Gold Mining Formula
Trusha Ichharam Gold mining companies currently have a choice between two formulae used to calculate the tax rate to be applied to taxable income derived from gold mining operations. The formula used depends on whether companies elected to pay secondary tax on companies (standard formula) or not (higher formula). With the implementation of Dividend Tax effect 1 April 2012, secondary tax on companies will be repealed and the higher formula will no longer apply. Companies using the higher formula will therefore now use the standard formula to calculate the tax rate.
