Will penalties be levied on underestimation of royalty payable?
Yes. If the royalty paid is underestimated by an amount of more than 20%, the Commissioner may impose a penalty that may not exceed 20%

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 even if you are making a loss.

Is the Mineral Royalty payable on my profit?
No. The Mineral Royalty is payable on your gross sales for the particular mineral resource.

Who is exempt from the Mineral Royalty?
Certain small Businesses are exempt from Mineral Royalty. The following conditions must be met on an annual basis: The gross sales of the extractor in respect of all mineral resources transferred do not exceed R10 million during the year.

Will I receive a Mineral Royalty tax number on registration?
On registration you will receive an income tax reference number. On the registration form (RAV01) you may then subscribe for tax type MPRR.