Page 256 - Juta's Indirect Tax

s 13 MINERAL AND PETROLEUM RESOURCES ROYALTY ACT 28 OF 2008 s 18
13 Conclusion of scal stability agreements
(1) The Minister of Finance may conclude a binding agreement with an extractor—
(a) in respect of the extractor’s mineral resource right; or
(b) in anticipation of the extractor acquiring a mineral
resource right,
that guarantees that the terms and conditions contemplated in section 14 apply in respect of the right for as long as the extractor holds the right (and for all participating interests subsequently held by the extractor in respect of the right).
(2) A binding agreement relating to the anticipated acquisition of a mineral resource right contemplated in subsection (1) (b) has no force and effect unless the mineral resource right is granted within one year after the date on which the Minister of Finance concludes the binding agreement.
(3) If an extractor disposes of a prospecting right or an exploration right granted under the Mineral and Petroleum Resources Development Act to another person, and the right is subject to a binding agreement mentioned in subsection (1) on the date of the disposal, the extractor may assign all the rights held by the extractor under the agreement to the other person.
(4) If an extractor disposes of a mining right or a production right granted under the Mineral and Petroleum Resources Development Act to another person, and the right is subject to a binding agreement mentioned in subsection (1) on the date of the disposal, the extractor may assign all the rights held by the extractor under the agreement to the other person, if both the extractor and the other person form part of the same group of companies (as de ned in section 1 of the Income Tax Act) on the date of the disposal.
(5) An extractor that concludes a binding agreement mentioned in subsection (1) may unilaterally terminate the agreement at any time with effect from the day after the last day of the year of assessment during which the extractor terminated the agreement.
(6) For purposes of this section—
(a) a prospecting right, a renewal of the prospecting
right and an initial mining right converted from a prospecting right or renewal thereof held by an extractor; and
(b) an exploration right, a renewal of the exploration right and an initial production right converted from an exploration right or renewal thereof held by an extractor,
are, to the extent that those rights relate to the same geographical area, all deemed to be one and the same mineral resource right in the hands of the extractor.
(7) The powers conferred and the duties imposed upon the Minister of Finance by the provisions of this section may be exercised or performed by the Minister personally or delegated by the Minister to the Director-General of the National Treasury and the Director-General may in turn delegate the powers and duties so delegated to him or her to any of cer or person under his or her control, direction or supervision.
(8) For purposes of this section ‘mineral resource right’ means a prospecting right, exploration right, mining right or production right granted pursuant to the Mineral and Petroleum Resources Development Act, and includes any lease or sublease mentioned in section 11 of that Act in respect of such right.
[Date of commencement of s. 13: 1 November 2009.]
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14 Terms and conditions of scal stability agreements
(1) An amendment of section 4 has no force and effect in respect of an extractor that is party to an agreement contemplated in section 13 (1) if the amendment has the effect that the extractor becomes subject to a royalty which is greater than the royalty to which the extractor would otherwise have been subject.
(2) If the State fails to comply with the terms of an agreement contemplated in section 13 (1) and the failure has a material adverse economic impact on the determination of the royalty payable by the extractor that is party to that agreement, the extractor is entitled to compensation in respect of the increase in the royalty caused by the failure (and interest at the prescribed rate calculated on the compensation from the date of the failure) or to an alternative remedy that eliminates the full impact of the failure.
[Date of commencement of s. 14: 1 November 2009.]
15 Foreign currency
Any amount received by or accrued to, or expenditure or loss incurred by—
(a) an oil and gas company as de ned in paragraph 1
of the Tenth Schedule to the Income Tax Act in any currency other than the currency of the Republic must be translated to the currency of the Republic by applying the average exchange rate for the year in which that amount was so received or accrued or expenditure or loss was so incurred;
(b) an extractor in any currency other than the currency of the Republic must be translated to the currency of the Republic by applying the spot rate, as de ned in section 1 of the Income Tax Act, on the date on which that amount was so received or accrued or expenditure or loss was so incurred.
[S. 15 substituted by s. 152 (1) of Act 24 of 2011 – date of commencement deemed to have been 1 March 2010. This substituted section applies in respect of a mineral resource transferred on or after that date.]
16 Transitional credits
(1) There must be deducted from the royalty payable in respect of a mineral resource the amount of any lease, royalty or similar payment to the State in respect of that mineral resource in terms of any conditions imposed pursuant to the laws applicable in respect of an old order right or OP26 right mentioned in Schedule II of the Mineral and Petroleum Resources Development Act, as consideration for the removal or disposal of a mineral or petroleum.
(2) No deduction is allowed in terms of subsection (1) in respect of any lease mentioned in item 9 (7) of Schedule II to the Mineral and Petroleum Resources Development Act.
(3) The amount to be deducted in terms of subsection (1) must not exceed the royalty mentioned in that subsection.
17 Act binding on State and application of other laws
This Act binds the State, and no provision in any other law is construed as applying or referring to this royalty unless the royalty is speci cally mentioned in that provision.
18 Short title and commencement
(1) This Act is called the Mineral and Petroleum Resources Royalty Act, 2008.
(2) This Act comes into operation—
Juta’s IndIrect tax 2016