Category: Mineral and Petroleum Resources Royalty (Administration) Act No. 29 of 2008

Section 5A (MPRAA) – Adjustments of estimates

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5A     Adjustments of estimates

 

(1)     The Commissioner may require a registered person to justify any estimate of the royalty payable as mentioned in section 5(1) or (2) or to furnish particulars in respect of that estimate and, if the Commissioner is dissatisfied with the amount of that estimate, the Commissioner may increase the amount of the estimate to an amount that the Commissioner considers reasonable, which increase is not subject to objection and appeal.

 

(2)     If in respect of a year of assessment a registered person does not submit an estimate by the end of the period specified in section 5(1) or (2), the Commissioner may estimate the amount of the royalty payable in respect of that year of assessment.

 

(3)     Any additional amount of royalty payable as a result of the increase or estimate referred to in subsection (1) or (2) must be paid within the period specified in a notice of assessment referred to in section 96 of the Tax Administration Act and issued in respect of that additional assessment.

 

(4)     Subject to subsection (2), if a registered person fails to submit an estimate of the royalty payable in respect of a year of assessment before the end of a period of four months after the last day of that year of assessment, that registered person is regarded as having submitted an estimate of an amount of nil royalty payable.

[Section 5A inserted by section 36(1) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

Section 5 (MPRAA) – Estimates, returns and payments

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Part III
Estimates, returns, payments, adjusted estimates, refunds and records

[Part III, heading substituted by section 34(1) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]



5      Estimates, returns and payments

(1)     In respect of a year of assessment a registered person must—

(a)     estimate the royalty payable;

(b)     submit a return of that estimate; and

(c)     make a first payment equal to one-half of the amount of the royalty so estimated,

not later than six months after the first day of that year of assessment.

(2)     In respect of a year of assessment a registered person must—

(a)     estimate the royalty payable;

(b)     submit a return of that estimate; and

(c)     make a second payment equal to the amount of the royalty so estimated less the amount paid as mentioned in subsection (1),

by the last day of that year of assessment.

[Section  5 amended by section 36(1) of Act 8 of 2010, by section 271 read with paragraph 185(a) and (b) of Sch. 1 of Act 28 of 2011 and substituted by section 35(1) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

Section 4 (MPRAA) – Election for unincorporated body of persons

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4      Election for unincorporated body of persons

(1)     Notwithstanding subsection (2), if an unincorporated body of persons—

(a)     consists of two or more members;

(b)     of which one or more members hold a prospecting right, retention permit, exploration right, mining right, mining permit or production right granted pursuant to the Mineral and Petroleum Resources Development Act (or a lease or sublease mentioned in section 11 of that Act in respect of such a right); and

[Paragraph (b) substituted by section 271 read with paragraph 184 of Sch. 1 of Act 28 of 2011]

(c)     wins or recovers a mineral resource originating from within the Republic,

all the members of that unincorporated body may elect that the unincorporated body is deemed to be a person for the purposes of this Act, the Royalty Act and the Income Tax Act as applied to the Royalty Act.

[Subsection (1) substituted by section 35(1) of Act 8 of 2010 deemed effective on 1 March, 2010]

(2)     On the day on which the members of an unincorporated body make an election as mentioned in subsection (1) all the members of that unincorporated body must elect a year of assessment in respect of that unincorporated body and that year of assessment must be the same year of assessment as that of a member of that unincorporated body.

(3)     If the members of an unincorporated body made an election mentioned in subsection (1)—

(a)     the liabilities and duties imposed under this Act and the Royalty Act in respect of that unincorporated body must be applied and performed by that unincorporated body separately from the members of that unincorporated body;

(b)     any other actions that are permitted by a person registered under this Act in respect of that unincorporated body must be performed by that unincorporated body separately from the members of that unincorporated body; and

(c)     section 10 of the Royalty Act applies to that unincorporated body for as long as that unincorporated body is deemed to be a person by virtue of the election made in terms of subsection (1).

