Page 252 - Juta's Indirect Tax

s 1 MINERAL AND PETROLEUM RESOURCES ROYALTY ACT 28 OF 2008 s 5
(b) . . .
[Para. (b) amended by s. 98 (1) (d) of Act 17 of 2009 and
deleted by s. 130 (1) (b) of Act 7 of 2010.]
(c) the consumption, theft, destruction or loss of a mineral resource, other than by way of aring or other liberation into the atmosphere during exploration or
production,
if that mineral resource has not previously been disposed of, consumed, stolen, destroyed or lost;
[De nition of ‘transfer’ amended by s. 130 (1) of Act 7 of 2010.]
‘unre ned mineral resource’ means a mineral resource—
(a) listed solely in Schedule 2; or
(b) listed in Schedule 1 and Schedule 2 that has not
been re ned to or beyond the condition speci ed in
Schedule 1 for that mineral resource.
(2) Unless the context indicates otherwise, a word or
expression to which a meaning has been assigned in the Administration Act bears that meaning for purposes of this Act. [Date of commencement of s. 1: 1 November 2009.]
2 Imposition of royalty
A person must pay a royalty for the bene t of the National Revenue Fund in respect of the transfer of a mineral resource extracted from within the Republic.
[S. 2 substituted by s. 131 (1) of Act 7 of 2010.]
3 Determination of royalty
(1) The royalty mentioned in section 2 in respect of the transfer of a re ned mineral resource is determined by multiplying the gross sales of the extractor in respect of that mineral resource during the year of assessment by the percentage determined in accordance with the formula in section 4 (1).
(2) The royalty mentioned in section 2 in respect of the transfer of an unre ned mineral resource is determined by multiplying the gross sales of the extractor in respect of that mineral resource during the year of assessment by the percentage determined in accordance with the formula in section 4 (2).
4 Royalty formulae
(1) The percentage mentioned in section 3 (1) is—
0.5 + [earnings before interest and taxes/(gross sales in respect of re ned mineral resources × 12.5)] × 100.
(2) The percentage mentioned in section 3 (2) is—
0.5 + [earnings before interest and taxes/(gross sales in respect of unre ned mineral resources × 9)] × 100.
(3) (a) The percentage determined in terms of subsection (1) must not exceed 5 per cent.
(b) The percentage determined in terms of subsection (2) must not exceed 7 per cent.
5 Earnings before interest and taxes
(1) For purposes of the formula in section 4 (1), ‘earnings before interest and taxes’ in respect of a year of assessment means the aggregate of—
(a) the gross sales of the extractor during that year in
is included in the income of the extractor during that year of assessment—
(i) as a recoupment in terms of any provision of that Act; or
(ii) in terms of paragraph (j) of the de nition of ‘gross income’ in section 1 of that Act,
[Para. (b) substituted by s. 98 (1) (a) of Act 17 of 2009.] less any amount which in terms of that Act—
(i) is deductible from the income of the extractor during that year of assessment in respect of assets used or expenditure incurred to win, recover and develop those re ned mineral resources to the condition speci ed in Schedule 1 for those mineral resources; or
(ii) would have been deductible from the income of the extractor during any year of assessment in respect of assets used or expenditure incurred to win, recover and develop those re ned mineral resources had those mineral resources been developed to the condition speci ed in Schedule 1 for those mineral resources.
[Sub-s. (1) amended by s. 98 (1) (b) of Act 17 of 2009 and by s. 132 (1) (a) of Act 7 of 2010.]
(2) For purposes of the formula in section 4 (2), ‘earnings before interest and taxes’ in respect of a year of assessment means the aggregate of—
(a) the gross sales of the extractor during that year in
respect of unre ned mineral resources; and
(b) so much of the amount allowed to be deducted from income in terms of the Income Tax Act (whether in that year or a previous year of assessment) in respect of the use of assets, or expenditure incurred, in respect of mineral resources transferred on or after 1 March 2010 to win, recover and develop those mineral resources to the condition speci ed in Schedule 2, as is included in the income of the extractor during that year of assessment— (i) as a recoupment in terms of any provision of that
Act; or
(ii) in terms of paragraph (j) of the de nition of
‘gross income’ in section 1 of that Act,
[Para. (b) substituted by s. 98 (1) (c) of Act 17 of 2009.] less any amount which in terms of that Act—
(i) is deductible from the income of the extractor during any year of assessment in respect of assets used or expenditure incurred to win, recover and develop those unre ned mineral resources to the condition speci ed in Schedule 2 for those mineral resources; or
(ii) would have been deductible from the income of the extractor during any year of assessment in respect of assets used or expenditure incurred to win, recover and develop those unre ned mineral resources had those mineral resources been developed to the condition speci ed in Schedule 2 for those mineral resources.
[Sub-s. (2) amended by s. 98 (1) (d) of Act 17 of 2009 and by s. 132 (1) (b) of Act 7 of 2010.]
(3) For purposes of subsections (1) and (2), ‘earnings before interest and taxes’ is determined without regard to—
(b)
respect of re ned mineral resources; and
so much of the amount allowed to be deducted from income in terms of the Income Tax Act (whether in that year or a previous year of assessment) in respect of the use of assets, or expenditure incurred, in respect of mineral resources transferred on or after 1 March 2010 to win, recover and develop those mineral resources to the condition speci ed in Schedule 1, as
(a)
(b) (c)
any deduction in respect of a nancial instrument as de ned in section 1 of the Income Tax Act (other than an instrument that is an option contract, forward contract or other instrument the value of which is derived directly or indirectly with reference to mineral resources);
any deduction allowed in terms of section 11 (a) of the Income Tax Act in respect of the royalty;
(i) in the case of mineral resources re ned to the condition speci ed in Schedule 1 for those mineral resources, any deduction for expenditure incurred in respect of transport, insurance and
244
Juta’s IndIrect tax 2016