gold mining tax formula south africa

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

Mining duties, royalties and taxes in South Africa - Lexology

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

2021-8-1 · Apart from gold mining, there are many other minerals being produced, for some of which South Africa is the leading producer and holder of reserves. The Green Paper also has a chapter on small-scale mining which is intended to encourage the small and medium sized operator, to the benefit of employment and the overall economy.

Corporate tax in South Africa: a guide for expats | Expatica

2021-6-11 · Corporate tax rates in South Africa. The corporate tax rate in South Africa is a flat rate of 28% for all companies (27% from 1 April 2022). This is slightly below the average corporate tax rate for Africa overall, which is 28.45%, and above the global average of 24.18%.

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

1984-12-1 · 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 built-in progressive tax rate …

KPMG GLOBAL MINING INSTITUTE Guinea

2021-5-26 · Mining contribution to 2012 GDP Largest global Bauxite producer in 2012. Mining contribution to total exports. Set to become world''s largest iron ore mine and infrastructure venture of its kind Estimated Simandou South iron ore production at full capacity. 1.

MPRR FAQs – South African Revenue Service

2021-5-4 · A: See these easy steps on how to register as a new user on eFiling: Step 1. Log on to the SARS website a. On the top right side of the home page is a list of SARS eFiling options. Select ''Register Now''. b. The eFiling Register screen will display. Step 2.

Mining taxation in Africa: The gold mining industry in 14 ...

2021-7-22 · gold rent sharing between states and investors in 14 English-speaking and French-speaking African countries. 2. Gold mining taxation: an issue in Africa Gold occupies a dominant position among the eight most exploited metals in Africa. Over 34 African countries currently produce gold on an artisanal and/or industrial scale which represents almost a

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

However, the application of such fundamental principles in the tax formula of the South African gold mining industry negates the neutrality principle. A progressive element in the tax rate encourages mining of submarginal ores - leads to misallocation of resources.

Allegations of R257m in fraud, theft and tax evasion ...

2020-10-15 · TWO managers of a Chinese-owned South African gold mining company are fighting for their jobs and fear for their safety after blowing the whistle on R257m in alleged "irregular" and questionable spending.. Phillip Spencer, South Africa financial director for Heaven Sent Gold…

2297. Mining and prospecting

2018-2-2 · 2297. Mining and prospecting APRIL 2014 – ISSUE 175. This article deals with the taxation of mining and prospecting companies that are tax resident in South Africa and their non-tax resident shareholders. What is certain is that they are subject to taxes.

Mining Royalties

2016-7-10 · 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

Gold tax formula is a rock solid way to rejuvenate mining

 · (The 2007 gold mining formula was Y=45-225/X where Y is the percent tax payable and X is the ratio of mining profit, after the deduction of all mining capital expenditure, to revenue from mining ...

Mining Law 2021 | Laws and Regulations | South Africa | ICLG

2020-10-9 · South Africa: Mining Laws and Regulations 2021. ICLG - Mining Laws and Regulations - South Africa covers common issues in mining laws and regulations – including the acquisition of rights, ownership requirements and restrictions, processing, transfer and encumbrance, environmental aspects, native title and land rights – in 15 jurisdictions.

Transfer Pricing in the Mining Sector

2016-8-24 · the same group of companies. For example, a South Africa-based company might sell mining equipment and machinery to its Ghana-based subsidiary. The price agreed is the "transfer price." The process for setting it is referred to as "transfer pricing." The difficulty in monitoring and taxing such transactions is that they do not take place on

Mining Tax Recommendations

2021-8-1 · 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. Despite the fact that the gold mining industry is reaching its sunset years, it remains a major contributor to employment in South Africa.

Davis Tax Committee recommends ...

2021-7-20 · The gold mining formula be phased out for new projects and remain optional for existing mines. Devise a template contract for contract mining as a guide for taxpayers. A thorough update and refinement of mining royalty schedules A and B and …

A century of migrant labour in the gold mines of South …

2009-8-26 · By 1932 South Africa and its highly cost-sensitive gold mining industry were enjoying a windfall. In that year the country departed from the Gold Standard, new gold-bearing formations were found, and the gold price rose. These windfalls gave industry 66 MARCH 2004 The Journal of The South African Institute of Mining and Metallurgy

Contribution Minerals and Mining Sector to National ...

The mining sector has therefore been an important part of our economy, with gold accounting for over 90% of the sector. Ghana is the second largest gold producer in Africa and the 9th largest producer in the world. The sector directly contributed 38.3% of Ghana''s total corporate tax earnings, 27.6% of government revenue and 6% GDP in 2011.

