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(1) Despite section 59(3), dividend paid to a resident company by

(a) a resident company that conducts or that has conducted a mineral operation; or

(b) a resident company that is a partner in a partnership that conducts or that has conducted a mineral operation. is subject to withholding tax in accordance with this Act.

(2) Subject to subsection (3), a resident person shall withhold tax at the rate provided for in paragraph 6 of the First Schedule when the person pays for unprocessed precious minerals located in the country or won from the country.

(3) This section does not apply to

(a) a payment made by an individual, unless the payment is made in the course of conducting a business;

(b) a payment made by the holder of a small scale mining licence to a labourer with respect to winnings from the area covered by the licence; or

(c) a payment received by a holder of a large scale mining lease.

(4) Division II of Part VIII applies to tax required to be withheld under this section.

(5) For purposes of this section, unless the context otherwise requires,

“large scale mining lease” means a mining lease that is not the subject of a small scale mining licence;

“small scale mining” has the meaning given in the Minerals and Mining Act, 2006 (Act 703);

“small scale mining licence” means a small scale mining licence granted under section 82 of the Minerals and Mining Act, 2006 (Act 703); and

“unprocessed precious mineral” means unprocessed gold and rough diamonds within the meaning given in the Minerals and Mining Act, 2006 (Act 703) and other minerals as may be prescribed by Regulations.