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INCOME TAXES:

6 Months Ended

Jun. 30, 2021

NOTE 4 — INCOME TAXES:

The income tax provision and the effective income tax rate for the first six months of 2021 and 2020 consisted of (in millions):


	2021			2020
Statutory income tax provision	$	956.4		$	406.8
Peruvian royalty		38.9			4.3
Mexican royalty		107.9			21.4
Peruvian special mining tax		52.0			13.7
Total income tax provision	$	1,155.2		$	446.2

Effective income tax rate		40.6	%		48.2	%

These provisions include income taxes for Peru, Mexico and the United States. The Mexican royalty, the Peruvian royalty and the Peruvian special mining tax are included in the income tax provision. The decrease in the effective income tax rate in 2021 compared to the same period in 2020 was primarily attributable to a movement in exchange gains and losses from the strong depreciation of the Mexican peso against the U.S. dollar in 2020.

Peruvian royalty and special mining tax: The Company has accrued $65.4 million and $16.7 million of royalty charge in the first six months of 2021 and 2020, respectively, of which $38.9 million and $4.3 million were included in income taxes in 2021 and 2020, respectively.

The Company has accrued $52.0 million and $13.7 million of special mining tax as part of the income tax provision for the first six months of 2021 and 2020, respectively.

Mexican mining royalty: The Company has accrued $107.9 million and $21.4 million of royalty taxes as part of the income tax provision for the first six months of 2021 and 2020, respectively.

Accounting for uncertainty in income taxes: The Company effectively settled the 2014 through 2016 IRS audit on April 14, 2021. The decrease in unrecognized tax benefits from the audit settlement had no material effect on the Company’s financial statements.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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