Mining taxation — the South African context Economic Tax Analysis, August 2013 South Africa's mining industry has for many years been dominated by gold and coal mining. …
CHAPTER 2: THE SOUTH AFRICAN MINING TAX REGIME AS OF 2016 18 2.1. Introduction 18 2.2. Selected provisions which make up the South African mining tax regime 19 2.2.1. Corporate Income Tax: Mining Companies 19 2.3. Brief comparative study: South Africa vs. neighbouring mining jurisdictions 21 2.3.1. Namibia 21 2.3.2. Zambia …
Aside from reviewing and highlighting South Africa's gold mining history, this chapter considers issues of vital importance that enabled South Africa to attain its economic preeminence in the gold mining sector. ... The new formula was based on Tax Rate(y) = a-b/x where x=profit/ revenue ratio and, a and b are respectively the level and ...
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 …
South Africa - Gold Mining, Economy, History: 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 …
Coal mining in South Africa began around the same time as gold mining and is one of the country's most valuable commodities, accounting for 24 percent of mineral mining revenue in 2022.
mining subsectors, due chiefly to the substantial and disproportionate impact gold mining has had on the South African economy compared to other mining industries (including ... The gold formula is also designed to tax gold mines at an increasing marginal rate, depending on profitability, ensuring that the more profitable gold mines ...
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 ...
410 Journal of the South African Institute of Mining and Metallurgy May, 1968. Some implications of the new assistance formula for South African gold mines — D. G. Krige. The only practical solution is, therefore, some simple scheme or formula which will automatically achieve the objective of covering the losses on unpayable ore
Specifically, the minimum royalty rate is 3% (ad-valorem), which increases to 4% when gold prices are between USD1,000/ounce and USD1,300/ounce, and further to 5% when prices go in excess of USD1,300/ounce. The average corporate income tax in Africa which applies to the mining sector is approximately 32%.
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 …
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 …
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% …
Gold Fields pays taxes on its taxable income generated by its mining and non-mining tax entities. Under South African law, ... Deep mine and constitute gold mining companies for South African taxation purposes. These companies are subject to the gold formula on their mining income. The applicable formula takes the form Y = 34 — 170/x Where:
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;
In Table 2, average figures by country are displayed. We notice that a large majority of mines are located in South Africa, Burkina Faso, Ghana, Mali and Zimbabwe, while the remaining ones are distributed across the remaining 6 countries. Profit tax rates range between 15.6% in Zimbabwe to 37.5% in Namibia.
The PGM Miners in South Africa went through decades of severe challenges. The adoption of new strategies turned the tide for them to emerge as a resilient industry with the capability to drive continued demand for metals. They were able to open additional streams of income from base metals that were recovered when mining PGMs …
In 1887, the rate for base metals was reduced to 1%, while all other minerals remained at 2.5%. The significant gold mine development on the Witwatersrand ushered in a special lease (or royalty) consideration regime for gold mining in South Africa, and the 1908 Gold Law paved the way for a sliding-scale formula payable on profits.
The Witwatersrand Basin remains the world's largest gold resource. In 2022, the gold sector employed 93,841 people who collectively earned R28.9 billion. Gold production of 84 tonnes. At the current gold price …
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 265 South …
An Untapped Goldmine: Opportunities for South African Mining. Historically, the mining sector has contributed significantly to South Africa's economic growth and employment, supported by a rich natural endowment of mineral resources, including Platinum Group Metals (PGMs), gold, iron ore, and manganese. Currently, the mining …
The following are advantages of gold mining in South Africa: It has stimulated the development of transport and communication system like railways lines, roads, airways and seaport that encourage export of goods. It has created employment opportunities not only to peoples of South Africa but also from neighboring countries like …
The mining sector's contribution to South Africa's gross domestic product stood at 6.2% last year from 7.3% in 2022 and 8.3% a decade earlier, according to Minerals Council South Africa, an ...
A Key Economic Role. The mining sector plays a key role in SSA, with 15 countries in the region defined as "resource-intensive." 1 A substantial proportion of the world's mining production comes from Africa, including more than 30 percent of global production of chromium, cobalt, manganese, platinum, gem diamonds and tantalum …
Pienaar explained that mining was not only the backbone of South Africa's economy in the past but still matters today. The sector employs over 477,000 South Africans and pays the government over R140 billion in tax and royalties annually. South Africa's total mining output has decreased by 13% since 1994.
In Table 2, average figures by country are displayed. We notice that a large majority of mines are located in South Africa, Burkina Faso, Ghana, Mali and …
7% on taxable income above ZAR 95,750 but not exceeding ZAR 365,000. ZAR 18,848 + 21% on taxable income above ZAR 365,000 but not exceeding ZAR 550,000. ZAR 57,698 + 27% on taxable income exceeding ZAR 550,000. Special CIT rates apply in certain industries, such as gold mining and long-term insurance ( see below ).
In the formula above, Y is the percentage rate of tax payable and X is the ratio of mining profit, after the deduction of redeemable capital expenditure, to mining revenue expressed as a percentage. 2 Non-mining income of South African mining operations consists primarily of interest income.
Rising costs, falling ore grades and a stagnant gold price are steadily eroding the economic viability of gold mining in South Africa. This paper explores the major economic dynamics behind the profit squeeze. ... Since 1920, the gold mining tax formula has taken the form: r= % of gold mining profits paid to government =a-b/x where x = …
9. MINING AND INCOME TAXATION - Gold Fields. the maximum South African statutory mining tax rate of 34.0% (2016: 34.0% and 2015: 34.0%) were: Taxation on profit before taxation at maximum South African statutory mining tax rate (51.8) (121.5) (3.0) Rate adjustment to reflect the actual realised company tax rates in South Africa and offshore …
The Mineral and Petroleum Resources Royalty Act 28 of 2008 (Royalty Act) sets out the revenue-based royalties payable on mineral resources that are extracted within South Africa and 'transferred ...
The tax mining summary tool compiles information provided by Member Firms across the PwC Network using their best efforts. The information is provided for general information purposes only and should not be used or relied upon as a substitute for consultation with professional advisors. Whilst no representation or warranty is given to the ...
South African mining tax in the 1990s* by M.C. VAN BLERCKt SYNOPSIS This paper reviews the current mining taxes in South Africa, discussing the recommendations of the Mantis ... RATES OF GOLD-MINING TAX Tax formula (y = a - ab/x) a b Tax years ending 31st March Confirmed 1989 1966 and pre-I966 mines Post-I966 mines
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 …
South Africa's gold mines, once the apex of global gold production, now grapple with deep-seated challenges – aging infrastructure and depths that test the limits of modern mining.