gold mining tax formula south africa

Mining Tax Recommendations - Deloitte South Africa

The gold mining formula was introduced to encourage gold mining investment and the mining of marginal ores. Despite the fact that the gold mining industry is reaching its sunset years, it remains a major contributor to employment in South Africa. In light of

Gold tax formula is a rock solid way to rejuvenate mining

Mar 27, 2014 · Gold tax formula is a rock solid way to rejuvenate mining. Throughout the urgent debate on the mining industry in South Africa and elsewhere

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

Dec 01, 1984 · 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 ECONOMICS OF GOLD MINING TAXATION

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 ... 6.4.1 Categories of ring-fencing in the South African gold mining industry ...89 6.4.1.1 Taxpayer ring-fencing ...

Mining and tax in South Africa: Costs and benefits

However, South African mining companies enjoy generous tax treatment: they are able to deduct 100 per cent of much of their capital expenditures against tax while gold mining companies pay a corporation tax rate according to a formula that keeps remittances to government low.

Mining duties, royalties and taxes in South Africa - Lexology

Jul 04, 2019 · Gold mining companies are taxed in terms of a formula that, by and large, takes into account the profitability of the company and provides relief in cases where margins are below 5

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.

The economics of gold mining taxation

Aug 25, 2009 · Currently the gold mining industry is taxed differently to other industries. It is taxed 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

At a glance: mining duties, royalties and taxes in South ...

May 27, 2021 · Mining companies mining for minerals other than gold are taxed at the standard corporate tax rates. Gold mining companies, however, are taxed in terms of a formula that, by and large, takes into ...

EM Royalty Bill 2008 - 20 Aug 2008 - National Treasury

The MPRDA brings South Africa’s mining legislation in line with prevailing ... (the tax base) multiplied with the rate (e.g. 5.0%). In this instance, it ... 3. Royalty rates (formula based variable rates) From the above example, it is advisable that an ad valorem royalty regime should

Gold has rewarded State, shareholders ... - Mining Weekly

Sep 26, 2012 · South Africa’s gold tax formula has rewarded the State and mine shareholders in equal measure, data covering a period of 60 years shows. South African gold-mining

Mining Royalties - ISBN: 0821365029

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

IMF Country Report No. 15/244 SOUTH AFRICA

South Africa. Returns to mining activities in South Africa appear to have declined. Depletion of known reserves has become severe in long-established sections of the mining industry. Depletion particularly affects the traditional gold mining sector. Coal has become the leading mine product by value with iron ore possibly the most profitable.

Gold refining by solvent extraction—the Minataur™ Process

Gold refining by solvent extraction—the MinataurTM Process The Journal of The South African Institute of Mining and Metallurgy JULY/AUGUST 1997 171 Figure 1—The MinataurTM Process Table V Typical analysis of high-purity gold Element (ppm) ASTM† 99.99% Peñoles* Harmony* Au (%) 99.99 >99.999 >99.99 Ag 90 0.2 2 Cu 50 0.2‡ 0.8 Pd 50 0.1 ...

Market cap of SA mining has hit R1 trillion

Oct 07, 2020 · Share. JOHANNESBURG - The market cap of South African mining companies surged to more than R1 trillion in 2020, signalling that the industry had weathered the Covid-19

Dentons - Global tax guide to doing business in South Africa

Gold mining companies may elect to have their mining income taxed under a special formula, while the non-mining income of such companies is taxed at a rate of 28% (expected to be reduced to 27% with effect for tax years commencing on or after April 1, 2022).

Corporate income taxes, mining royalties and other mining ...

South Africa 41 Tanzania 43 Ukraine 45 United Kingdom 46 United States 47 ... considering increases to the mining tax rate and going beyond rates previously ... copper, gold, silver and platinum) from 3% to 4%. Although most countries have a mining royalty, there are exceptions. Mexico, for

Davis Tax Committee recommends ... - Deloitte South Africa

Director: Mining Tax Specialist. [email protected] +27 (0)82 444 0502. Alex is a director in the Global Business Tax Team of our South African practice. He has over 10 years’ experience as a tax specialist, including working at the South African Revenue Service.

South Africa - Corporate - Taxes on corporate income

Jun 28, 2021 · A South African (SA)-resident company is subject to corporate income tax (CIT) on its worldwide income, irrespective of the source of the income. Non-residents are taxable on SA-source income. In South Africa, the CIT rate applicable for corporate income of both resident and non-resident companies is a flat 28%.

Gold Mining in Africa: Maximizing Economic Returns for ...

world (in order) are China, US, Australia, South Africa and Russia. In addition to gold that comes from mines, an additional 1,500MT of annual global output on average comes from recycling (World Gold Council 2011). Figure 1: The distribution of gold mine production in Africa

Minerals and Mining Policy of South Africa: Green Paper ...

The Katz Commission is investigating mining tax in South Africa. The Commission's recommendations will need to be considered in conjunction with the policy options set out here. It is understood that the Commission will be considering a number of tax issues, for example: redemption of capital expenditure in mining; capital allowances for gold ...

The economics of gold mining taxation

Aug 25, 2009 · The South African government is in the process of implementing a revenue-based royalty system. The majority of firms in the gold mining industry feel that for the benefit of economic growth the government must consider implementing a profit-based royalty system. This study analyses the gold mining tax formula in comparison to the flat rate tax.

REPUBLIC OF SOUTH AFRICA EXPLANATORY

Table VII: Current rates for gold mining companies (no change proposed): Taxable Income Rate of Tax On gold mining taxable income See formula in paragraph 4(b) of Appendix I On non gold mining taxable income 28 per cent of the taxable income On non gold mining taxable income if exempt from STC 35 per cent of the taxable income

REPUBLIC OF SOUTH AFRICA EXPLANATORY

Table VIII: Current rates for gold mining companies (no change proposed): Taxable Income Rate of Tax On gold mining taxable income See formula in paragraph 4(b) of Appendix I On non gold mining taxable income 28 per cent of the taxable income On non gold mining taxable income if exempt from STC 35 per cent of the taxable income

Terms of Reference Task Team 20 July 2006

Progressive formula tax: Synthetic fuel production could be subject to a formula-based progressive profit tax, along similar lines to the South African gold mining tax formula. Such a formula has some advantages over a price or cost-based arrangement in that it avoids sharp tax thresholds and is linked directly to profitability.

The Taxation of South African Mining and Prospecting ...

Nov 28, 2013 · Non-tax resident shareholders selling their shares (whether directly or indirectly through intermediary companies) in South African mining companies or prospecting companies may be subject to South African CGT, and if so the purchaser is obliged to withhold 7.5% of the purchase price as an advance payment of such CGT and pay it over to SARS.

South Africa: Supreme Court of Appeal - SAFLII Home | SAFLII

The author of Mining Tax in South Africa, Marius van Blerck, explains the rationale behind the introduction of s 36(7F) as follows: ‘ Until 1984, where a company owned more than one mine, unredeemed capital expenditure on one of the mines could be set off against mining income of

Mining Taxation in Africa: What Recent Evolution in 2018 ...

mine’s profitability also exist. In South Africa, a formula is used to calculate a mining royalty rate of between 0.5 and 5 per cent for refined ores and between 0.5 and 7 per cent for non-refined ores. In Niger, the law provides for three rates of 5.5, 9 and 12 per cent depending on operating income. In practice, however, it seems that only

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 (2) (a) states that gross sales in respect of an unrefined mineral ...

Investing in South Africa | Practical Law

May 01, 2020 · South Africa applies a residence-based income tax system and all South African based business are liable to pay corporate tax on all income even if the income is obtained from a foreign source (that is, its worldwide income). ... Gold mining companies are taxed on the basis of a standard formula, whereas life insurance funds are taxed from 0% ...

Market cap of SA mining has hit R1 trillion

Oct 07, 2020 · Share. JOHANNESBURG - The market cap of South African mining companies surged to more than R1 trillion in 2020, signalling that the industry had weathered the Covid-19

Minerals and Mining Policy of South Africa: Green Paper ...

The Katz Commission is investigating mining tax in South Africa. The Commission's recommendations will need to be considered in conjunction with the policy options set out here. It is understood that the Commission will be considering a number of tax issues, for example: redemption of capital expenditure in mining; capital allowances for gold ...

Cut-off grade determination for the maximum value of a ...

Output in some mining operations may be limited by capacity in one of the three stages, mining, processing or marketing and could affect the economic cut-off grade. For the bulk of South African Wits-type deposits no such constraints exist. The average large South African gold mine hoists in the order of 2.25 Mt of rock annually comprising

SA gold mining firms applying for tax relief during ...

Apr 03, 2020 · SA gold mining firms applying for tax relief during lockdown likely to increase. By. Adéle de Jager. -. April 3, 2020. DURING the 21-day lockdown period, mining operations in South Africa will scale down significantly. The effect on deep-level mines will probably be most significant as coal mines supplying Eskom will continue to operate ...

Corporate income taxes, mining royalties and other mining ...

South Africa 41 Tanzania 43 Ukraine 45 United Kingdom 46 United States 47 ... considering increases to the mining tax rate and going beyond rates previously ... copper, gold, silver and platinum) from 3% to 4%. Although most countries have a mining royalty, there are exceptions. Mexico, for