1 / 17

UN Financing for Development Office & IFAD Rome, 4-5 September 2007 M Grote National Treasury, South Africa

Tax Aspects of Domestic Resource Mobilisation – a Discussion of Enduring and Emerging Issues Taxation of Natural Resources – Annex: Cross-country comparisons: royalties & rent taxes . UN Financing for Development Office & IFAD Rome, 4-5 September 2007 M Grote National Treasury, South Africa.

salena
Télécharger la présentation

UN Financing for Development Office & IFAD Rome, 4-5 September 2007 M Grote National Treasury, South Africa

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Tax Aspects of Domestic Resource Mobilisation – a Discussion of Enduring and Emerging IssuesTaxation of Natural Resources – Annex:Cross-country comparisons: royalties & rent taxes UN Financing for Development Office & IFAD Rome, 4-5 September 2007 M Grote National Treasury, South Africa

  2. SA proposed royalty rates (Draft 2006)

  3. Cross-country analysis of royalty regimes

  4. Cross-country analysis of royalty regimes – African jurisdictions

  5. Western Australia – royalty rates as on 1 January 2003

  6. Western Australia – royalty rates as on 1 January 2003, in Australian $/c

  7. International royalty rates (in %) comparisons across commodities

  8. International royalty rates (in %) comparisons across commodities

  9. International royalty rates (in %) comparisons across commodities

  10. International royalty rates (in %) comparisons across commodities

  11. 2004/05 Cross-country tax rate analysis PriceWaterhouseCoopers Corporate Taxes – Worldwide Summaries April 2005 NBER Working Paper on Developing Countries’ Tax Structures

  12. 2004/05 Cross-country tax rate analysis PriceWaterhouseCoopers Corporate Taxes – Worldwide Summaries April 2005 NBER Working Paper on Developing Countries’ Tax Structures2006 Index of Economic Freedom – Heritage Foundation & Wall Street JournalDeloitte.Touche – Guide to Key Fiscal Information, Southern Africa, 2005/06

  13. 2004/05 Cross-country tax rate analysis PriceWaterhouseCoopers Corporate Taxes – Worldwide Summaries April 2005 NBER Working Paper on Developing Countries’ Tax Structures2006 Index of Economic Freedom – Heritage Foundation & Wall Street JournalDeloitte.Touche – Guide to Key Fiscal Information, Southern Africa, 2005/06

  14. SA gold mining tax formula • 1966 gold mining formula had average tax rate spreads ranging from 0% to 70.5%. (unacceptable, as every $ of profit should attract income tax, but govt. created incentive to mine marginal ore) • Only taxable income from 5% profit ratio upwards attracted tax • Currently, income derived from mining of gold is calculated according to following formulae (on basis of new 2005 corporate rate of 29%): • Y = 35 – 175/X (elected to be exempt from STC). • Y = 45 – 225/X (not exempt from STC), • where Y is the percentage tax payable and x is profit ratio of the mine, expressed as percentage. • Profit ratio (x) is calculated as follows: taxable income from gold mining over gross mining income.

  15. Tax effect of SA gold mining formula: Y = 45-225/X

  16. Cross-country analysis - oil & gas Jurisdictions favour: • Separate oil and gas tax legislation, not part of mining regime • back-end loaded regime due to immediate expensing of all investments Profile of ‘most favoured’ fiscal regime based on study (1997) comparing 43 countries: • Tax design based on field-by-field approach • 95,3% of countries levy CIT with average nominal rate of 33,9% • 83,7% impose CIT in combination with royalty • 12 apply sliding scale royalties based on production vols: 0-30% • 15 impose fixed royalties, from 12 to 15% • 14 front-end load through bonus bidding • 46,5% impose acreage fees • production sharing contracts are not favoured (only 4 then - more now) • carried equity participation by Government limited (12%) • rate of return-linked windfall profit taxes are mostly rejected

  17. Competitive outlook for key mining jurisdictions • Canadian Fraser Institute Annual Survey of Mining Companies: 2004/05 – based on feedback of 1 121 international senior & junior mining co’s • Policy Potential Index - report card to governments on attractiveness of respective mining policies, tax, environmental regs., admin regs & compliance burden, native land claims/equity participation, infrastructure, labour laws, political stability. Highest possible score on index is 100: • Nevada at 95 (highest), Manitoba 89, Alberta/Ontaria 78, Western Australia 74-78, Chile 74, Chile 74, Mexico 71, Ghana 60, Tanzania 56, China 49, Brazil 47, Peru 46, Zambia 38, Botswana 35, SA 32 (2002/03 still 47), Philippines 24, Russia 19 (4th lowest), DRC 11, Zimbabwe 8 (lowest) • Mineral Potential Index, rates region’s geological attractiveness: • Nevada 96 (highest), Chile 94, Quebec 89, W-Australia 87, Mexico 87, Brazil 83, Mali 80, Tanzania 77, Ghana 76, Peru 74, China 72, Botswana 67, SA 54 (2002/03 71), Russia 53, Zambia 53, Alaska 43, Zimbabwe 22, California 16 (lowest) • Best Practices Mineral Potential Index: shows mineral potential of countries, assuming their policies are based on best practice together with mineral potential: • Tasmania 100 (highest), Alaska 98, W-Australia 97, Russia 93, SA 91 (tied with New South Wales & South Australia, China, Zambia, Mexico), Botswana 84, Ghana & Mali 83, Zimbabwe 60, Ireland 38 (lowest).

More Related