Countries › Peru › Guide › 12. Sectors › Mining royalty and Impuesto Especial a la Minería in Peru: margin based scales, the 1 percent of sales floor, quarterly payment and deductibility
Mining royalty and Impuesto Especial a la Minería in Peru: margin based scales, the 1 percent of sales floor, quarterly payment and deductibility
Last verified: 2026-10-28 · Status: Stable
Every holder or assignee of a mining concession pays a quarterly regalía minera on operating profit, using a cumulative progressive scale whose marginal rates run from 1 percent (margins under 10 percent) to 12 percent (margins above 80 percent), with a floor of 1 percent of quarterly sales. Metallic miners also pay the Impuesto Especial a la Minería, a quarterly tax on the same operating profit at marginal rates from 2 percent to 8.4 percent, administered by SUNAT. Both are paid within the last twelve business days of the second month after each quarter and both are deductible for income tax when paid. Companies whose projects hold mining stability contracts pay instead a quarterly Gravamen Especial a la Minería under agreements with the State, net of royalties, and small producers and artisanal miners pay 0 percent of both the royalty and the special tax.
USD figures use S/ 3.452 per US dollar, the banking system selling rate published by the Superintendencia de Banca, Seguros y AFP for 27 October 2026, from the Banco Central de Reserva del Perú statistics series PD04640PD. UIT based amounts use the 2026 UIT of S/ 5,500 set by Decreto Supremo Nº 301-2025-EF, as cited in SUNAT Resolución de Superintendencia Nº 000016-2026/SUNAT. Conversions are for orientation only.
Key facts
| Mining royalty, lowest marginal rate (margin below 10%) | 1.00 %Ley 28258 Annex as amended by Ley 29788, as of 2026-10-28 · in force |
|---|---|
| Mining royalty, top marginal rate (margin above 80%) | 12.00 %Ley 28258 Annex as amended by Ley 29788, as of 2026-10-28 · in force |
| Mining royalty floor, share of quarterly sales | 1 %Ley 28258 art. 4.3 as amended by Ley 29788, as of 2026-10-28 · in force |
| Impuesto Especial a la Minería, lowest marginal rate | 2.00 %Ley 29789 Annex, as of 2026-10-28 · in force |
| Impuesto Especial a la Minería, top marginal rate (margin above 85%) | 8.40 %Ley 29789 Annex, as of 2026-10-28 · in force |
| Impuesto Especial a la Minería for small producers and artisanal miners | 0 %Ley 29789 art. 5.3, as of 2026-10-28 · in force |
| Mining royalty for small producers and artisanal miners | 0 %Ley 28258 art. 4.4 as amended by Ley 29788, as of 2026-10-28 · in force |
The rule
1. The royalty is computed per quarter on operating profit as defined in the law (sales less cost of sales and operating expenses). The operating margin is quarterly operating profit divided by quarterly sales, rounded to two decimals. An effective rate is then derived from the cumulative progressive scale in the Annex and applied to operating profit. The amount payable is the higher of that result and 1 percent of the quarter's sales.
Cost to do it: Royalty of 1 to 12 percent marginal on operating profit; minimum 1 percent of quarterly sales. No filing fee.
Example: A miner with quarterly sales of S/ 200,000,000 and operating profit of S/ 60,000,000 has a 30.00 percent margin. The scale gives an effective rate of 2.25 percent, or S/ 1,350,000, which is below the floor of S/ 2,000,000, so it pays S/ 2,000,000. / The same quarter is about US$57,937,428 of sales and US$17,381,228 of operating profit; the royalty due is the floor, about US$579,374.Ley Nº 28258, Ley de Regalía Minera, art. 4 as replaced by Ley Nº 29788 (El Peruano 28 September 2011), Art. 4.1 to 4.3 and Annex, 2011-09-28 official text · verified 2026-10-28 · changed: Ley Nº 29788 replaced the original royalty on the value of concentrate sales with this margin based scale and the 1 percent of sales floor, in force from 1 October 2011, the first day of the month after publication (second final provision).
