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South Africa: Guidance implementing carbon tax rules

South Africa: Guidance implementing carbon tax rules

The first carbon tax payment will be due by the end of July 2020.


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As guidance under the carbon tax regime:

  • Regulations address the trade exposure allowance and the performance allowance—both allowances are included in a suite of allowances that may be used by a company to offset its carbon tax liability.
  • Carbon offset final regulations set forth the “ins and outs” of how carbon offsets can be used to reduce tax liabilities and clarify certain outstanding issues.
  • Rules relating to the customs and excise laws were amended with the insertion of environmental levy rules (54FD) to address the licensing of emissions facilities, the calculation of the amount of environmental levy payable, and the submission of carbon tax accounts and payment. 

These guidance items are some of the missing pieces to the complex carbon tax puzzle, and may provide taxpayers greater clarity regarding their carbon tax exposure.

Read a January 2020 report [PDF 360 KB] prepared by the KPMG member firm in South Africa

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