Integrated Report of KGHM Polska Miedź S.A.
and the KGHM Polska Miedź S.A. Group
for 2020

5.2 Other taxes and charges

in PLN millions, unless otherwise stated

from 1 January 2020
to 31 December 2020

from 1 January 2019
to 31 December 2019
Basis for calculating tax Tax rate Presentation in the consolidated statement of profit or loss
Minerals extraction tax, of which 1 625 1 520 tax rate calculated for every reporting period * Minerals extraction tax in expenses by nature (note 4.1)

– copper

1 217 Amount of copper in produced concentrate, expressed in tonnes

– silver

303 Amount of silver in produced concentrate, expressed in kilograms
* In accordance with conditions specified by the Act dated 2 March 2012 on the minerals extraction tax and the Act dated 12 April 2019 on changing the Act on the minerals extraction tax, which decreased the tax rate by 15% since July 2019. Until 30 June 2019, the tax rate was calculated using the following formula: 0.033 x average copper price + (0.001 x average copper price)2,5. Since 1 July 2019, the tax rate has been calculated using the following formula: [(0.033 x average copper price + (0.001 x average copper price)2,5] x 85%.


The minerals extraction tax paid by the Parent Entity is calculated from the amount of copper and silver in produced concentrate and depends on the prices of these metals as well as on the USD/PLN exchange rate. The tax is accounted for under manufacturing costs of basic products and is not deductible for corporate income tax purposes.

Other taxes and charges, with a breakdown by geographical location, were as follows:

from 1 January 2020
to 31 December 2020
from 1 January 2019
to 31 December 2019
Poland 484 471
Real estate tax 234 224
Royalties 111 110
Excise tax 6 10
Environmental fees 18 23
Other taxes and charges 115 104
Other countries 78 63
Total 562 534

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