| (1) |
Subject to subsections (2) and (3), the amount of tax payable by a taxpayer in respect of a tax period must be calculated in accordance with the formula: |
[Words preceding formula of section 6(1) substituted by section 77(1)(a) of the Taxation Laws Amendment Act, 2020 (Act No. 23 of 2020), GG44083, dated 20 January 2021 - deemed to have come into operation on 1 January 2020 (section 77(2)]
X = <{[(E - S) x (1 - C)] - [D x (1-M)]} + {P x (1 - J)} + {F x (1 - K)}> x R
in which formula—
| (a) |
"X" represents the amount to be determined that must not be less than zero; |
| (c) |
"S" represents the number in respect of greenhouse gas emissions, expressed in terms of carbon dioxide equivalent that were sequestrated in respect of that tax period as verified and certified by the Department of Environmental Affairs; |
| (e) |
"D" represents the number in respect of the petrol and diesel related greenhouse gas emissions of that taxpayer in respect of that tax period expressed as a carbon dioxide equivalent, determined in terms of section 4(1) or (2)(a); |
| (f) |
"M" represents a number equal to the sum of the percentages of the allowances determined under sections 7, 12 and 13 in respect of that tax period, subject to section 14; |
| (g) |
"P" represents the number in respect of the total industrial process related greenhouse gas emissions of the taxpayer in respect of that tax period expressed as a carbon dioxide equivalent determined in terms of section 4(1) or (2)(c); |
| (h) |
"J" represents a number equal to the sum of the percentages of the allowances determined under sections 7, 8, 10, 11, 12 and 13 in respect of that tax period, subject to section 14; |
[Section 6(1)(h) substituted by section 93(1) of the Taxation Laws Amendment Act, 2019 (Act No. 34 of 2019), Notice No. 21, GG42951, dated 15 January 2020 - effective 1 June 2019]
| (i) |
"F" represents the number in respect of the total fugitive greenhouse gas emissions of the taxpayer in respect of that tax period expressed as a carbon dioxide equivalent determined in terms of section 4(1) or (2)(b); |
| (j) |
"K" represents the sum of the percentages of the allowances determined in terms of sections 7, 9, 10, 11, 12 and 13 in respect of that tax period, subject to section 14; and |
| (k) |
"R" represents the rate of tax prescribed under section 5: |
Provided that where the number in respect of the determination of the expression "(E-S)" in the formula is less than zero, that number must be deemed to be zero.
| (1A) |
The taxpayer must only be allowed a deduction as contemplated in subsection (1)(c) and defined in subsection (4)(a) if the Department of Forestry Fisheries and the Environment confirms, in writing, the specific amount of the greenhouse emissions sequestered in tonnes of carbon dioxide equivalent for a tax period. |
[Section 6(1A) inserted by section 56(1)(a) of the Taxation Laws Amendment Act, 2026, Notice No. 7344, GG54448, dated 1 April 2026 - comes into operation on 1 January 2026 (section 56(2))]
| (2) |
The amount of tax payable by a taxpayer in respect of the generation of electricity from fossil fuels conducting activities under the IPCC codes 1A1 for energy industries (including heat and electricity recovery from Waste), 1A2 for manufacturing industries and construction (including heat and electricity recovery from Waste) and 1A4 for other sectors (including heat and electricity recovery from Waste) in respect of a tax period must be calculated in accordance with the formula: |
X = A – B [−C]
in which formula—
| (a) |
"X" represents the amount to be determined that must not be less than zero; |
| (b) |
"A" represents the amount of tax payable in respect of a tax period determined in terms of subsection (1); |
| (c) |
"B" represents an amount equal to the quantity of renewable electricity (kWh) purchased under a power purchase agreement multiplied by the renewable energy premium determined by the Minister by notice in the Gazette in respect of a tax period, until 31 December 2030: Provided that the amount may not exceed the amount determined in terms of the following formula: |
Bmax = A1A1 − (Egen × Rx),
in which formula—
| (i) |
"Bmax" is the amount to be determined; |
| (ii) |
"A1A1" represents carbon tax liability specifically for electricity generators under IPCC code 1A1; |
| (iii) |
"Egen" represents amount of electricity generated by that entity/taxpayer (in kWh) from coal, petroleum-based liquid fuels and natural gas; and |
| (iv) |
"Rx" represents an amount of R0.035/kWh (3.5 cents per kWh). |
[Section 6(2) substituted by section 56(1)(b) of the Taxation Laws Amendment Act, 2026, Notice No. 7344, GG54448, dated 1 April 2026 - comes into operation on 1 January 2026 (section 56(2))]
| (3) |
The amount of tax payable by a taxpayer that is a petroleum refinery in respect of a tax period must be calculated in accordance with the formula: |
X = A – (B x P)
in which formula—
| (a) |
"X" represents the amount to be determined that must not be less than zero; |
| (b) |
"A" represents the amount of tax payable in respect of a tax period determined in terms of subsection (1); |
| (c) |
"B" represents an amount of 0.99 cents per litre; and |
| (d) |
"P" represents the total amount of petrol produced expressed in litres. |
[Section 6(3)(c) substituted by section 8(1) of the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 3 of 2026, Notice No. 7342, GG54446, dated 1 April 2026 - deemed to have come into operation on 1 January 2025 (section 8(2))]
| (4) |
For the purposes of this section, ‘sequestrate’ means— |
| (a) |
the process of storing a greenhouse gas in forestry plantations and harvested wood products within the operational control of the taxpayer and third-party timber production in respect of fuel combustion emissions declared in terms of IPCC codes 1A2d for pulp, paper and print and 1A2j for wood and wood products in terms of section 4(1); or |
| (b) |
the process of storing a greenhouse gas in forestry plantations and harvested wood products within the operational control of the taxpayer and third-party timber production in respect of fuel combustion emissions declared in terms of IPCC codes 1A2d for pulp, paper and print and 1A2j for wood and wood products or increasing the carbon content of a carbon reservoir other than the atmosphere in respect of fuel combustion emissions declared in terms of section 4(2)(a). |
[Section 6(4) substituted by section 56(1)(c) of the Taxation Laws Amendment Act, 2026, Notice No. 7344, GG54448, dated 1 April 2026 - comes into operation on 1 January 2026 (section 56(2))]
| (5) |
For the purposes of this section, ‘renewable electricity purchased under a power purchase agreement’ includes renewable electricity purchased under an agreement ceded to the National Transmission Company of South Africa. |
[Section 6(4) inserted by section 62(1) of the Taxation Laws Amendment Act 42 of 2024, Notice No. 5736, GG51826, dated 24 December 2024 - is deemed to have come into operation on 1 January 2024 (section 62(2))]
| (6) |
TP = (E_actual − E_budget) × R_tax |
in which formula—
| (a) |
"TP" represents the tax payable; |
| (b) |
"E_actual" represents the greenhouse gas emissions reported to the Department of Forestry, Fisheries and the Environment, as contemplated in section 30(2)(a)(i) of the Climate Change Act, 2024; |
| (c) |
"E_budget" represents an amount of carbon budget, as contemplated in section 27 of the Climate Change Act, 2024 and determined in accordance with section 30(2)(a)(i) of that Act; and |
| (d) |
"R_tax" represents a rate of tax of (R640/tCO2e). |
[Section 6(6) inserted by section 56(1)(d) of the Taxation Laws Amendment Act, 2026, Notice No. 7344, GG54448, dated 1 April 2026 - comes into operation with effect from a date determined by the Minister of Finance by notice in the Gazette (section 56(3))]
National Health Act, 2003