(4)     Each member of an unincorporated body that made an election mentioned in subsection (1) is liable jointly and severally with the other members of that unincorporated body for—

(a)     the duties of that unincorporated body under this Act and the Royalty Act;

(b)     the royalty imposed under the Royalty Act on that unincorporated body in respect of all mineral resources transferred by that unincorporated body, while the member was a member of that unincorporated body.

(5)    If—

(a)     an unincorporated body of which the members made an election mentioned in subsection (1) is dissolved solely as a result of—

(i)      the retirement, withdrawal or death of one or more members of that unincorporated body; or

(ii)      the admission of a new member to that unincorporated body; and

(b)     the new unincorporated body which is brought into being as a result of the dissolution mentioned in paragraph (a) satisfies the requirements of subsection (1)(a) and (b),

the election made by the members of the dissolved unincorporated body as mentioned in subsection (1) remains in effect for purposes of the new unincorporated body notwithstanding that dissolution.

(6)     All the members of an unincorporated body that made an election mentioned in subsection (1) may at any time elect to terminate the registration of that unincorporated body effective on the day after the last day of the year of assessment in which that election was made.

[Section 4 substituted by section 63(1) of Act 18 of 2009 effective on 1 November, 2009]

Section 3 (MPRAA) – Cancellation of registration

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3    Cancellation of registration

(1)     A person registered under this Act that no longer qualifies for registration (or anticipates not qualifying for registration from a specified date) may apply to the Commissioner for cancellation of registration.

(2)     Upon receipt of an application mentioned in subsection (1), the Commissioner may cancel the registration of a person mentioned in subsection (1) effective on the day after the last day of the year of assessment in which that person no longer qualified for registration as mentioned in subsection (1).

(3)     The obligations and liabilities of a person under this Act and the Royalty Act in respect of anything done or omitted to be done by the person while a registered person are not affected by the cancellation of the registration of that person as mentioned in subsection (2).

Section 21 (MPRAA) – Short title and commencement

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21      Short title and commencement


(1)     This Act is called the Mineral and Petroleum Resources Royalty (Administration) Act, 2008.


(2)      This Act comes into operation-


(a)     in respect of sections 1, 2, 3, 4, 7, 17, 18 and 20 on 1 November 2009; and


(b)     in respect of sections 5, 6, 8, 9, 10, 11, 12, 13, 14, 15, 16 and 19 on 1 March 2010.

[Section 21 substituted by section 66(1) of Act 18 of 2009 effective on 1 November, 2009 to the extent that it relates to paragraph (a); and effective on 1 March, 2010 to the extent that it relates to paragraph (b)]

Section 20 (MPRAA) – Regulations

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20      Regulations


The Minister of Finance may make regulations—


(a)     to ensure that all foreign currency translations are consistently applied;


(b)     in respect of circumstances when a year of assessment may be shorter or longer than 12 months; or


(c)     with respect to any matter necessary to administer this Act or the Royalty Act.

Section 2 (MPRAA) – Registration

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Part II

Registration



2      Registration

(1)     A person qualifies for registration in terms of this Act if that person—

(a)     holds a prospecting right, retention permit, exploration right, mining right, mining permit or production right granted pursuant to the Mineral and Petroleum Resources Development Act or a lease or sublease mentioned in section 11 of the Mineral and Petroleum Resources Development Act in respect of such a right;

[Paragraph (a) amended by section 34(1)(a) of Act 8 of 2010 deemed effective on 1 November, 2009]

(b)     wins or recovers a mineral resource extracted from within the Republic; or

[Paragraph (b) substituted by section 34(1)(b) of Act 8 of 2010 deemed effective on 1 November, 2009]

(c)     elects to register for the purposes of this Act.

