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.