3.       Determination of royalty

 

(1)     The royalty mentioned in section 2 in respect of the transfer of a refined mineral resource, other than oil and gas, is determined by multiplying the gross sales of the extractor in respect of that mineral resource during the year of assessment by the percentage determined in accordance with the formula in section 4(1).

[Subsection (1) substituted by section 54(1) of Act 17 of 2023 with effect from 1 January 2024 and applicable in respect of years of assessment commencing on or after that date]

 

(1A)  The royalty mentioned in section 2 in respect of the transfer of a refined mineral resource, that is oil and gas, is determined by multiplying the gross sales of the extractor in respect of that mineral resource during the year of assessment by the percentage determined in accordance with the formula in section 4(1A).

[Subsection (1A) inserted by section 54(1) of Act 17 of 2023 with effect from 1 January 2024 and applicable in respect of years of assessment commencing on or after that date]

 

(2)     The royalty mentioned in section 2 in respect of the transfer of an unrefined mineral resource is determined by multiplying the gross sales of the extractor in respect of that mineral resource during the year of assessment-

 

(a)     by the percentage determined in accordance with the formula in section 4(2); or

 

(b)     by the percentage determined in accordance with the formula as the Minister may announce in the national annual budget contemplated in section 27(1) of the Public Finance Management Act, 1999 (Act 1 of 1999) effective on a date mentioned in that announcement.

[Subsection (2) substituted by section 92(a) of Act 15 of 2016]

 

(3)     If the Minister makes an announcement contemplated in subsection (2)(b), that percentage determined in accordance with the formula comes into effect on the date determined by the Minister in that announcement and continues to apply for a period of 12 months from that date subject to Parliament passing legislation giving effect to that announcement within that period of 12 months.

[Subsection (3) added by section 92(b) of Act 15 of 2016]