“extractor” means a person mentioned in section 2;
Category: Mineral and Petroleum Resources Royalty Act No. 28 of 2008
“Earnings before interest and taxes” definition of section 1 of MPRA
“earnings before interest and taxes” means earnings before interest and taxes mentioned in section 5;
“Administration Act” definition of section 1 of MPRA
1. Definitions
(1) In this Act, unless the context indicates otherwise—
“Administration Act” means the Mineral and Petroleum Resources Royalty (Administration) Act, 2008;
MPRA Index
ARRANGEMENT OF SECTIONS
Section 2 – Imposition of royalty
Section 3 – Determination of royalty
Section 5 – Earnings before interest and taxes
Section 6A – Application of Schedule 2
Section 7 – Small business exemption
Section 8 – Exemption for sampling
Section 8A – Rollover relief for transfers between extractors
Section 9 – Rollover relief for disposals involving going concerns
Section 10 – Transfer involving body of unincorporated persons
Section 11 – Arm’s length transactions
Section 12 – General anti-avoidance rule
Section 13 – Conclusion of fiscal stability agreements
Section 14 – Terms and conditions of fiscal stability agreements
Section 16 – Transitional credits
Section 17 – Act binding on State and application of other laws
Section 18 – Short title and commencement
BE IT ENACTED by the Parliament of the Republic of South Africa, as follows:—
MPRA Citation
Reproduced under Goverment Printer’s Authorisation (Authorisation No. 11837) dated 30 November 2020.
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MINERAL AND PETROLEUM RESOURCES ROYALTY ACT 28 OF 2008
[ASSENTED TO 17 NOVEMBER, 2008]
(Date of commencement: 1 November, 2009)
(English text signed by the President)
as amended by
Taxation Laws Amendment Act 17 of 2009
Taxation Laws Amendment Act 7 of 2010
Taxation Laws Amendment Act 24 of 2011
Taxation Laws Amendment Act 31 of 2013
Tax Administration Laws Amendment Act 39 of 2013
Taxation Laws Amendment Act 15 of 2016
Taxation Laws Amendment Act 23 of 2018
Latest 2024 Live Updates: COMPLETED!
Taxation Laws Amendment Act 17 of 2023
ACT
To impose a royalty on the transfer of mineral resources and to provide for matters connected therewith.
Section 9 (MPRA) – Rollover relief for disposals involving going concerns
9 Rollover relief for disposals involving going concerns
(1) For purposes of this Act a disposal of a mineral resource by an extractor that forms part of the disposal of a going concern, or of a part of a going concern which is capable of separate operation, by that extractor to any other extractor is deemed not to be a disposal.
(1A) For purposes of this Act a disposal of a mineral resource by an extractor to any other extractor is deemed not to be a disposal, if—
(a) the mineral resource is disposed of to another extractor in terms of—
(i) an asset-for-share transaction mentioned in section 42 of the Income Tax Act;
(ii) an amalgamation transaction mentioned in section 44 of the Income Tax Act;
(iii) an intra-group transaction mentioned in section 45 of the Income Tax Act;
(iv) a liquidation distribution mentioned in section 47 of the Income Tax Act; or
(v) any transaction which would have constituted a transaction or distribution mentioned in subparagraphs (i) to (iv) regardless of whether that extractor acquired that mineral resource as a capital asset or as trading stock; and
(b) the extractor to whom the mineral resource is disposed of, immediately after a transaction contemplated in paragraph (a)(i), (ii), (iii), (iv) or (v), qualifies for registration in terms of section 2(1)(a) of the Administration Act.
[Subsection (1A) inserted by section 100(1) of Act 17 of 2009 effective on 1 March, 2010 and applicable in respect of a mineral resource transferred on or after that date]
(2) For purposes of this Act an extractor that acquires a mineral resource in terms of a disposal mentioned in subsection (1) is deemed to be the extractor that won or recovered the mineral resource.
Section 8A (MPRA) – Rollover relief for transfers between extractors
8A Rollover relief for transfers between extractors
(1) An extractor that transfers a mineral resource to another extractor is exempt from the royalty in respect of the transfer of that mineral resource if—
(a) the mineral resource is transferred between extractors that are registered in terms of the Administration Act; and;
(b) both extractors agree in writing that this section applies to that transfer.
(2) An extractor to whom a mineral resource is transferred under subsection (1) must be treated as the person that wins or recovers the mineral resource.
(3) This section does not apply to a transfer of a mineral resource from an extractor that is registered in terms of section 2(1)(c) of the Administration Act.
