Bulk Explosives - Availability and Application for Small Users

For tax purposes a mining company is a New Zealand company whose principal source of income is from the business of mining, or exploring for certain specified minerals in New Zealand. New Zealand tax law distinguishes between a non-resident mining operator and a mining company, with the only major difference in tax treatment being the corporate tax rates. New Zealand mining companies are taxed at 28 per cent, whereas non-resident mining operators are taxed at 33 per cent of taxable income. These provisions also apply to the petroleum mining industry. Individuals who carry on the business of mining are also specifically defined in the Act. They are termed as 'resident mining operators'. Non-resident mining operators are non-residents of New Zealand who carry on mining ventures as a business in New Zealand. Mining ventures are defined as the exploring, searching and mining of specified minerals, including development work carried out for profits. Similar provisions apply to the petroleum mining sector. Specified minerals are defined in the Income Tax Act 1976 ('the Act') and while no useful purpose is obtained by listing them in the paper, they include a larger number of industrial and commercial minerals. The Minister of Finance is also empowered to add to the list by publishing his determination in the Gazette.