[Paragraph (c) added by section 34(1)(c) of Act 8 of 2010 deemed effective on 1 November, 2009]

(2)      A person that qualifies for registration as mentioned in subsection (1)—

(a)     on 1 November 2009—

i)       may apply to register with the Commissioner on or after 1 November 2009; and

(ii)      must apply to register with the Commissioner by 28 February, 2010; or

[Subparagraph (ii) substituted by section 34(1)(d) of Act 8 of 2010 deemed effective on 1 November, 2009]

(b)     after 1 November 2009 must apply to register with the Commissioner within 60 days after the day on which that person qualifies for registration.

[Subsection (2) substituted by section 62 of Act 18 of 2009]

(3)     The Commissioner must register a person that qualifies for registration and that registration takes effect from the beginning of the year of assessment during which the person qualifies for registration.

Section 19 (MPRAA) – Reporting, secrecy and disclosure

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19             Reporting, secrecy and disclosure

(1)     Despite Chapter 6 of the Tax Administration Act, the Commissioner must annually submit to the Minister of Finance a report, in the form and manner that the Minister may prescribe, within six months from the date that the Commissioner received the report from each extractor, advising the Minister of—

(a)     the volume of mineral resources transferred by each extractor;

[Paragraph (a) substituted by section 29(1)(b) of Act 39 of 2013 effective on 1 January, 2014 and applicable in respect of years of assessment commencing on or after that date]

(b)     the gross sales of each extractor as mentioned in section 6(1) and (2) of the Royalty Act;

[Paragraph (b) amended by section 38(1)(a) of Act 8 of 2010 and substituted by section 29(1)(b) of Act 39 of 2013 effective on 1 January, 2014 and applicable in respect of years of assessment commencing on or after that date]

(bA)   the adjusted gross sales of the extractor if that adjustment is required in terms of section 6(5) of the Royalty Act;

[Paragraph (bA) inserted by section 29(1)(c) of Act 39 of 2013 effective on 1 January, 2014 and applicable in respect of years of assessment commencing on or after that date]

(c)     the percentage determined in terms of section 4(1), (1A) and (2) of the Royalty Act;

[Paragraph (c) amended by section 24 of Act 18 of 2023]

(d)     the methodology employed to adjust the amount allowed to be deducted in respect of the use of assets or expenditure incurred in terms of section 5 of the Mineral and Petroleum Resources Royalty Act;

[Paragraph (d) added by section 38(1)(a) of Act 8 of 2010 deemed effective on 1 March, 2010]

(e)     the methodology employed to adjust the amount of gross sales determined in terms of section 6 of the Mineral and Petroleum Resources Royalty Act;

[Paragraph (e) added by section 38(1)(a) of Act 8 of 2010 deemed effective on 1 March, 2010]

(f)      the allocation of the amount in respect of assets used or expenditure incurred contemplated in section 5 of the Royalty Act per mineral resource;

[Paragraph (f) added by section 38(1)(a) of Act 8 of 2010 deemed effective on 1 March, 2010]

(g)     the amounts of the royalty imposed in terms of section 2 of the Royalty Act in respect of refined minerals and unrefined minerals, respectively;

[Paragraph (g) added by section 33(1)(b) of Act 21 of 2012 effective on 1 January, 2013]

(h)     the amount of earnings before interest and taxes determined in accordance with section 5(1) and (2) of the Royalty Act, respectively;

[Paragraph (h) added by section 33(1)(b) of Act 21 of 2012 effective on 1 January, 2013]

(i)      the amount of the royalty that would have been imposed on an extractor in respect of mineral resources transferred had that extractor not been exempt from the royalty in terms of section 7(1)(a) of the Royalty Act;

[Paragraph (i) added by section 33(1)(b) of Act 21 of 2012 effective on 1 January, 2013]

(j)      the amount of the royalty that would have been imposed on an extractor in respect of mineral resources transferred had that extractor not been exempt from the royalty in terms of section 7(1)(b) of the Royalty Act; and

[Paragraph ( j) added by section 33(1)(b) of Act 21 of 2012 effective on 1 January, 2013]

(k)     the amount of the royalty that would have been imposed on an extractor had that extractor not been exempt from the royalty in terms of section 8 of the Royalty Act.

