Exxaro Resources Limited
Tax report for the year ended 31 December 2022
| 2022 (Rm) |
2021 (Rm) |
|||
| Payments to government (taxation contribution) | 7 250 | 2 933 | ||
|---|---|---|---|---|
| Direct taxes per country | 4 110 | 1 308 | ||
| South Africa | 4 086 | 1 289 | ||
| Switzerland | 24 | 19 | ||
| Indirect taxes | 1 036 | 787 | ||
| VAT | 1 025 | 775 | ||
| Levied on purchases of goods and services | (3 276) | (3 094) | ||
| Charged on turnover | 4 301 | 3 869 | ||
| Dividend withholding tax – local | 1 | 1 | ||
| Dividend withholding tax – Switzerland | 10 | 11 | ||
| Levies paid to government | 2 104 | 838 | ||
| Rates and taxes | 25 | 25 | ||
| Mineral and petroleum resources royalty | 1 988 | 733 | ||
| Compensation Fund | 17 | 15 | ||
| Unemployment Insurance Fund | 15 | 14 | ||
| Carbon tax | 3 | 2 | ||
| Skills development levy | 56 | 49 | ||
| 2022 (Rm) |
2021 (Rm) |
|||
| Additional amounts collected by the group on behalf of government | 1 622 | 1 404 | ||
|---|---|---|---|---|
| Unemployment Insurance Fund | 15 | 14 | ||
| Pay As You Earn tax deducted from remuneration paid | 1 607 | 1 390 | ||
The difference in the standard rate of 28% is explained below.
| For the year ended 31 December | 2022 (%) |
2021 (%) |
| Tax as a percentage of profit before tax | 19.2 | 13.6 |
|---|---|---|
| Tax effect of: | ||
| – Net capital losses1 | 0.0 | (0.9) |
| – Impairments charges2 | (0.1) | 0.0 |
| – Expenses not deductible for tax purposes3 | (0.2) | 0.7 |
| – Exempt income4 | 0.1 | 0.1 |
| – Reduction in tax rate5 | 1.4 | 0.0 |
| – Post-tax equity-accounted income6 | 8.1 | 14.5 |
| – Remeasurements of foreign tax rate differences | 0.2 | 0.1 |
| – Prior year tax adjustments | 0.2 | 0.1 |
| – Deferred tax assets not recognised7 | (0.3) | 0.0 |
| – ECLs on financial assets at amortised cost8 | (0.1) | 0.0 |
| – Dividend withholding tax | 0.1 | 0.1 |
| – Imputed income from controlled foreign companies and investments9 | (0.6) | (0.3) |
| Standard tax rate | 28.0 | 28.0 |
| Effective tax rate, excluding income from equity-accounted investments | 27.1 | 31.9 |
| 1 There were no significant capital assets disposed of during the current year. | ||
| 2 Relates to the impairment of LightApp Technologies Limited. | ||
| 3 Expenses not deductible for tax purposes: | (0.2) | |
| – Consulting, legal and other professional fees | (0.1) | (0.1) |
| – Enterprise supplier development grants | (0.1) | |
| – Share-based payments | 0.2 | 0.3 |
| – Penalties and interest on taxes | 0.0 | (0.1) |
| – Distribution to beneficiaries of Exxaro ESOP Trust | (0.4) | (0.3) |
| – Other10 | 0.2 | (0.5) |
| 4 | Mainly relates to dividends received by Exxaro ESOP Trust and Exxaro Community NPC - tax exempt institutions. |
| 5 | The statutory company tax rate changed effectively for years of assessment beginning on or after 1 April 2022 from 28% to 27%. The deferred tax assets and liabilities closing balances as at 31 December 2022 therefore needed to be restated to the new tax rate of 27%. |
| 6 | Relates mainly to equity-accounted income of Sishen Iron Ore Company Proprietary Limited. |
| 7 | Due mainly to increased losses in The Vryheid (Natal) Railway Coal & Iron Company Proprietary Limited (Hlobane) and Coastal Coal Proprietary Limited, on which no deferred tax assets are recognised. In the prior year deferred tax assets that were not recognised were reduced by deferred tax assets reinstated in Forzando Proprietary Limited which was sold in the prior year. |
| 8 | Relates to expected credit losses on loans which do not qualify for section 11(j). |
| 9 | Relates to increased imputed income from EITAG in terms of section 9D of the Income Tax Act due to favourable coal prices. |
| 10 | Mostly relates to foreign tax credits in respect of EITAG. |
RECONCILIATION OF TAX ACCRUAL TO CASH TAX PAID
(Rm)
Report Index