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KGHM Polska Miedź SAInvestment relief introduced in 2029 for copper mining; to reduce tax burden by PLN 1.15 bln
The investment relief introduced in 2029 for copper mining will reduce the tax burden by PLN 1.15 billion (EUR 269.1 mln). From mid-2029, entities involved in copper and silver mining will be able to deduct half of their investment expenditure, according to a draft amendment to the Tax Act on the Extraction of Certain Minerals published on Wednesday.
In total, the reduction in tax burdens on copper mining is estimated at PLN 10.05 billion (EUR 2.35 bln) over 10 years.
In the draft amendment to the Tax Act on the Extraction of Certain Minerals, the Ministry of Finance proposed that in 2026-2028, the coefficient of 0.85 in the formula applicable to taxing copper extraction during a boom in the metals market be reduced to 0.71 in 2026 and 0.64 in 2027-2028.
The starting point for calculating the coefficients for 2026-2028 was the average price of copper as at May 21, 2025, amounting to PLN 35,686 (EUR 8,350)/t, and the average annual copper extraction (in tonnes) assumed at the 2024 level.
However, from 2029, it will be possible to deduct part of the investment expenditure incurred by taxpayers from tax.
The proposed amendment provides for the introduction of a mechanism enabling a 50 percent deduction from the tax on the extraction of certain minerals of the amount of investment expenditure incurred by eligible entities in the field of copper and silver extraction.
However, in a given settlement period, the maximum deduction cannot exceed 40 percent of the tax calculated on the copper extracted in that month.
It is assumed that eligible investment expenditures incurred by entities from the date of entry into force of the act, i.e. from 2026, will be taken into account for the deduction in question.
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