Total Tax Contribution

A study of the economic contribution mining companies make to public finances


The mining industry, perhaps more than most others, remits large amounts of non-income taxes to various levels of government in different forms. These non-income taxes are seldom highlighted in financial statements, leaving an incomplete picture of the contribution that mining companies make to public finances.

This second study for the mining sector uses PwC’s Total Tax Contribution (TTC) Framework to collect data on all taxes and other contributions to government, giving a wider view of the entire tax burden of an enterprise. Data was collected from 22 mining companies, that shared information on their taxes and other contributions paid to government, in 20 countries of operation, during their accounting year to 31 December 2008.

The study covers a turbulent period, which saw the advent of the global financial crisis and a fall in commodity prices. The results show that despite the downturn, mining companies continue to make a large economic contribution in their countries of operation. On average, taxes and contributions borne by mining companies are equivalent in size to 10.8% of their turnover. Importantly, corporate income tax represents only 40% of all the total taxes and contributions that these companies bear.

Mining companies are subject to intense scrutiny from government, civil society organisations and other stakeholders with regards to the taxes they pay. Using the PwC TTC framework, the study aims to bring greater transparency to the full contribution that mining companies make to public finances, and to the creation of prosperity and stability for the communities where they operate.