Taxes
Taxes are levies, duties, and other charges that mining operations must pay to local, regional, or national governments. This could also include the management of royalties owed for extracting resources.
In MineMarket, tax configuration can be added to sales, purchase, freight, service and finance contracts; and to cost templates, costs and budgeted costs.
See:
- Specify a Tax for a Set of Contract Terms
- Specify a Tax for a Service, Freight or Finance Contract
- Costs and Service Charges
- Cost Templates
Tax Basis
If Tax Determination is by:
- Percentage—Basis can be selected from:
- Invoice Total—Tax is calculated with the formula Invoice Value * Tax %
- Payable Total—Tax is calculated with the formula Payable Amount * Tax %
- Incremental Value—Tax is calculated with the formula (Invoice Value – Previous Invoice Value ) * Tax %
- Value Per Mass—Basis can be selected from:
- Gross Mass—Wet mass of the material
- Net Mass—Dry mass of the material
Examples: The following examples assume that in the set of contract terms, Payment Term Concept is:
- Total Amount for the Payable Total and Invoice Total examples
- Net Amount Before Adding Tax for the Incremental Value example
The combination of Payment Term Concept = Net Amount Before Adding Tax and Tax Basis = Incremental Basis makes the maximum tax payable in the provisional invoice.
Provisional Invoice
| Basis | Invoice Value | Payable Percentage | Payable Amount | Tax Formula | Tax Formula | Tax Value | Total Tax Value | Total Due Amount |
|---|---|---|---|---|---|---|---|---|
| Payable Total | 1000 | 90% | 900 | Payable Amount * Tax % | 900 * 10% | 90 | 90 | 990 |
| Invoice Total | 1000 | 90% | 900 | Invoice Value * Tax % | 1000 * 10% | 100 | 100 | 990 |
| Incremental Value | 1000 | 90% | 900 | (Invoice Value – Previous Invoice Value) * Tax % | (1000 – 0) * 10% | 100 | 100 | 1000 |
Final Invoice
| Basis | Invoice Value | Payable Percentage | Payable Amount | Tax Formula | Tax Formula | Tax Value | Total Tax Value | Total Due Amount |
|---|---|---|---|---|---|---|---|---|
| Payable Total | 1200 | 100% | 300 | Payable Amount * Tax % | 300 * 10% | 30 | 120 | 330 |
| Invoice Total | 1200 | 100% | 300 | Invoice Value * Tax % | 1200 * 10% | 120 | 120 | 330 |
| Incremental Value | 1200 | 100% | 300 | (Invoice Value – Previous Invoice Value) * Tax % | (1200 – 1000) * 10% | 20 | 120 | 320 |
Tax Decimals and Rounding
Rounding rules are applied to taxes by specifying the number of decimal places used for tax values and the rounding method.
| Rounding Method | C# Function Name | Calculated Tax Value | Rounded to 1 Decimal Place | Rounded to 2 Decimal Places | Rounded to 3 Decimal Places |
|---|---|---|---|---|---|
| Round | MidpointRounding.AwayFromZero | 1.9455 | 1.9 | 1.95 | 1.946 |
| Round Up | Math.Ceiling | 1.9455 | 2.0 | 1.95 | 1.946 |
| Round Down | Math.Floor | 1.9455 | 1.9 | 1.94 | 1.945 |
Video
A Datamine consultant recorded this video about taxes in MineMarket.
