipe is the pillar of the so -called investment allowance, i.e. provisions aimed at enabling taxpayers to deduct from tax some expenditure incurred for investments in the area of copper mining, so as to create a favorable environment for the development of this industry in Poland ” – it was written.
It indicates that the qualified investment outlays would include those that are incurred on Searching or recognition of copper and silver deposits, Copper and silver extraction or Storage of mining waste created in connection with the search, or recognition, as well as extracting deposits containing copper as well as silver or extraction of copper and silver. The qualified investment outlays will also include Expenses for acquisition, production or improvement (reconstruction, extension, modernization or reconstruction) of a fixed asset and expenditure incurred for the purchase or production of intangible assets. The amount of deduction is to be limited.
“[…] The taxpayer may deduct from a tax period in a given monthly settlement period, which was calculated from copper excavated this month, 50 percent qualified investment outlays incurredwith the deduction of it It cannot exceed 40 percent. tax calculated from copper excavated this month” – statement was given.
The project proposes that the possibility of deducting investment outlays can be used by entities who have been granted concessions for the search or recognition of copper and silver deposits, or concessions for copper and silver mining, but which in connection with the licenses granted do not extract copper and silver yet. Such entities will have to keep books and record books, thanks to which – as stated in the justification – it will be possible to “accumulate 50 % of qualified investment outlays incurred in the period from the date of entry into force of the Act to the day preceding the day on which these entities will become a taxpayer of this tax.”
“In its essence, the provision is to guarantee that the investment relief can be used in the future also by those entities that do not yet conduct activities in the field of copper extraction in Poland (they are not a taxpayer in this respect), but will incur significant expenditure from the date of entry into force of the Act, necessary for copper extraction in the future” – it was written in the justification to the project.
