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6.4. Reserves and Provisions

Generally provisions are not deductible for tax purposes. The law does, however, allow for the booking of a number of tax deductible provisions including:

  • Provision for the replenishment of natural resource deposits: up to a maximum of 5% of annual profits and must be used within 3 years from year booked or otherwise released into taxable income; and
  • Provision for the rehabilitation of mining sites: up to a maximum of 0.5% of annual turnover and must be used within 10 years of year booked or otherwise released into taxable income.