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mining tax formula South Africa

mining tax formula South Africa

Mining Tax - PwC South Africa

Mining Tax. Mining forms one of the leading industries in South Africa, playing a vital role in the economy. Due to the complexity of the South African tax laws and the impact thereof on the industry, its is necessary to have a thorough understanding of not only the tax legislation, but also the specific needs of the South

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South African gold mining taxation : An example of a ...

1984-12-1  RESOURCES POLICY December 1984 265 South African gold mining taxation Tax formula y = 60 - _360 y = 60 - _480 X X Profit:revenue ratio (x) 10% 10% Tax rate 24% 12% Profit:revenue ratio (x) 20% 20% Tax rate (y) 42% 36% Increase in tax rate 75% 200% Although the formula, given the parameter b, corresponds to the principles of a resource rent tax, the built-in progressive tax rate

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Gold tax formula is a rock solid way to rejuvenate

(The 2007 gold mining formula was Y=45-225/X where Y is the percent tax payable and X is the ratio of mining profit, after the deduction of all mining capital expenditure, to revenue from mining...

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SOUTH AFRICA - MINING AND PETROLEUM ROYALTIES -

2016-9-21  For refined mineral resources the formula to determine the percentage or rate (which has to be applied to the tax base) is: 0.5 + [EBIT / (gross sales in respect of refined mineral resources x 12.5)] x 100. For unrefined mineral resources the formula to determine the percentage or rate (which has to be applied to the tax base) is:

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THE ECONOMICS OF GOLD MINING TAXATION

2018-11-17  on a two-tier system. The nature of the gold mining tax formula encourages the mining of marginal gold ores. Firms that are involved in the mining of gold are subjected to a "tax tunnel", which is a tax free revenue portion. This is against the equity principle of taxation because it separates companies on the basis of what they

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Mining duties, royalties and taxes in South Africa -

2019-7-4  The mining royalty percentage is capped at 5 per cent for refined mineral resources and 7 per cent for unrefined mineral resources. The Royalty Act uses two variables to calculate the royalty ...

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South Africa: Tax implications for mining sector -

2021-6-21  What are the tax implications—in particular, for the mining sector—from the lockdown? Section 36(11)(b) of the Income Tax Act specifically provides that any expenditure incurred during any period of non-production, on development, general administration and management (including interest incurred on loans used for mining purposes) constitute a capital expenditure for tax

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Tax Solutions for Mining Taxation Services Deloitte ...

2021-6-25  Mining Tax. There is a special tax dispensation for the mining industry which is contained in Sections 15 and 36 of the Income Tax Act. Deloitte assist clients in optimising the deductions with a specific emphasis on capital expenditure. Tax Technology. We have developed a specific mining tax module for our corporate tax software solution, Corpsmart.

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Cryptocurrencies: Are you aware of the tax implications?

2021-5-10  While the size of the market remains unclear, Coinmarketcap gives a figure of $210 billion (about R2.95 trillion) for the global market, and approximately R6.5bn for the South African market.

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South African gold mining taxation : An example of a ...

Theoretically, a resource rent tax is neutral in that it does not influence the allocation of resources. However, the application of such fundamental principles in the tax formula of the South African gold mining industry negates the neutrality principle.

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Tax Solutions for Mining Taxation Services Deloitte ...

2021-6-25  Mining Tax. There is a special tax dispensation for the mining industry which is contained in Sections 15 and 36 of the Income Tax Act. Deloitte assist clients in optimising the deductions with a specific emphasis on capital expenditure. Tax Technology. We have developed a specific mining tax module for our corporate tax software solution ...

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2297. Mining and prospecting - SAICA

2018-2-2  2297. Mining and prospecting APRIL 2014 – ISSUE 175. This article deals with the taxation of mining and prospecting companies that are tax resident in South Africa and their non-tax resident shareholders. What is certain is that they are subject to taxes.

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Mineral and Petroleum Resource Royalty – South

2019-9-13  LAPD-Gen-G01 – Taxation in South Africa. LAPD-Gen-G02 – Guide for Tax Rates Duties Levies. LAPD-IT-G19 – Comprehensive Guide to Dividends Tax. LAPD-IT-G24 – Guide on Mutual Agreement Procedures. MPR03 – Return of Royalty – External Form. MPR1 – Mineral and Petroleum Resources Royalty Application Form – External Form

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A win for the mining industry: Decision regarding the ...

