Carbon Tax Series - 2022


Date: Jan 18, 2022 - Oct 13, 2022

CPD hours: 2 Hours

Time: 15:00 - 17:00

Event Type: Webinar

Presenter: Jason Daniel
Tax Manager I Tax and Legal Services department, PwC South Africa

The Carbon Tax Act became effective on 1 June 2019. For the period 01 January 2021 to 31 December 2021, Carbon Tax must be levied at a rate of R134/tCO2e, in respect of the sum of the scope 1 direct greenhouse gas (GHG) emissions of a taxpayer. All dates included in this series:  18 January, 15 February 2022, 21 March 2022, 20 September 2022 and 13 October 2022. 

Overview

The carbon tax rate will increase by the amount of the consumer price inflation (CPI) of the preceding tax period plus two per cent until 31 December 2022, and thereafter, only by CPI of the preceding tax period. The GHG emissions resulting from fuel combustion activities, industrial processes and fugitive emissions expressed as a carbon dioxide equivalent will be taxable. A person conducting an activity in South Africa resulting in GHG emissions equal to and/or above the thresholds as provided for in Schedule 2 of the Carbon Tax Act, will be subject to carbon tax.

This series of five webinars is aimed at addressing and unpacking the nuances of carbon tax and its interplay with environmental legislation, providing practical insight and an overview of the key provisions within the Carbon Tax Act, and exploring the impact that carbon tax act has on businesses. We look to compare carbon tax in South Africa against environmental levies implemented in other jurisdictions to understand the key successes and failures of carbon tax in South Africa. Finally, we aim to examine carbon taxes through a broader lens by examining the economic impact of its implementation and how carbon taxes will drive the focus on Environmental, Social and Governance (ESG) factors.

Part 1: Carbon Tax 101 – An Overview

18 January 2022 I Click here to read more

Part 2: Carbon Tax – Who is Ultimately Affected by its Implementation?

15 February 2022 I Click here to read more

Part 3: Carbon and Environmental Tax: Budget 2022

23 March 2022 I Click here to read more

Part 4: Carbon Tax Proposed Amendments & Green Incentives

20 September 2022 I Click here to read more

Part 5: Carbon Tax, Carbon Pricing and ESG: A Global Perspective

13 October 2022 I Click here to read more


Webinar Series Content

Part 1: Carbon Tax 101 – An Overview

18 January 2022

This session will cover the following:

  • What is carbon tax:
    • The carbon tax landscape in South Africa.
    • Reasons as to why carbon tax was introduced.
    • The Carbon Tax Act framework.
    • Phase 1 of carbon tax vs phase 2 of carbon tax.
    • Who is considered a taxpayer under the Carbon Tax Act?
  • Greenhouse gas emissions covered:
    • The national environmental management: Air Quality Act.
    • The national greenhouse gas emission reporting regulations.
    • The technical guidelines for monitoring, reporting and verification of greenhouse gas emissions by industry.
    • The linkage between the Carbon Tax Act and environmental legislation.
    • Section 4 of the Carbon Tax Act: “The Tax Base.”
  • Carbon tax calculation:
    • Section 6 of the Carbon Tax Act.
    • SARS DA180: Environmental levy accounts.
  • Allowances:
    • Basic tax-free allowance.
    • Process emissions allowance.
    • Fugitive emissions allowance.
    • Trade exposure allowance.
    • Performance allowance.
    • Carbon budget allowance.
    • Carbon offsets allowance.
  • Compliance:
    • SARS DA185: Registration and licensing requirements.

Part 2: Carbon Tax – Who is Ultimately Affected by its Implementation?

15 February 2022

This webinar will deal with:

  • Who are the supposed or intended targets?
    • Section 3: Persons subject to carbon tax.
    • Identification of activities undertaken by taxpayers in terms of Schedule 2 of the Carbon Tax Act.
    • Assigned thresholds under the Carbon Tax Act – what do they mean?
    • The meaning of a “person.”
    • The meaning of “conducting an activity.”
    • The linkage between “operational control.”
  • Who is effectively affected?
    • Direct vs indirect impact of carbon tax.
    • Eskom and the Carbon Tax Act.
  • How much tax is being generated?
    • A look into the amount of revenue generated by carbon tax.
  • A delicate balance to be struck:
    • A forward-looking approach – the intricate play between fiscal and environmental legislation: The stick and/or the carrot.

