CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. SARS Issues Guide On Energy-Efficiency Tax Deduction

SARS Issues Guide On Energy-Efficiency Tax Deduction

by Lorys Charalambous, Tax-News.com, Cyprus

22 February 2016


The South African Revenue Service (SARS) has issued guidance on the tax deduction available for energy-efficiency savings under section 12L of the country's Income Tax Act.

Section 12L allows taxpayers to claim a deduction for most forms of energy-efficiency savings that result from activities performed in the carrying on of any trade or in the production of income.

Section 12L became effective on November 1, 2013, and applies up to years of assessment ending before January 1, 2020. The deduction reduces a taxpayer's taxable income. It is not limited to the taxable income of a taxpayer, and can therefore create an assessed loss.

For years of assessment commencing on or after March 1, 2015, the deduction is calculated at ZAR0.95 (USD0.06) per kilowatt hour of energy efficiency savings (previously ZAR0.45 per kilowatt hour).

SARS points out that attention should be paid to the method of calculating the baseline at the beginning of the year of assessment and the energy savings in multi-year projects. Certificates also need to be obtained from the South African National Energy Development Institute for each project and year of assessment.

Comments on the draft note are invited until March 18, 2016.

TAGS: South Africa | environment | compliance | Energy | tax | tax compliance | energy | tax authority | tax breaks | Africa | Tax

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »