Carbon Tax Act, 2019 (Act No. 15 of 2019)RegulationsRegulations on the Allowance in respect of trade exposure in respect of carbon tax liability under section 10 of the Carbon Tax Act4. Alternative method for calculating trade exposure allowance |
| (1) | Subject to subregulation (2), if a taxpayer is of the opinion that the trade exposure allowance determined in terms of regulation 2 does not accurately reflect the extent of the trade exposure of that taxpayer, that taxpayer may determine the percentage of the trade exposure allowance in accordance with subregulation (2) and (3). |
| (2) | A taxpayer must determine the trade exposure allowance of that taxpayer in accordance with the formula: |
X = (E + I) x Y
S
in which formula—
| (a) | "X" represents the percentage to be determined, |
| (b) | "E" represents an amount equal to the monetary value, expressed in Rand, of products that were exported, after the creation, extraction, production, assembly, repair or improvement, minor assembly or adjustment, packaging, repackaging and labelling of those products, by the taxpayer during the tax period, verified by an independent auditor; |
| (c) | "I" represents an amount equal to the monetary value, expressed in Rand, of products, after the creation, extraction, production, assembly, repair or improvement, minor assembly or adjustment, packaging, repackaging and labelling of those products, that were imported by the taxpayer during the tax period, verified by an independent auditor; |
| (d) | "S" represents an amount equal to the total sales, expressed in Rand, of the taxpayer during the tax period, verified by an independent auditor; and |
| (e) | "Y" represents the number 100. |
| (3) | A taxpayer must, if the percentage determined in terms of subregulation (2) is— |
| (a) | less than 10 per cent, receive no allowance; |
| (b) | equal to or greater than 10 per cent, but less than 30 per cent, receive an allowance equal to the percentage determined in terms of subregulation (2) multiplied by the fraction 0.33; or |
| (c) | equal to or greater than 30 per cent, receive an allowance of 10 per cent. |