Cost to do it: Royalty of 1 to 12 percent marginal on operating profit; minimum 1 percent of quarterly sales. No filing fee.
Example: A miner with quarterly sales of S/ 200,000,000 and operating profit of S/ 60,000,000 has a 30.00 percent margin. The scale gives an effective rate of 2.25 percent, or S/ 1,350,000, which is below the floor of S/ 2,000,000, so it pays S/ 2,000,000. / The same quarter is about US$57,937,428 of sales and US$17,381,228 of operating profit; the royalty due is the floor, about US$579,374.Ley Nº 28258, Ley de Regalía Minera, art. 4 as replaced by Ley Nº 29788 (El Peruano 28 September 2011), Art. 4.1 to 4.3 and Annex, 2011-09-28 official text · verified 2026-10-28 · changed: Ley Nº 29788 replaced the original royalty on the value of concentrate sales with this margin based scale and the 1 percent of sales floor, in force from 1 October 2011, the first day of the month after publication (second final provision).
2. Small producers and artisanal miners, as defined in the mining law, pay a royalty of 0 percent.
Cost to do it: No royalty while the producer keeps small producer or artisanal status (see the concession fee and size limits on the mining overview page).
Example: A small producer extracting 300 tonnes a day under its small producer certificate pays S/ 0 royalty in the quarter, whatever its margin. / US$0 royalty for the same small producer; the fee and income tax still apply.Ley Nº 28258 as amended by Ley Nº 29788, Art. 4.4, 2011-09-28 official text · verified 2026-10-28
Cost to do it: No royalty while the producer keeps small producer or artisanal status (see the concession fee and size limits on the mining overview page).
Example: A small producer extracting 300 tonnes a day under its small producer certificate pays S/ 0 royalty in the quarter, whatever its margin. / US$0 royalty for the same small producer; the fee and income tax still apply.Ley Nº 28258 as amended by Ley Nº 29788, Art. 4.4, 2011-09-28 official text · verified 2026-10-28
3. The royalty is declared and paid each quarter within the last twelve business days of the second month after the quarter, in the form set by SUNAT. Late payment bears the interest set by the regulation, and non compliance triggers the sanctions in the regulation. The amount actually paid is deductible as an expense for income tax in the year it is paid.
Cost to do it: Compliance cost is internal (quarterly cost accounting by mineral). Interest runs on late payments.
Example: The royalty for July to September 2026 falls due within the last twelve business days of November 2026; paid then, it reduces taxable income for 2026. / A US$579,374 royalty paid in November 2026 reduces 2026 taxable income by the same amount, worth about US$170,915 of income tax at 29.5 percent.Ley Nº 28258 as amended by Ley Nº 29788, Art. 6 and art. 11, 2011-09-28 official text · verified 2026-10-28
Cost to do it: Compliance cost is internal (quarterly cost accounting by mineral). Interest runs on late payments.
Example: The royalty for July to September 2026 falls due within the last twelve business days of November 2026; paid then, it reduces taxable income for 2026. / A US$579,374 royalty paid in November 2026 reduces 2026 taxable income by the same amount, worth about US$170,915 of income tax at 29.5 percent.Ley Nº 28258 as amended by Ley Nº 29788, Art. 6 and art. 11, 2011-09-28 official text · verified 2026-10-28
4. The Impuesto Especial a la Minería applies to operating profit from sales of metallic mineral resources, per quarter (January to March, April to June, July to September, October to December). It uses its own cumulative progressive scale, with marginal rates from 2 percent for margins under 10 percent to 8.4 percent for margins above 85 percent, applied through an effective rate in the same way as the royalty. There is no floor based on sales, and small producers and artisanal miners pay 0 percent. The tax is declared and paid within the last twelve business days of the second month after the quarter and is collected and administered by SUNAT. Amounts actually paid are deductible for income tax in the year paid.
Cost to do it: Tax of 2 to 8.4 percent marginal on operating profit from metallic minerals, paid quarterly to SUNAT.
