South Africa Consults On Tax Allowances For Energy Efficiency

by Lorys Charalambous, Tax-News.com, Cyprus

19 September 2011

On September 16, South Africa’s Department of Energy (DOE) released, for public comment in the subsequent 60 days, regulations that would provide a tax allowance for energy efficiency savings.

Such regulations would stipulate that any company holding a certificate proving energy savings will be able to submit the certificate to the South African Revenue Service and claim the allowance.

In a statement, the DOE explained that the South African National Treasury had, in 2009, introduced several measures, mainly in the form of tax allowances, to promote investment towards reducing greenhouse gas emissions, and to improve the technology, infrastructure and design used by companies in the building of their facilities and plants.

It added that the Income Tax Act stipulated that the DOE should write regulations to specify how the energy savings certificates will work. The proposed regulations are therefore designed to enable that to be accomplished.

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