THE ECONOMICS OF GOLD MINING TAXATION

2018-11-17 · 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 free revenue portion. This is against the

Corporate income taxes, mining royalties and other …

2015-6-3 · 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

IMF Country Report No. 15/244 SOUTH AFRICA

2015-9-8 · 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.

Davis Tax Committee recommends ...

2021-7-20 · The gold mining formula be phased out for new projects and remain optional for existing mines. Devise a template contract for contract mining as a guide for taxpayers. A thorough update and refinement of mining …

MINING: Mozambique

2021-6-28 · new tax regime for mining companies is expected to increase the overall tax on ... and South Africa. 2 The country spreads over 799,380 square kilometres, with a 2,470-kilometres-long ... gold aluminium, petroleum products, gas, chemicals (fertilizer, soap, paint), hydro-power, ...

Home | AngloGold Ashanti

AngloGold Ashanti, with its head office in South Africa, is an independent, global gold mining company with a diverse, high-quality portfolio of operations, projects and exploration activities across nine countries on four continents. While gold is our principal product, we also produce silver (Argentina) and sulphuric acid (Brazil) as byproducts.

Mining duties, royalties and taxes in South Africa

2019-7-4 · 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 per cent (often...

THE INCIDENCE OF THE TAX ON GOLD MINING IN SOUTH AFRICA ...

THE INCIDENCE OF THE TAX ON GOLD MINING IN SOUTH AFRICA THE INCIDENCE OF THE TAX ON GOLD MINING IN SOUTH AFRICA Black, Duncan 1937-06-01 00:00:00 Footnotes 1 W. J. Busschau, The Theory of Gold Supply (Oxford); and two articles of his, "Gold Mining Taxation, a Method of Analysis," Soma A frican J ournal of E conomics, 1935; and "The Future of Gold Supply," The …

Grade 8

Gold mining in South Africa typically involves methods such as panning, sluicing, dredging, hard rock mining, and by-product mining. For most effective gold mining in South Africa, the method used is hard rock mining, since reserves are typically fully encased in rock deep underground. The invention of industrial air cooling and air quality ...

Tax investment boost for the mining sector in South Africa

2018-10-29 · Tax investment boost for the mining sector. Within the South African context, junior mining companies have been seen as too risky an investment by private equity firms, family offices, financial institutions and wealthy individuals. As a way to encourage investments in the mining sector, which is one of the largest employers in South Africa ...

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. A progressive element in the tax rate encourages mining of submarginal ores - leads to ...

Mining Tax

Mining Tax. 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 …

South Africa

2021-6-28 · CIT for mining companies Special rates of normal tax, based on a standard formula, are prescribed for companies mining for gold. Companies mining for other minerals are subject to the same 28% rate of normal tax that applies to ordinary companies. CIT for long-term insurance companies

Gold refining by solvent extraction—the Minataur™ Process

2009-8-26 · in gold-refining technology, but may be instrumental in initiating important changes in the legislation regulating the marketing of gold in South Africa. Gold of either 99.99% or 99.999% purity can be produced from intermediate process products having a wide range of gold contents. The process comprises oxidative leaching of the solid

Allegations of R257m in fraud, theft and tax evasion ...

2020-10-15 · Allegations of R257m in fraud, theft and tax evasion levelled at Heaven Sent managers. TWO managers of a Chinese-owned South African gold mining company are fighting for their jobs and fear for their safety after blowing the whistle on R257m in alleged "irregular" and questionable spending. Phillip Spencer, South Africa …

THE PRECIOUS METALS TRADE

Gold mining grades are generally very low. In South Africa, gold grades range between 4 and 10 grams per tonne, i.e., gold occurs in a concentration of 4 to 10 parts per million. At a grade of 4 grams per tonne, it would take about 8t of ore to produce one troy ounce (ozt) of gold. 2.4 SOUTH AFRICA – PAVED WITH GOLD In the modern era, South ...

CYANIDE AND CYANIDE COMPLEXES IN THE GOLD

2016-6-14 · 1.1 The history of mining on the Witwatersrand Basin The metropolis of Johannesburg, South Africa''s largest city and financial centre, owes its origin to the gold-bearing rocks of the Witwatersrand Basin (Figure 1.1). The basin-roughly oval in shape, approximately 350 km north east to south …

History | Sibanye-Stillwater

2021-7-29 · Established as Sibanye Gold Limited in February 2013, the company was created through the unbundling of Gold Fields Limited''s owned subsidiary GFI Mining South Africa Proprietary Limited which owned the Kloof, Driefontein and Beatrix gold …