Home  »  Articles   »   Carbon Tax Offsets Regulations Published

Carbon Tax Offsets Regulations Published

December 2, 2019

National Treasury

2 December 2019

Regulations setting out the criteria for carbon tax offsets have been drawn up.

National treasury published the regulations in Government Gazette 42873.

They were drafted in terms of Section 13 of the Carbon Tax Act.

The section stipulates that taxpayers “must 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”.

The regulations focus on allowance of offset in respect of an approved project against carbon tax liability; offset creation and utilization period; limitation on allowance; designation of administrator; creation of offset registry; maintaining, overseeing of offset registry and access to offset registry; procedure for claiming allowance by taxpayer; duties of administrator for purpose of claiming of allowance by taxpayer and requirements for documents.

Approved projects qualifying for offsets must be undertaken in South Africa on or after 1 June 2019 and involve activities not subject to the carbon tax.

The regulations came into effect on 1 June 2019.

In Gazette 42876, treasury published amended regulations for the Accounting Standards Board.

A new regulation 9A deals with the appointment, functions and powers of ex officio members.

In Gazette 42872, treasury published draft Financial Sector Regulation Act regulations for comment.

Amendments are aimed to streamline and simplify the process to finalise the appointments process for the Commissioner and Deputy Commissioners of the Financial Sector Conduct Authority (FSCA), provide for a more effective transitional management committee during the transitional period until the FSCA Commissioner assumes office and provide for a more efficient and streamlined appointment process for the Commissioner and Deputy Commissioners of the FSCA.

Comment is invited until 24 January 2020.

In a separate matter, the South African Revenue Service has, in Gazette 42862, published an amendment to Customs and Excise Act rules.

A new item 200.08 is added focused on places where container depots may be established. Komatipoort is added to the list.

In Gazette 42861, the Independent Regulatory Board for Auditors seeks nominations of candidates to serve on its accreditation committee, tasked with evaluating applications by professional bodies that seek accreditation.

Applications are invited until 15 January 2020.