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South Africa: Carbon tax return filing, payment deadline extended (COVID-19)

South Africa: Carbon tax return filing, payment

Relief from the filing and payment requirements for the carbon tax was announced 21 April 2020. The relief is in response to the coronavirus (COVID-19) pandemic.

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The carbon tax-related relief is a three-month extension of the carbon tax accounts filing and the first payment of the carbon tax. The submission of annual carbon tax accounts and payment of the carbon tax is now due by 31 October 2020 (from 31 July 2020) for the period ended 31 December 2019.


Background

The carbon tax—administered as part of the Customs and Excise Act, No 91 of 1964 as an Environmental Levy on Carbon Emissions—requires that those that operate emissions-generation facilities at a combined capacity equal to or above the legislated carbon tax threshold must register with the South African Revenue Service and obtain a consolidated license for the combination of the emissions facilities that generate emissions subject to the carbon tax. Read TaxNewsFlash

In addition, every licensee must submit, for each tax period, the annual carbon tax accounts and payment of the environmental levy “in the month of July of the year following the tax period, but not later than the penultimate working day of that month.” Therefore, for the first carbon tax period ended 31 December 2019, the deadline would be 31 July 2020.


KPMG observation

The three-month extension relating to the carbon tax may provide relief for a number of taxpayers—not just those with cash flow constraints, but also those that have experienced administrative delays with carbon tax registrations.


Read an April 2020 report [PDF 138 KB] prepared by the KPMG member firm in South Africa

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