Example: On the same S/ 60,000,000 quarterly operating profit at a 30.00 percent margin the effective rate is 2.67 percent, so the tax is S/ 1,602,000. / About US$464,079 of special tax on about US$17,381,228 of operating profit.Ley Nº 29789, Ley que crea el Impuesto Especial a la Minería (El Peruano 28 September 2011), Art. 1, art. 4 to 7, art. 9 and Annex, 2011-09-28 official text · verified 2026-10-28
Cost to do it: Tax of 2 to 8.4 percent marginal on operating profit from metallic minerals, paid quarterly to SUNAT.
Example: On the same S/ 60,000,000 quarterly operating profit at a 30.00 percent margin the effective rate is 2.67 percent, so the tax is S/ 1,602,000. / About US$464,079 of special tax on about US$17,381,228 of operating profit.Ley Nº 29789, Ley que crea el Impuesto Especial a la Minería (El Peruano 28 September 2011), Art. 1, art. 4 to 7, art. 9 and Annex, 2011-09-28 official text · verified 2026-10-28
5. The Gravamen Especial a la Minería applies to mining companies that sign an agreement with the State for projects covered by mining stability contracts (Contratos de Garantías y Medidas de Promoción a la Inversión) still in force. It is a quarterly levy that arises at the close of each quarter and is computed by applying to quarterly operating profit an effective rate set from the operating margin under Annex II of the law. Royalties paid under Ley 28258 and contractual mining royalties falling due after the agreement is signed are deducted from it, and the amount actually paid is deductible for income tax.
Cost to do it: Quarterly levy under the Annex II scale of Ley 29790, net of royalties paid; terms are set in each company's agreement with the State.
Example: A copper mine under a stability contract that signed a Ley 29790 agreement computes the Gravamen each quarter and subtracts the royalty paid for that quarter before paying the balance. / Before buying into a Peruvian mine, check whether it pays the special tax or the Gravamen under an agreement, since the quarterly cash cost differs.Ley Nº 29790, Ley que establece el marco legal del Gravamen Especial a la Minería (El Peruano 28 September 2011), Art. 2 and art. 3, 2011-09-28 official text · verified 2026-10-28
Cost to do it: Quarterly levy under the Annex II scale of Ley 29790, net of royalties paid; terms are set in each company's agreement with the State.
Example: A copper mine under a stability contract that signed a Ley 29790 agreement computes the Gravamen each quarter and subtracts the royalty paid for that quarter before paying the balance. / Before buying into a Peruvian mine, check whether it pays the special tax or the Gravamen under an agreement, since the quarterly cash cost differs.Ley Nº 29790, Ley que establece el marco legal del Gravamen Especial a la Minería (El Peruano 28 September 2011), Art. 2 and art. 3, 2011-09-28 official text · verified 2026-10-28
| Operating margin band | Royalty marginal rate | Special tax marginal rate |
|---|---|---|
| 0 to 10% | 1.00% | 2.00% |
| 10 to 15% | 1.75% | 2.40% |
| 15 to 20% | 2.50% | 2.80% |
| 20 to 25% | 3.25% | 3.20% |
| 25 to 30% | 4.00% | 3.60% |
| 30 to 35% | 4.75% | 4.00% |
| 35 to 40% | 5.50% | 4.40% |
| 40 to 45% | 6.25% | 4.80% |
| 45 to 50% | 7.00% | 5.20% |
| 50 to 55% | 7.75% | 5.60% |
| 55 to 60% | 8.50% | 6.00% |
| 60 to 65% | 9.25% | 6.40% |
| 65 to 70% | 10.00% | 6.80% |
| 70 to 75% | 10.75% | 7.20% |
| 75 to 80% | 11.50% | 7.60% |
| 80 to 85% | 12.00% | 8.00% |
| Above 85% | 12.00% | 8.40% |
Cumulative progressive scales by quarterly operating margin: mining royalty (Ley 28258 Annex as amended by Ley 29788) and Impuesto Especial a la Minería (Ley 29789 Annex), gazette text of 28 September 2011
| Item | 30% margin | 60% margin |
|---|---|---|
| Operating profit | S/ 60,000,000 | S/ 120,000,000 |
| Royalty effective rate | 2.25% | 4.44% |
| Royalty from scale | S/ 1,350,000 | S/ 5,328,000 |
| 1% of sales floor | S/ 2,000,000 | S/ 2,000,000 |
| Royalty payable | S/ 2,000,000 | S/ 5,328,000 |
| Special tax effective rate | 2.67% | 3.83% |
| Special tax payable | S/ 1,602,000 | S/ 4,596,000 |
| Total, soles | S/ 3,602,000 | S/ 9,924,000 |
| Total, US dollars | US$1,043,453 | US$2,874,855 |
| Total as share of operating profit | 6.00% | 8.27% |
Worked quarter: royalty and special tax at two margins (sales S/ 200 million)
Worked example
- Low margin quarter: sales S/ 200,000,000, operating profit S/ 60,000,000 (30 percent margin). Royalty: the scale gives S/ 1,350,000 but the 1 percent floor of S/ 2,000,000 applies. Special tax: S/ 1,602,000. Total S/ 3,602,000, about US$1,043,453, both deductible for income tax.
