Page 254 - Juta's Indirect Tax

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(b)
MINERAL AND PETROLEUM RESOURCES ROYALTY ACT 28 OF 2008 s 9
less than the amount accrued, by subtracting the difference between those amounts when determining the gross sales.
[Sub-s. (5) added by s. 133 (1) of Act 7 of 2010.]
(2) An extractor is not exempt from the royalty as mentioned in subsection (1) if—
(a) the extractor at any time during that year holds the
right to participate (directly or indirectly) in more than 50 per cent of the share capital, share premium, current or accumulated pro ts or reserves of, or is entitled to exercise more than 50 per cent of the voting rights in, any other extractor;
(b) any other extractor at any time during that year holds the right to participate (directly or indirectly) in more than 50 per cent of the current or accumulated pro ts of the extractor;
(c) any other person at any time during that year holds the right to participate (directly or indirectly) in more than 50 per cent of the pro ts of the extractor and more than 50 per cent of the current or accumulated pro ts of any other extractor; or
(d) the extractor is a registered person mentioned in section 4 of the Administration Act.
8 Exemption for sampling
An extractor is exempt from the royalty imposed in respect of mineral resources won or recovered by the extractor for purposes of testing, identi cation, analysis and sampling mentioned in section 20 of the Mineral and Petroleum Resources Development Act pursuant to a prospecting right or an exploration right as de ned in section 1 of that Act if the gross sales in respect of those mineral resources does not exceed R100 000 during a year of assessment.
8A Rollover relief for transfers between extractors
[Heading substituted by s. 150 (1) of Act 24 of 2011 –
date of commencement deemed to be 1 March 2010. This substitution applies in respect of a mineral resource transferred on or after that date.]
(1) An extractor that transfers a mineral resource to another extractor is exempt from the royalty in respect of the transfer of that mineral resource if—
(a) the mineral resource is transferred between extractors
that are registered in terms of the Administration Act;
and
(b) both extractors agree in writing that this section
applies to that transfer.
(2) An extractor to whom a mineral resource is
transferred under subsection (1) must be treated as the person that wins or recovers the mineral resource.
(3) This section does not apply to a transfer of a mineral resource from an extractor that is registered in terms of section 2 (1) (c) of the Administration Act.
[S. 8A inserted by s. 135 (1) of Act 7 of 2010.]
9 Rollover relief for disposals involving going concerns
(1) For purposes of this Act a disposal of a mineral
resource by an extractor that forms part of the disposal of a going concern, or of a part of a going concern which is capable of separate operation, by that extractor to any other extractor is deemed not to be a disposal.
(1A) For purposes of this Act a disposal of a mineral resource by an extractor to any other extractor is deemed not to be a disposal, if—
(a) the mineral resource is disposed of to another
extractor in terms of—
(i)an asset-for-share transaction mentioned in
section 42 of the Income Tax Act;
(ii)an amalgamation transaction mentioned in
section 44 of the Income Tax Act;
Juta’s IndIrect tax 2016
6A Application of Schedule 2
(1) If any unre ned mineral resource—
(a) is transferred below the condition speci ed in
Schedule 2 for that mineral resource, the mineral resource must be treated as having been brought to the condition speci ed for that mineral resource; or
[Para. (a) substituted by s. 185 (1) (a) of Act 31 of 2013 – date of commencement: 1 March 2014; the substitution applies iro any mineral resources transferred on or after that date.]
(b) is transferred at a condition beyond the condition speci ed in Schedule 2 for that mineral resource, the mineral resource must be treated as having been transferred at the higher of the condition speci ed for that mineral resource or the condition in which that mineral resource was extracted.
[Para. (b) substituted by s. 185 (1) (a) of Act 31 of 2013 – date of commencement: 1 March 2014; the substitution applies iro any mineral resources transferred on or after that date.]
(1A) If any unre ned mineral resource with a range is transferred—
(a) at a condition below the minimum of the range of
conditions speci ed in Schedule 2 for that mineral resource, the mineral resource must be treated as having been brought to the minimum of the range of conditions speci ed for that mineral resource;
(b) at or within the range of conditions speci ed in Schedule 2, the mineral resource must be treated as having been transferred at that condition; or
(c) at a condition above the maximum range of conditions speci ed in Schedule 2, the mineral resource must be treated as having been transferred at the maximum of the range of conditions speci ed for that mineral resource.
[Sub-s. (1A) inserted by s. 185 (1) (b) of Act 31 of 2013 – date of commencement: 1 March 2014; the insertion applies iro any mineral resources transferred on or after that date.]
(2) If—
(a) a concentrate mainly consists of a mineral resource
listed in Schedule 2; and
(b) the price of the concentrate at disposal thereof is
determined solely with reference to the mineral resource listed in Schedule 2, the speci ed condition for the other minerals in the concentrate must not be taken into account for the purposes of the application of that Schedule.
[S. 6A inserted by s. 134 (1) of Act 7 of 2010.]
7 Small business exemption
(1) An extractor is exempt from the royalty in respect of a year of assessment if—
(a) gross sales of that extractor in respect of all mineral
resources transferred does not exceed R10 million
during that year;
(b) the royalty in respect of all mineral resources
transferred that would be imposed on the extractor
for that year does not exceed R100 000; and
(c) the extractor is a resident as de ned in section 1 of the
Income Tax Act throughout that year.
(d) . . .
[Para. (d) deleted by s. 186 (1) (c) of Act 31 of 2013 – date of commencement: 1 March 2014; the deletion applies iro a mineral resource transferred on or after that date.]
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