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Income Tax Act, 1962 (Act 58 of 1962)

Regulations in terms of section 12L of the Income Tax Act, 1962, on the allowance for energy efficiency savings

5. Baseline calculation

 

 

(1) For the purpose of this regulation "greenfield project" means a project that represents a wholly new project which does not utilise any assets other than wholly new and unused assets.

 

(2) The baseline—
(a) for the first year of assessment for which the allowance is claimed must—
(i) in the case of a greenfield project, be constructed from comparable data in the relevant sector; or
(ii) in any other case, be derived from data gathered during the year of assessment preceding the first year of assessment for which the allowance is claimed; and
(b) must be adjusted for every year of assessment for which the allowance is claimed—
(i) in accordance with the methodology in the standard; and
(ii) by taking into account the reporting period energy use at the end of the immediately preceding year of assessment for which the allowance was claimed to compute the baseline for the beginning of the subsequent year of assessment for which the allowance is claimed.