[Section 8A inserted by section 135(1) of Act 7 of 2010 and amended by section 150(1) of Act 24 of 2011 deemed effective on 1 March, 2010 and applies in respect of a mineral resource transferred on or after that date]
Section 8 (MPRA) – Exemption for sampling
8 Exemption for sampling
An extractor is exempt from the royalty imposed in respect of mineral resources won or recovered by the extractor for purposes of testing, identification, analysis and sampling mentioned in section 20 of the Mineral and Petroleum Resources Development Act pursuant to a prospecting right or an exploration right as defined in section 1 of that Act if the gross sales in respect of those mineral resources do not exceed R100 000 during a year of assessment.
[Section 8 substituted by section 97 of Act 23 of 2018]
Section 7 (MPRA) – Small business exemption
7 Small business exemption
(1) An extractor is exempt from the royalty in respect of a year of assessment if—
(a) gross sales of that extractor in respect of all mineral resources transferred does not exceed R10 million during that year;
(b) the royalty in respect of all mineral resources transferred that would be imposed on the extractor for that year does not exceed R100 000; and
[Paragraph (b) amended by section 186(1)(a) of Act 31 of 2013 effective on 1 March, 2014 and applicable in respect of a mineral resource transferred on or after that date]
(c) the extractor is a resident as defined in section 1 of the Income Tax Act throughout that year.
[Paragraph (c) amended by section 186(1)(b) of Act 31 of 2013 effective on 1 March, 2014 and applicable in respect of a mineral resource transferred on or after that date]
(d) . . . . . .
[Paragraph (d) deleted by section 186(1)(c) of Act 31 of 2013 effective on 1 March, 2014 and applicable in respect of a mineral resource transferred on or after that date]
(2) An extractor is not exempt from the royalty as mentioned in subsection (1) if—
(a) the extractor at any time during that year holds the right to participate (directly or indirectly) in more than 50 per cent of the share capital, share premium, current or accumulated profits or reserves of, or is entitled to exercise more than 50 per cent of the voting rights in, any other extractor;
(b) any other extractor at any time during that year holds the right to participate (directly or indirectly) in more than 50 per cent of the current or accumulated profits of the extractor;
(c) any other person at any time during that year holds the right to participate (directly or indirectly) in more than 50 per cent of the profits of the extractor and more than 50 per cent of the current or accumulated profits of any other extractor; or
(d) the extractor is a registered person mentioned in section 4 of the Administration Act.
Section 6A (MPRA) – Application of Schedule 2
6A Application of Schedule 2
(1) If any unrefined mineral resource—
(a) is transferred below the condition specified in Schedule 2 for that mineral resource, the mineral resource must be treated as having been brought to the condition specified for that mineral resource; or
[Paragraph (a) substituted by section 185(1)(a) of Act 31 of 2013 effective on 1 March, 2014 and applicable in respect of any mineral resources transferred on or after that date]
(b) is transferred in a condition beyond the condition specified in Schedule 2 for that mineral resource, the mineral resource must be treated as having been transferred in the higher of the condition specified for that mineral resource or the condition in which that mineral resource was extracted.
[Paragraph (b) substituted by section 185(1)(a) of Act 31 of 2013 and by section 96(a) of Act 23 of 2018]
(1A) If any unrefined mineral resource with a range is transferred—
(a) in a condition below the minimum of the range of conditions specified in Schedule 2 for that mineral resource, the mineral resource must be treated as having been brought to the minimum of the range of conditions specified for that mineral resource;
[Paragraph (a) substituted by section 96(b) of Act 23 of 2018]
(b) at or within the range of conditions specified in Schedule 2, the mineral resource must be treated as having been transferred at that condition; or
(c) in a condition above the maximum range of conditions specified in Schedule 2, the mineral resource must be treated as having been transferred at the maximum of the range of conditions specified for that mineral resource.
[Subsection (1A) inserted by section 185(1)(b) of Act 31 of 2013 effective on 1 March, 2014 and applicable in respect of any mineral resources transferred on or after that date. Paragraph (c) substituted by section 96(c) of Act 23 of 2018]
(2) If—
(a) a concentrate mainly consists of a mineral resource listed in Schedule 2; and
(b) the price of the concentrate at disposal thereof is determined solely with reference to the mineral resource listed in Schedule 2, the specified condition for the other minerals in the concentrate must not be taken into account for the purposes of the application of that Schedule.
[Section 6A inserted by section 134(1) of Act 7 of 2010 deemed effective on 1 March, 2010 and applicable in respect of a mineral resource transferred on or after that date]