The formula presently applicable in s4 (2) is as follows: 0.5 + [earnings before interest and taxes/ (gross sales in respect of unrefined mineral resources x 9)] x 100. In terms of s4 (3) (b), the percentage determined in terms of the formula must not exceed 7%. Section 6

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Mining - KPMG South Africa

2021-6-26  KPMG’s Mining Tax team is also extensively involved in tax matters impacting the mining industry, for example the Davis Tax Committee’s evaluation of the mining tax regime in South Africa. On a regular basis, the team is requested to either facilitate or participate in public forums and discussions or to conduct interviews on topical issues.

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Tax investment boost for the mining sector in South

2018-10-29  Tax investment boost for the mining sector. Within the South African context, junior mining companies have been seen as too risky an investment by private equity firms, family offices, financial institutions and wealthy individuals. As a way to encourage investments in the mining sector, which is one of the largest employers in South Africa ...

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THE NEW SOUTH AFRICAN MINERAL ROYALTY

2021-3-26  South Africa, as the owner of its minerals, introduced the charging of mineral royalties targeting economic rents in 2010. The new royalty also promotes further

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Mining Royalties - ISBN: 0821365029

2016-7-10  Effective Tax Rates in South Africa 222 5.2 Employee Numbers, Tonnes Milled, and Average Grade Milled in South African Gold Mines 225 Tables 2.1 Unique Attributes of the Mineral Industry and the Tax Policy Response 17 2.2 Taxes Sometimes Levied on the Mining Industry, and Their Basis 32 2.3 Policy Objectives of Tax Types and Their Prevalence 33

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SA Mine - PwC South Africa

2015-8-12  Africa. We only included companies with a market capitalisation of more than R200 million, and we excluded companies with suspended listings. Section 9 contains a list of all mining companies included in the report. Our selection criteria excluded global mining companies Anglo American and BHP Billiton. Although both these companies have South ...

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How Cryptocurrency Is Taxed in South Africa TokenTax

South Africa crypto mining taxes. SARS tax treatment of crypto mining activity falls under both normal cash and barter transaction rules. Crypto miners are first taxed at the time they acquire the cryptocurrency in line with income taxes. According to SARS guidelines, “[a] cryptocurrency can be acquired through so called ‘mining.’

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2297. Mining and prospecting - SAICA

2018-2-2  2297. Mining and prospecting APRIL 2014 – ISSUE 175. This article deals with the taxation of mining and prospecting companies that are tax resident in South Africa and their non-tax resident shareholders. What is certain is that they are subject to taxes.

Get Price

Tax investment boost for the mining sector in South

2018-10-29  Tax investment boost for the mining sector. Within the South African context, junior mining companies have been seen as too risky an investment by private equity firms, family offices, financial institutions and wealthy individuals. As a way to encourage investments in the mining sector, which is one of the largest employers in South Africa ...

Get Price

South Africa: Mining tax incentives proposed amendment ...

2021-6-9  Only granting the mining tax incentives to the company owning the mining right may have unintended income tax From: Rea, Robert-WASH C To: Grams, John W; Valladares, Christine M Subject: aug 5 / need a PDF for South Africa Date: Wednesday, August 5, 2020 7:22:01 AM Attachments: image001.png image004.png From: ZA-FM KPMG Tax and Legal ...

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Income tax benefits available to the mining industry :

The history of mining and the current taxation legislation applicable to the mining sector in South Africa was briefly discussed and analysed to provide an understanding of this industry. Australia recently introduced new taxation legislation and incentive scheme for the mining sector, namely the Exploration Development Incentive, effective ...

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South Africa: Deductions Of Mining Capital

2012-12-21  The case of Armgold/Harmony Freegold Joint Venture (Pty) Ltd v CSARS (703/2011) [2012] ZASCA 152 dealt with the deduction of certain mining capital expenditure under subsections 36(7F) and 36(7E) of the Income Tax Act 58 of 1962 ("the Act") as well as the basis of calculation to be adopted where a mine of a taxpayer operates at a loss.

