SA rand					US dollar
2009	2010	Figures in million			2010	2009
		13	Taxation
			SA normal taxation
			Mining tax (a)
130	44		– current year		6	14
41	(1)		– prior year		–	5
			Non-mining tax (b)
159	40		– current year		5	18
5	1		– prior year		–	1
			Deferred tax (c)
358	364		– deferred tax		48	40
			Foreign normal taxation
(505)	(113)		– deferred tax (d)		(15)	(56)
188	335		Total normal taxation		44	22
			(a)	Mining tax on gold mining income in South Africa is determined according to a formula, based on the taxable income from mining operations. Gold mining companies within the group that have elected to be exempt from Secondary Tax on Companies (STC) are taxed at higher rates than those that have not made the election.
				All qualifying mining capital expenditure is deducted from taxable mining income to the extent that it does not result in an assessed loss. Accounting depreciation is eliminated when calculating the South African mining tax income. Excess capital expenditure is carried forward as unredeemed capital to be claimed from future mining taxable income. The group has several tax paying entities in South Africa. In terms of the mining ring-fencing application, each ring-fenced mine is treated separately and deductions can normally only be utilised against mining income generated from the relevant ring-fenced mine.
				The formulas for determining the South African gold mining tax rates for the 2009 and 2010 financial years are:
				Y = 43 – 215/X (entities whom elected not to pay STC)
				Y = 34 – 170/X (entities whom did not make the election)
				Where Y is the percentage rate of tax payable and X is the ratio of taxable income, net of any qualifying capital expenditure that bears to mining income so derived, expressed as a percentage.
			(b)	Non-mining income is taxed at 35% (exempt from STC) and 28% (no election made). Non-mining companies are taxed at the statutory corporate rate of 28%.
			(c)	The deferred tax rate used to calculate deferred tax is based on the current estimate of future profitability when temporary differences will reverse, based on tax rates and tax laws that have been enacted at balance sheet date. Depending on the profitability of the operations, the deferred tax rate can consequently be significantly different from year to year. The deferred tax rates of the group’s mining companies are as follows:
				Harmony Gold Mining Company Limited	23.1%	17.1%
				Randfontein Estates Limited	20.9%	20.2%
				Evander Gold Mines Limited	22.9%	6.9%
				ARMGold/Harmony Freegold Joint Venture
				Company (Proprietary) Limited	29.4%	28.8%
				Avgold Limited	0.0%	0.0%
				Kalahari Goldridge Mining Company Limited	21.0%	24.0%
			(d)	Mining and non-mining income of Australian and PNG operations is taxed at a standard tax rate of 30%.
			Income and mining tax rates
			The tax rates remained unchanged for the 2010 and 2009 financial years.
			Major items causing the group’s income tax provision to differ from the maximum mining statutory tax rate of 43% (2009: 43%) were:
(900)	(75)		Tax on net profit from continuing operations at the maximum mining statutory tax rate		(10)	(102)
(305)	(144)		Non-allowable deductions		(19)	(33)
5	24		Profit from associates		3	1
126	16		Difference between effective mining tax rate and statutory mining rate on mining income		2	14
100	22		Difference between non-mining tax rate and statutory mining rate on non-mining income		3	11
479	(726)		Effect on temporary differences due to changes in effective tax rates		(95)	53
(45)	–		Prior year adjustment – mining and non-mining tax		–	(5)
352	548		Capital allowance, sale of business and other rate differences		72	39
(188)	(335)		Income and mining taxation		(44)	(22)
9%	191%		Effective income and mining tax rate		183%	9%
			Deferred tax
			Deferred tax liabilities and assets on the balance sheet as at 30 June 2010 and 30 June 2009 relate to the following:
4 963	5 422		Gross deferred tax liability		711	643
4 786	5 406		Amortisation and depreciation		709	620
92	–		Product inventory not taxed		–	12
85	16		Other		2	11
(1 712)	(1 887)		Gross deferred tax asset		(248)	(222)
(1 409)	(1 506)		Unredeemed capital expenditure		(198)	(183)
(231)	(269)		Provisions, including non-current provisions		(35)	(30)
(72)	(112)		Tax losses		(15)	(9)
–	(1)		Disposal groups classified as held for sale		–	–
3 251	3 534		Net deferred tax liability		463	421

SA rand						US dollar
2009	2010	Figures in million				2010	2009
			Movement in the net deferred tax liability recognised in the balance sheet is as follows:
2 990	3 251		Balance at beginning of year			421	383
258	251		Total charge per income statement			33	29
1	32		Foreign currency translation			9	9
2	–		Tax directly charged to equity			–	–
3 251	3 534		Balance at end of year			463	421
			The following amounts that are expected to realise or be recovered in the next 12 months have been included in the deferred tax liabilities and assets:
113	284		Deferred tax liabilities			37	15
(94)	(187)		Deferred tax assets			(25)	(12)
19	97		Net current deferred tax liability			12	3
			As at 30 June, certain subsidiaries in the group had the following tax credits:
12 245	13 604		Unredeemed capital expenditure available for utilisation against future mining taxable income			1 783	1 586
190	394		Tax losses carried forward utilisable against taxable income			52	25
571	469		Capital Gains Tax (CGT) losses available to be utilised against future CGT gains.			61	74
2 927	2 947		As at 30 June, the group had not recognised the following deferred tax asset amounts			386	379
			The unrecognised temporary differences are:
7 155	8 165		Unredeemed capital expenditure			1 070	926
207	114		Tax losses			15	27
571	469		CGT losses			61	74
1 190	1 190		Temporary differences relating to investments in associates			156	154
			Secondary Taxation on Companies
			STC is a tax levied on South African companies at a rate of 10% with effect from 1 October 2007 on dividends distributed.
			Current and deferred tax is measured at the tax rate applicable to undistributed income and therefore only takes STC into account to the extent that dividends have been received or paid.
			On declaration of a dividend, the company includes the STC on this dividend in its computation of the income tax expense in the period of such declaration.
278	141		Available STC credits at end of year			18	35
			On 13 August 2010, the board of directors approved a final dividend for the 2010 financial year of 50 SA cents per share. The total dividend amounts to R214 million (US$29.3 million: calculated using the exchange rate on declaration date). As the dividends declared exceed the STC credits available, STC on the amount of R73 million is payable at a rate of 10%.