What’s New?
- 30 September 2019 – MPRR FAQ’s
The purpose of the FAQs is to assist MPRR clients to prepare for and subscribe for eFiling and payment using the SARS eFiling system. Click here for the FAQs. - 13 September 2019 – Payment changes
MPRR Payments can now only be made via eFiling into the SARS account and each payment must be accompanied by a completed return (MPR3). Payments can be made via the eFiling ‘Additional Payments’ function (also referred to as ‘Ad Hoc’ payment) to the ‘MINR’ tax type.
What must a taxpayer do to comply with the eFiling channel requirements?
- If already using eFiling and making payments via eFiling:
- Continue to use ONLY the eFiling process for making MPRR payments
- If not already using eFiling or not making payments via eFiling:
- Discontinue making EFT payments through online banking or Over the Counter payments at bank branches process
- Register for eFiling if not already registered to file other taxes via eFiling
- Capture and submit your banking details on eFiling for payments to SARS
- Provide any requested information to SARS to confirm banking details.
What is MPRR?
Who is it for?
- Any persons/entity who holds a prospecting right, retention permit, exploration right, mining right, mining permit or production right or a lease or sublease in respect of such a right; or
- Any persons/entity who wins or recovers a mineral resource extracted from within the Republic.
What steps must I take?
Once registration and subscription is in place, the declaration process should be followed. The completed MPR3 return must be completed, scanned and emailed to mineralroyalty@sars.gov.za.
What is the rate for the royalty?
- for refined mineral resources: minimum of 0.5% to a maximum of 5%
- for unrefined mineral resources: minimum of 0.5% to a maximum of 7%.
When and how should the royalty be paid?
Note that each payment must be accompanied by a completed MPR3 form as required by legislation for the two provisional payments, the third excess payment and the final return (if a further payment is necessary).
Phase | Description | Date of release | Outcome of release |
---|---|---|---|
Phase 1
|
New MPR3 return (form) released. The form includes the previous MPR2 payment advice/ return as well as the old MPR3. The RAV01 will still be used to register a legal entity (single registration), and the MPR1 for subscription to MPRR. | 01 Oct 2018 | Successfully released, published and in use from 01 October 2018. All MPRR returns must be submitted on this new MPR3, even for prior periods. |
Phase 2
|
Master data system release and registration of the taxpayer. Creation of the taxpayer’s account and confirmation of subscription to MPRR (dependency – master data must be cleansed). The account number (MPRR tax reference number) will start with “814….”. New registrations and subscriptions for MPRR will be submitted via the new RAV01 form (replacing the MPR1 form). Refer to the registration page on the SARS website for more details. | 25 January 2019 | Implemented |
Phase 3
|
New eFiling payment channel release. De-activation of the other current payment channels – via EFT and Over the Counter payments at bank branches (Payments@Banks), as well as the current channel available via eFiling for MPRR payments. | 13 September 2019 | Implemented Communications to taxpayers |
Phase 4
|
Release of the eFiling channel to submit returns and pay to the new 814-account number. A monthly Statement of Account will be available. | Second quarter 2021 | Release date to be confirmed and communicated to the taxpayers |
Phase 5
|
Release of the eAccount and interim Statement of Account on eFiling to enable the MPRR taxpayers to maintain the account. This is the full account functionality and final release. | Fourth quarter 2021 | Release date to be confirmed and communicated to the taxpayers |
Section of MPR3 Return | Filing Obligation | Payment Obligation |
---|---|---|
First Estimate |
First Estimate return must be submitted on or before the end of six (6) months, on or after the start of the year of assessment. | First payment – 50% of estimated total liability for the year of assessment – payment is due six (6) months on or after start of tax year-end. |
Second Estimate |
Second Estimate return must be submitted on or before the end of the year of assessment. | Second payment – balance of estimated total liability for the year of assessment – payment is due on or before tax year-end. |
Return of Excess |
An optional third top-up return, referred to as the “Return of Excess”, can be used to declare additional liability for the year of assessment, that was not catered for in the first and second estimate returns. To be submitted on or before the end of six (6) months after the end of the year of assessment. | Optional Top-up Third Payment – Amounts not catered for in first and second estimate for the year of assessment is due on or before six (6) months after the end of the year of assessment. |
Annual Declaration | An annual return must be submitted twelve (12) months after the end of the year of assessment for final reconciliation purposes. | Final liability settlement – last top-up payment is due six (6) months after the end of the year of assessment. Any payments relating to the particular tax year after this date will attract additional interest |
Related Documents
GEN-GEN-01-G01 – Guide for Completion for Mineral and Petroleum Resources – External Guide
LAPD-Gen-G01 – Taxation in South Africa
LAPD-Gen-G02 – Guide for Tax Rates Duties Levies
LAPD-IT-G19 – Comprehensive Guide to Dividends Tax
LAPD-IT-G24 – Guide on Mutual Agreement Procedures
MPR03 – Return of Royalty – External Form
MPR1 – Mineral and Petroleum Resources Royalty Application Form – External Form
Frequently Asked Questions
FAQ: Will penalties be levied on underestimation of royalty payable?
Yes. If the royalty paid is underestimated by an amount...
Read MoreFAQ: Do I need to pay the Mineral Royalty even if I am making a loss?
Yes. A minimum royalty rate of 0.5% must be paid...
Read MoreFAQ: Is the Mineral Royalty payable on my profit?
No. The Mineral Royalty is payable on your gross sales...
Read MoreFAQ: Who is exempt from the Mineral Royalty?
Certain small Businesses are exempt from Mineral Royalty. The following...
Read MoreFAQ: Will I receive a Mineral Royalty tax number on registration?
On registration you will receive an income tax reference number....
Read More