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Mining tax provisions have not kept up with the

2019-10-3  Mining tax provisions have not kept up with the industry. Court ruling highlights the need for amendments to the Income Tax Act. The definition of 'mining operations' needs to be clear since it ...

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SA Mine - PwC South Africa

2015-8-12  Africa. We only included companies with a market capitalisation of more than R200 million, and we excluded companies with suspended listings. Section 9 contains a list of all mining companies included in the report. Our selection criteria excluded global mining companies Anglo American and BHP Billiton. Although both these companies have South ...

Get Price

Corporate income taxes, mining royalties and other

2015-6-3  tax policy and the tax regime trend for mining operations is a dimension that may be hard to quantify, but is nevertheless relevant to a life of the mine analysis. Major challenges often lie in the administration of the rules and regulations by the tax authorities, rather than in the legislation itself. This summary provides

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A Minerals and Mining Policy for South Africa - Gov

2018-12-9  ii. Mining is an international business and South Africa has to compete against developed and developing countries to attract both foreign and local investment. Many mining projects in South Africa have tended to be unusually large and long term, requiring massive capital and entailing a high degree of risk. iii.

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Minerals and Mining Policy of South Africa: Green

2021-6-26  The Commission of Inquiry into Certain Aspects of the Tax Structure of South Africa (Katz Commission) is currently considering mining taxation and the taxation of mineral rights. In due course the Commission's findings should be considered in conjunction with the broad objectives of minerals and mining policy.

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Income tax benefits available to the mining industry :

The history of mining and the current taxation legislation applicable to the mining sector in South Africa was briefly discussed and analysed to provide an understanding of this industry. Australia recently introduced new taxation legislation and incentive scheme for the mining sector, namely the Exploration Development Incentive, effective ...

Get Price

South Africa: Mining tax incentives proposed amendment ...

2021-6-9  Only granting the mining tax incentives to the company owning the mining right may have unintended income tax From: Rea, Robert-WASH C To: Grams, John W; Valladares, Christine M Subject: aug 5 / need a PDF for South Africa Date: Wednesday, August 5, 2020 7:22:01 AM Attachments: image001.png image004.png From: ZA-FM KPMG Tax and Legal ...

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South Africa: Tax Court - SAFLII

2017-11-30  WHAT IS CONTRACT MINING [14] Van Blerk Mining Tax in South Africa [1] stated as follows: “It sometimes occurs especially in the case of open cast mining that the mine owner subcontracts all or a portion of the mining operations to a third party. For example a contracting arrangement could require a third party to use earthmoving equipment to ...

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Mining tax provisions have not kept up with the

2019-10-3  Mining tax provisions have not kept up with the industry. Court ruling highlights the need for amendments to the Income Tax Act. The definition of 'mining operations' needs to be clear since it ...

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South Africa's ANC holds debates on mining tax reforms

South Africa's ANC to debate 50% mining tax. By Mike Cohen and Andres R. Martinez. Bloomberg. 26 June 2012. South Africa's ruling African National Congress may endorse plans to raise mining taxes and increase state control over the economy as President Jacob Zuma shores up

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Deductions of mining capital expenditure under

2012-12-19  Tax law. Section 36(7E) of the Act limits the deduction of the aggregate of capital expenditure determined under section 36(7C) of the Act in a particular year of assessment in relation to any mine or mines to what is referred to as the "gross mining taxable income” derived by the taxpayer from mining.

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Corporate income taxes, mining royalties and other

2015-6-3  tax policy and the tax regime trend for mining operations is a dimension that may be hard to quantify, but is nevertheless relevant to a life of the mine analysis. Major challenges often lie in the administration of the rules and regulations by the tax authorities, rather than in the legislation itself. This summary provides

Get Price

Carbon tax: Strong medicine for the mining industry

2019-5-23  This article first appeared in Mining Review Africa Issue 4, 2019 Read the full digimag here or subscribe to receive a print copy here. For the most part, the tax has not been well received by industry. For example, the Minerals Council South Africa

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A Minerals and Mining Policy for South Africa - Gov

2018-12-9  ii. Mining is an international business and South Africa has to compete against developed and developing countries to attract both foreign and local investment. Many mining projects in South Africa have tended to be unusually large and long term, requiring massive capital and entailing a high degree of risk. iii.

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