Author: admin_kmos

Section 14 (CTA) – Limitation of sum of allowances

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Part III

Limitation of allowances

 

14. Limitation of sum of allowances

 

A taxpayer, other than a taxpayer in respect of which the maximum total allowance stipulated Schedule 2 constitutes 100 per cent, must only receive the sum of the allowances contemplated in Part II in respect of a tax period to the extent that the sum of those allowances does not exceed 95 per cent of the total greenhouse gas emissions of that taxpayer in respect of that tax period as determined in terms of the column “Maximum total allowances %” in Schedule 2.

Section 13 (CTA) – Offset allowance

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13. Offset allowance

(1)     Subject to subsection (2), a taxpayer may reduce the amount in respect of the carbon tax for which the taxpayer is liable in respect of a tax period by utilising carbon offsets as prescribed by the Minister.

[Subsection (1) substituted by section 97(1) of Act 34 of 2019 deemed effective on 1 June, 2019]


(2)     The reduction of the liability for the carbon tax allowed in terms of subsection (1) must not exceed so much of the percentage of the total greenhouse gas emissions of a taxpayer in respect of a tax period as is determined by matching the line in the column “Activity of Sector” with the percentage in the corresponding line of the column “Offsets allowance %” in Schedule 2.

Section 12 (CTA) – Carbon budget allowance

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12. Carbon budget allowance

 

(1)     Subject to subsection (2), a taxpayer that conducts an activity that is listed in Schedule 2 in the column “Activity/Sector” and participates in the carbon budget system from 1 January 2021 to 31 December 2025, must receive an additional allowance of five per cent of the total greenhouse gas emissions in respect of a tax period ending on or before 31 December 2025.

[Subsection (1) substituted by section 64(1) of Act 20 of 2021, by section 66(1) of Act 17 of 2023 and by section 57(1)(a) of Act 5 of 2026 deemed effective on 1 January, 2025]

 

(2)     A taxpayer must only receive the allowance as contemplated in subsection (1) if the Department of Forestry, Fisheries and the Environment confirms in writing that that taxpayer is participating in the carbon budget system as referred to in subsection (1).

[Subsection (2) substituted by section 57(1)(b) of Act 5 of 2026 deemed effective on 1 January, 2025]

Section 11 (CTA) – Performance allowance

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11. Performance allowance

(1)     A taxpayer that has implemented measures to reduce the greenhouse gas emissions of that taxpayer in respect of a tax period must receive an allowance in respect of that tax period not exceeding five per cent of the total greenhouse gas emissions of that taxpayer during that tax period, determined in accordance with the formula:

Z = (A  of  B – C) x D

in which formula-

(a)     “Z” represents the percentage to be determined that must not be less than zero;

(b)     “A” represents-

(i)      the sector or subsectionector greenhouse gas emissions intensity benchmark as prescribed by the Minister; or

(ii)     where no value is prescribed as required by subparagraph (i), the number zero;

(c)     “B” represents the measured and verified greenhouse gas emissions intensity of a taxpayer in respect of a tax period;

(d)     “C” represents the number one; and

(e)     “D” represents the number 100.

(2)     For the purposes of this section “measures” include action taken to reduce greenhouse gas emissions in respect of a tax period.

Section 10 (CTA) – Trade exposure allowance

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10. Trade exposure allowance

A taxpayer that is liable for the carbon tax in respect of greenhouse gas emissions must receive an allowance up to a maximum of ten per cent in respect of trade exposure as measured by value of exports plus imports divided by the total production by sector or subsector that must be determined in a manner prescribed by the Minister by regulation.

Section 8 (MPRAA) – Maintenance of records

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8     Maintenance of records

In addition to the records required under the Tax Administration Act, a registered person must retain the following records in respect of mineral resources extracted from within the Republic:

(a)     particulars of “earnings before interest and taxes” as mentioned in section 5 of the Royalty Act with sufficient detail to identify all the gross sales, income and allowable deductions in respect of those earnings;

(b)     particulars of “gross sales” as mentioned in section 6 of the Royalty Act with sufficient detail to identify all transferred mineral resources in respect of those gross sales and the persons acquiring those transferred mineral resources;

(c)     the quantity of mineral resources—

(i)      extracted but not transferred; and

(ii)     transferred,

by that registered person with sufficient detail to identify the mineral resources extracted but not transferred and the mineral resources transferred;

(d)     the accounting income with sufficient detail to identify the “earnings before interest and taxes” as mentioned in section 5 of the Royalty Act that relate to that accounting income;

(e)     any ledger, cash book, journal, cheque book, bank statement, deposit slip, paid cheque, invoice, other book of account or financial statement; and

(f)      any information specifically required by the Commissioner by public notice.

[Section 8 amended by section 271 read with paragraph 187(a) and (b) of Schedule 1 of Act 28 of 2011 and substituted by section 39(1) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]


Part IV
Repealed

[Part IV repealed by section 40(1) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

9  . . . . . .

[Section 9 amended by section 271 read with paragraph 188 of Schedule 1 of Act 28 of 2011 and repealed by section 40(1) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

10  . . . . . .

[Section 10 repealed by section 271 read with paragraph 189 of Schedule 1 of Act 28 of 2011 and by section 40(1) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

11  . . . . . .

[Section 11 repealed by section 271 read with paragraph 189 of Schedule 1 of Act 28 of 2011 and by section 40(1) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

12     . . . . . .

[Section 12 repealed by section 271 read with paragraph 189 of Schedule 1 of Act 28 of 2011 and by section 40(1) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

Section 6A (MPRAA) – Refunds

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6A      Refunds

If in respect of a year of assessment the amount of the royalty payable by a registered person is less than the sum of the payments made by that registered person in terms of sections 5, 5A and 6, the excess must be refunded by the Commissioner to the registered person under Chapter 13 of the Tax Administration Act.

[Section 6A inserted by section 38(1) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]


7   . . . . . .

[Section 7 repealed by section 271 read with paragraph 186 of Sch. 1 of Act 28 of 2011]