gold mining tax formula south africa

gold mining tax formula south africa

Mining Tax Recommendations Deloitte South Africa

Gold mining companies are taxed in terms of a formula which by and large, takes into account the profitability of the company and provides relief in cases where margins are below 5% (often referred to as the tax tunnel). The gold mining formula was introduced to encourage gold mining investment and the mining of marginal ores.

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 By Stephen Meintjes Mar 26, 2014 Throughout the urgent debate on the mining industry in

South African gold mining taxation : An example of a

Dec 01, 1984 The advantages of the South African gold mining tax formula as a mining tax system are evident. However, they must be weighed against possible disadvantages, such as the possible misallocation of resources, and the whole must be evaluated against the background of national priorities. RESOURCES POLICY December 1984

Mining duties, royalties and taxes in South Africa Lexology

Jul 04, 2019 The gold mining formula was introduced to encourage gold mining investment and the mining of marginal ore deposits. Mining companies mining for minerals other than gold

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 industry89 6.4.1.1 Taxpayer ring-fencing

Gold Mining Tax Formula South Africa

Gold Has Rewarded State Shareholders Mining Weekly. South Africas gold tax formula has rewarded the State and mine shareholders in equal measure data covering a period of 60 years shows South African goldmining figures from 1951 to 2011 show. Read More. South Africa Tax Team Recommends Review Of Gold Mining Tax

SOUTH AFRICA MINING AND PETROLEUM ROYALTIES THE

(the “Royalty Act”) regulates the imposition and calculation of mining royalties. Mining royalties are deductible for income tax purposes. Basic Structure of Royalty Regime In South Africa the liability to pay mining royalties arises when mineral resources which have

Mining Tax PwC South Africa

Mining forms one of the leading industries in South Africa, playing a vital role in the economy. Due to the complexity of the South African tax laws and the impact thereof on the industry, its is necessary to have a thorough understanding of not only the tax legislation, but also the specific needs of the South African mining industry.

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.

Gold Mining Index JSE-GOLD (J150) JSE Secto JSE

Arguably one of South Africa’s biggest industries, gold mining offers plenty by way of shares and profits. South Africa is responsible for providing up to 15% of the world’s gold, a huge industry when compared to other countries mining gold around the world.Gold was first discovered in South Africa in the 1800’s and since then it has become one of the country’s biggest exports, making

South African gold mining taxation : An example of a

Dec 01, 1984 The advantages of the South African gold mining tax formula as a mining tax system are evident. However, they must be weighed against possible disadvantages, such as the possible misallocation of resources, and the whole must be evaluated against the background of national priorities. RESOURCES POLICY December 1984

Guide for Tax Rates/Duties/Levies South African Revenue

1.2.1 Companies mining for gold These companies are taxed according to one of the following “gold mining tax formulae”: (a) Rate of normal tax on taxable income derived from mining for gold Year of assessment ending during the period Mining company not exempt from STC

Davis Tax Committee recommends changes to mining capex

The gold mining formula be phased out for new projects and remain optional for existing mines. 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. Alex has...

Gold has rewarded State, shareholders Mining Weekly

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 figures from 1951 to 2011 show

Taxation of mining industries Ferdi

The Ferdi provides the first legal and tax database that lists the tax regime applicable to industrial gold mines in 22 African producing countries since the 1980s and a simulation tool for sharing the mineral resource rent between State and investors.. The tools provided make it possible to: 1) understand the characteristics of the mining taxation, 2) know the evolution of the mining taxation

2297. Mining and prospecting SAICA

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.

Gold Mining Index JSE-GOLD (J150) JSE Secto JSE

Arguably one of South Africa’s biggest industries, gold mining offers plenty by way of shares and profits. South Africa is responsible for providing up to 15% of the world’s gold, a huge industry when compared to other countries mining gold around the world.Gold was first discovered in South Africa in the 1800’s and since then it has become one of the country’s biggest exports, making

MININGTAX:INCOMETAXCAPITALALLOWANCES GRANTED

2 depthsexceeding7500feet.Therewerenospeci-ficationsregardingthedateoftheleaseorthe 3.THECURRENTPOSITION(May1988) periodwhichmightelapsebetweenshaftsinking

Mining industry of South Africa Wikipedia

Anglo Gold Ashanti, Sibayane Gold Ltd, Harmony Gold Mining Co., First Uranium, and Peninsula Energy own or control most of the uranium-from-gold mining processing plants in South Africa. Though uranium production in South Africa showed a decrease from 711t in 2000 to 579t in 2010, in 2011 930t were produced with a forecast of 2,000t by 2020. [31]

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 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.

