2025-07-23 18:36
publication
2025-07-23 18:36
From mid -2029, entities dealing with copper and silver mining will be able to deduct half of the investment outlays – according to the draft amendment to the Act on the extraction of some minerals published on Wednesday.
“The planned act in the long term is to enable copper taxpayers and potential investors to create a space for investing in mining projects, and in the case of entities currently operating on the market to facilitate the development of activities by leaving additional funds at their disposal,” we read in the justification for the project published by the Ministry of Finance published on the pages of the Government Center of Legislation.
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.
“The change consists in removing the number of 0.85 in this formula. The pattern will apply from January 1, 2029. In the years 2026-2028, episodic provisions (…) reducing the tax rate for the ton of the mined copper will apply,” reads in the justification.
These episodic provisions assume that in 2026 “in the current formula, number 0.85 is replaced by 0.71, which is to reduce tax burden due to copper mining in 2026 by about PLN 500 million.” In turn, in the years 2027 and 2028, the number 0.85 currently entered in the formula “is replaced by 0.64, which is to reduce tax burdens from copper mining in 2027 and 2028 by about PLN 750 million (annually).”
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 extraction of the tax deduction of some of the eligible investment outlays to a statutory threshold (50 % A favorable environment for the development of this industry in Poland, “we read in the justification.
It indicates that qualified investment outlays would include those that are incurred or recognized by copper and silver, copper and silver extraction or storage of mining waste resulting in connection with searching or recognition, as well as extraction of copper and silver and production 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 has been calculated from copper excavated this month, 50 percent of eligible investment outlays incurred, while this deduction may not exceed 40 percent of tax calculated from copper emitted in this month,” said in the justification.
The project proposes that the possibility of deducting investment outlays can be used by entities which have been granted concessions for the search or recognition of copper -containing deposits or concessions for copper and silver extraction, but which in connection with the licenses granted do not yet extract copper and silver. Such entities will have to keep accounting 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 mining 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,” reads in the justification to the draft. (PAP)
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