30 July 2019
The 2019 Draft Income Tax Amendment Bill has been published for comment.
According to a national treasury statement, the draft bill seeks to give effect to Budget announcements on environmental tax incentives.
“The 2019 Draft Income Tax Amendment Bill contains environmental tax incentive announcements made in Chapter 4 the 2019 Budget Review that deal with the repeal of the exemption for certified emissions reductions as well as the extension of the energy efficiency savings incentives.”
The proposed amendments also provide the necessary legislative amendments required to implement the carbon tax, in effect on 1 June 2019.
The draft bill aims to:
• amend the Income Tax Act, 1962, so as to amend a date in a provision;
• repeal certain provisions; and
• provide for matters connected therewith.
The proposed legislation seeks to repeal the tax exemption for certified emission reductions effective from the date on which the carbon tax came into effect.
It also wants to extend the energy efficiency savings incentive to allow for energy efficiency savings deductions from the income of any person carrying on any trade in respect of year of assessment ending before 1 January 2023, effective from 1 January 2020.
Comment is invited until 23 August 2019.