South Africa Gold mining Britannica

South Africa South Africa Gold mining: Prospectors established in 1886 the existence of a belt of gold-bearing reefs 40 miles (60 km) wide centred on present-day Johannesburg. The rapid growth of the gold-mining industry intensified processes started by the diamond boom: immigration, urbanization, capital investment, and labour migrancy. By 1899 the gold industry attracted investment worth

Mining Law 2021 Laws and Regulations South Africa ICLG

Like all South African companies, mining companies are subject to the provisions of the Income Tax Act, 1962. There are, however, special rules applicable to the taxation of prospecting and mining companies. In this regard, it is imperative that a person who wishes to rely on these rules is the holder of a prospecting or mining right as

Guide for Tax Rates/Duties/Levies South African Revenue

1.2.1 Companies mining for gold These companies are taxed according to one of the following “gold mining tax formulae”: (a) Rate of normal tax on taxable income derived from mining for gold Year of assessment ending during the period Mining company not exempt from STC

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.

Legal and Tax Database on Gold Mining in Africa The

Nov 17, 2016 The database includes the details of the tax regime applicable to industrial gold mines in 21 African countries from the 1980s. The database features three major new innovations: An inventory of taxes and duties (rate, base and exemptions) payable during the prospecting phase and mining phase of a gold mining project;

Gold has rewarded State, shareholders Mining Weekly

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 figures from 1951 to 2011 show

Mining Law 2021 Laws and Regulations South Africa ICLG

Like all South African companies, mining companies are subject to the provisions of the Income Tax Act, 1962. There are, however, special rules applicable to the taxation of prospecting and mining companies. In this regard, it is imperative that a person who wishes to rely on these rules is the holder of a prospecting or mining right as

Note 9 Gold Fields

The result is that there is only one gold mining formula with effect from 1 January 2012. 2: Non-mining income of South African mining operations consists primarily of interest income. 3: During the budget speech presented by the Minister of Finance of Ghana on 16 November 2011, certain changes to the current tax regime relating to mining

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: Mining Companies Seeking Certainty On Tax

South Africa: Mining Companies Seeking Certainty On Tax Issues In The Forthcoming 2013 Budget Speech This includes abandonment of the current gold mine formula tax, and its replacement with corporate income tax and resource rent tax, a 30 percent withholding tax on dividends4 to be paid by mining companies to certain tax havens and

Gold Mining Index JSE-GOLD (J150) JSE Secto JSE

Arguably one of South Africa’s biggest industries, gold mining offers plenty by way of shares and profits. South Africa is responsible for providing up to 15% of the world’s gold, a huge industry when compared to other countries mining gold around the world.Gold was first discovered in South Africa in the 1800’s and since then it has become one of the country’s biggest exports, making

MININGTAX:INCOMETAXCAPITALALLOWANCES GRANTED

2 depthsexceeding7500feet.Therewerenospeci-ficationsregardingthedateoftheleaseorthe 3.THECURRENTPOSITION(May1988) periodwhichmightelapsebetweenshaftsinking

Financial reporting in the mining industry International

pwc\mining Financial reporting in the mining industry International Financial Reporting Standards 6th edition

Gold mining is far from dead in SA Moneyweb

May 20, 2019 Data compiled by the Minerals Council South Africa shows that while gold production has declined steadily since 2008, the country still produced 132 tons of gold

Taxes on Physical Gold and Silver Investments

Feb 16, 2020 Physical holdings in gold or silver are subject to a capital gains tax equal to your marginal tax rate, up to a maximum of 28%. That means individuals in

Improving South Africa’s mining revenues and transparency

processes.8 As regards the financial aspects of mining, however South Africa’s key industry ­ there are major key failings, particularly concerning the transparency of revenue received and managed by government. First, South African law does not require mining (or other) companies to provide public details on their profits/losses and