- High margin quarter: same sales, operating profit S/ 120,000,000 (60 percent margin). Royalty effective rate 4.44 percent, so S/ 5,328,000; special tax effective rate 3.83 percent, so S/ 4,596,000. Total S/ 9,924,000, about US$2,874,855, or 8.27 percent of operating profit.
- How the effective rate works at a 30 percent margin: royalty bands give 10 x 1% + 5 x 1.75% + 5 x 2.5% + 5 x 3.25% + 5 x 4% = 0.675 points, divided by 30 = 2.25 percent; special tax bands give 10 x 2% + 5 x 2.4% + 5 x 2.8% + 5 x 3.2% + 5 x 3.6% = 0.80 points, divided by 30 = 2.67 percent.
Step by step
- Set up cost accounting that yields quarterly sales, cost of sales and operating expenses per concession and mineral, since both levies run on quarterly operating profit (Ley 28258 art. 4; Ley 29789 art. 4).
- Each quarter compute the margin to two decimals, the effective rates from both Annex scales, and compare the royalty result with 1 percent of sales.
- Declare and pay both within the last twelve business days of the second month after the quarter (Ley 28258 art. 6; Ley 29789 art. 6); check SUNAT's monthly schedule on /calendar/.
- If the project is covered by a stability contract and a Ley 29790 agreement, compute the Gravamen under Annex II of that law and deduct the royalties paid (Ley 29790 art. 3 b).
- Book the amounts actually paid as deductible expenses for the income tax year of payment (Ley 28258 art. 11; Ley 29789 art. 9).
Common traps
- The 1 percent of sales floor bites in low price or high cost quarters: a loss making quarter still owes 1 percent of sales as royalty (Ley 28258 art. 4.3).
- The scales are cumulative: the top marginal rate is not the effective rate. Applying 12 percent to all profit at an 81 percent margin overstates the royalty.
- Deductibility follows payment, not accrual: a royalty for the fourth quarter paid in February is deductible in the year it is paid (Ley 28258 art. 11; Ley 29789 art. 9; Ley 29790 art. 3 c).
- The special tax covers metallic minerals only; the royalty covers metallic and non metallic minerals, so a limestone or phosphate producer pays the royalty but not the special tax.
Sources
- Ley Nº 29788 amending Ley 28258 (royalty), El Peruano 28 September 2011, Congress archive
- Ley Nº 29789, Impuesto Especial a la Minería, El Peruano 28 September 2011, Congress archive
- Ley Nº 29790, Gravamen Especial a la Minería, Congress archive
- BCRP statistics API, series PD04640PD (SBS selling rate)
Related pages
- sectors/mining-energy-and-key-sectors
- sectors/mine-closure
- investing/mining-stability-contracts
- taxes/corporate-income-tax
- taxes/tax-incentives
- /country/peru/
- /calendar/
- Live dashboard
Related: Peru country profile · live dashboard · central bank and release calendar · our posts on X
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