- 2 Marks
Question
The following data relates to Nyametsew Mining Company for 2018 year of assessment. Production – 2,000,000 Ounces Revenue – GH¢10,000,000 Cost of Production – GH¢4,000,000
Required: Compute the Royalty Payable.
Answer
Royalty Payable
Rate of tax is 5%
Revenue = 10,000,000
Royalty = 5% of 10,000,000 = GH¢500,000.00
Royalty Payable = GH¢500,000
- Tags: Mineral taxation, Minerals and mining, Revenue-based royalty
- Level: Level 3
- Topic: Minerals and mining
- Series: NOV 2019
- Uploader: Theophilus