[Subsection (1) amended by section 33(1)(a) of Act 21 of 2012, by section 29(1)(a) of Act 39 of 2013 and by section 46(1)(b) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date. Paragraph (k) added by section 33(1)(b) of Act 21 of 2012 effective on 1 January, 2013]

(2)     The Minister of Finance and every person employed or engaged by him or her with regard to all matters that may come to his or her knowledge by virtue of subsection (1) are subject to section 67(4) of the Tax Administration Act.

[Subsection (2) substituted by section 29(1)(d) of Act 39 of 2013 and by section 46(1)(c) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

(3)     . . . . . .

[Subsection (3) deleted section 46(1)(d) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

(4)     . . . . . .

[Subsection (4) deleted section 46(1)(d) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

(5)     . . . . . .

[Subsection (5) deleted section 46(1)(d) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

(6)     . . . . . .

[Subsection (6) deleted section 46(1)(d) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

(7)     The provisions of this section must not be construed as preventing—

(a)    . . . . . .

[Paragraph (a) deleted by section 29(1)(e) of Act 39 of 2013 effective on 1 January, 2014 and applicable in respect of years of assessment commencing on or after that date]

(b)     the Commissioner from disclosing to the Director-General of the Department of Mineral Resources; and

(c)     the Minister of Finance and the Commissioner from disclosing to the chief executive officer of the agency designated by the Minister responsible for Mineral Resources in terms of section 70 of the Mineral and Petroleum Resources Development Act, 2002 (Act 20 of 2002),

any information submitted under subsection (1).

[Subsection (7) substituted by section 38(1)(b) of Act 8 of 2010 and amended by section 46(1)(e) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

(8)     The provisions of subsection (2) apply to the persons referred to in subsection (7) and any person engaged or employed by them that has access to the information.

[Section 19 amended by section 46(1)(a) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date. Subsection (8) added by section 46(1)(f) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

Section 17 (MPRAA) – Administration of Act

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Part VI
Miscellaneous


17     Administration of Act


(1)     The Commissioner is responsible for administering this Act and the Royalty Act, in accordance with the provisions of the Tax Administration Act.

[Subsection (1) substituted by section 271 read with paragraph 190(a) of Act 28 of 2011]

(2)     Administrative requirements and procedures for purposes of the performance of any duty, power or obligation or the exercise of any right in terms of this Act are, to the extent not regulated in this Act, regulated by the Tax Administration Act.

[Subsection (2) substituted by section 271 read with paragraph 190(b) of Act 28 of 2011]


18     . . . . . .

[Section 18 repealed by section 271 read with paragraph 191 of Sch. 1 of Act 28 of 2011]

Section 16 (MPRAA) – Interest

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16     Interest

(1)     The Commissioner must pay interest in accordance with the provisions contained in Chapter 12 of the Tax Administration Act in respect of overpayment of an amount paid to the extent that that amount exceeds—

(a)     in the case where that amount was paid in respect of a notice of assessment, the amount so assessed; or

(b)     in any other case, the amount of royalty properly chargeable under the Royalty Act.

[Subsection (1) substituted by section 44(1)(a) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

(2)     A registered person must pay interest in accordance with the provisions contained in Chapter 12 of the Tax Administration Act—

(a)     in respect of so much of the amount that must be paid in terms of section 5(1) or (2), 5A or 6 as is not paid on the day by which that payment was required to be made under this Act; and

(b)     . . . . . .

(c)     in respect of so much of the amount that must be paid under an additional assessment issued by the Commissioner, other than an additional assessment under section 5A, as is not paid on the day by which that payment was required to be made.

[Subsection (2) substituted by section 44(1)(b) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

(3)      . . . . . .

[Subsection (3) deleted by section 44(1)(c) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]