Part 3: Carbon and Environmental Tax: Budget 202

23 March 2022

This webinar will deal with:

  • What are the major developments from the 2022 Budget Speech as it relates to environmental taxes?
    • Extension of phase 1 of carbon tax to the end of 2025.
    • Introduction of carbon budgets from 1 January 2023.
    • Carbon tax rate increase to R144 per tonne of carbon dioxide equivalent.
  • Carbon budgets – how will they be administered?
    • Climate Change Bill.
  • Extension of the energy efficiency savings tax incentive (Section 12L of the Income Tax Act). 
  • Detailed discussion on the carbon tax allowances:
    • Basic tax-free allowance.
    • Process emissions allowance.
    • Fugitive emissions allowance.
    • Trade exposure allowance.
    • Performance allowance.
    • Carbon budget allowance.
    • Carbon offsets allowance.

Part 4: Carbon Tax Proposed Amendments and Green Incentives

20 September 2022

This webinar will deal with:

Carbon Tax amendments in the draft Taxation Laws Amendment Bill:

  • Section 5: Carbon tax rate trajectory for 2023 to 2025, 2026, 2027 to 2029 and 2030.
  • Section 12L Income Tax Act: Extension of the first phase of carbon tax from 1 January 2023 to 31 December 2025 – the energy efficiency savings tax incentive extension.
  • Section 6(2)(c) and (d): Extension of first phase of carbon tax from 1 January 2023 to 31 December 2025 – electricity price neutrality commitment extension.
  • Section 6(2): Limitation of electricity price neutrality deductions to electricity generation from fossil fuels.
  • Section 6(4): Limiting carbon sequestration deduction to activities within the operational control of the taxpayer.
  • Key matters not addressed in the DTLAB.

Green Incentives (Income Tax Act):

  • Section 12L: Energy Efficiency Income Tax Inventive.
  • Section 12B: Renewable Energy Income Tax Incentive.
  • Section 12U: Additional deduction in respect of supporting infrastructure in respect of renewable energy.
  • Section 12I: Industrial Policy Project (IPP) Allowance.
  • Section 11D and 11A: R&D Allowance (Renewable Energy/Energy Efficiency).
  • Section 12C(1)(gA): Accelerated depreciation allowance for R&D (Renewable Energy / Energy Efficiency)
  • Section 13(1)(b): Depreciation allowance for R&D buildings (Renewable Energy / Energy Efficiency)
  • Section 37B: Deductions in respect of environmental expenditure

Part 5: Carbon Tax, Carbon Pricing and ESG: A Global Perspective

13 October 2022

This webinar will deal with:

  • South African carbon tax landscape and carbon pricing global trends:
    • An emissions trading system (ETS).
    • Carbon tax.
    • A crediting mechanism.
    • Results-based climate finance.
    • Internal carbon pricing.
    • Carbon border adjustment mechanisms.   
  • OECD – tax and the environment:
    • Taxing energy use: Using taxes for climate action.
    • Effective carbon rates: Pricing carbon emissions through taxes and emissions trading.
  • The rise of ESG and the focus of the “T” in ESG – the link between tax and ESG.
    • Tax and environment.
    • Tax and governance.
    • Tax and social.

 

  • TCFD.
  • South African green finance taxonomy

 

 


Who should attend?

Tax practitioners, financial directors, financial managers, professionals engaged in the areas of carbon tax reporting and compliance.


Presenter

Jason Daniel

Tax Manager I Tax and Legal Services department, PwC South Africa

Jason holds a BCom (Law), LLB, LLM (International Commercial Law) and LLM (Tax Law). He is an Admitted Attorney of the High Court of South Africa as well as an accredited and registered carbon footprint analyst at the Institute of Environmental Management and Assessment (IEMA). Jason is also a committee member within the South African Institute of Chartered Accountants (SAICA) carbon tax sub-committee.


CPD

This event and successful completion of the online assessment will secure 2 hours verifiable output Tax CPD points per session.


Event Investment

CPD subscribers: Free for all CPD subscribers.

25% discount on purchase of full series.

Regular price: R1 856.25

SAIT member: R1 481.25

Group price (five attendees maximum): R3 562.50


Payments and cancellations

  • All payments must be made by EFT or by credit card, at least 3 working days before commencement of an event.
  • Kindly note that should payment not been received 2 days after the event, legal action will be taken
  • Proof of payment will be requested at registration if payment at that point in time has not been reflected on the Tax Faculty's bank account.
  • Only written notice of cancellation will be recognised.
  • Cancellation conditions:
    • If the cancellation occurs more than 4 working days prior to the event no cancellation fee will be charged.
    • If the cancellation occurs less than 4 working days prior to the event a 100% cancellation fee will apply.
  • Delegates who book and fail to attend will be liable for the full event fee.
  • The Tax Faculty's liability in the case of an event being cancelled will be limited to a refund or credit of the event fee.
  • Please click here for the full terms and conditions.

 

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