“Breaking ground” to calculate mineral royalties on unrefined minerals
The 2014 changes to the South African Mineral and Petroleum Resources Royalty Act, 2008 (the “Royalty Act”) have left mining companies and extractors (“taxpayers”) in uncertain territory. The amendment saw the “minimum” requirement being deleted from section 6A(1), as well as from schedule 2 to the Royalty Act, in an attempt to provide clarity on how to interpret schedule 2 when determining gross sales for, inter alia, unrefined minerals extracted beyond the condition specified for that mineral when it is transferred. The Explanatory Memorandum on the Taxation Laws Amendment Bill, 2013 explains that the uncertainty was caused by schedule 2 providing the “minimum” requirement for some minerals, while not for others.
The amended wording is clear and expressly applies to all unrefined mineral resources that have a fixed specified condition and must be applied to determine gross sales for transfers of unrefined mineral resources after 1 March 2014. The provision now reads:
- UAE VAT Executive Regulation Update: Free Zone Guidance
- Stop! Wait! Move! - No Longer Stamp Duty for Residential Homes
- Tax changes for 2018 disclosed in the new budget bill
- VAT registration in the UAE has commenced
WSG Member: Please login to add your comment.