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Renewable energy incentives
- 26 April 2023
- Accounting
- South African Accounting Academy
These proposals assist in partially addressing the country’s energy crisis, and also encourages private investment into expanding of electricity generation.
It effectively inserts sections 6 and 12BA into the Income Tax Act.
This initial batch of the 2023 draft Taxation Laws Amendment Bill (TLAB) covers these two specific tax amendments, and are urgent, due to the proposed early effective dates for implementation, and to enhance certainty for individuals and businesses that would like to immediately invest in renewable energy.
Comments deadline = 15 May 2023
Public comments may include proposals by body corporates on how the rooftop solar incentive could be applied to members of the body corporate if a body corporate were to install solar PV panels for members’ benefit.
Access and read the Government speech here: https://www.gov.za/speeches/publication-renewable-energy-incentives-2023-draft-taxation-laws-amendment-bill-public
Click here to download the Draft TLAB and Explanatory Memorandum:
- https://www.treasury.gov.za/public%20comments/TLAB%202023/Draft%20Bill%20-%20Initial%20batch%20of%202023%20draft%20TLAB%20-%2021%20April%202023.pdf
- https://www.treasury.gov.za/public%20comments/TLAB%202023/Draft%20Explanatory%20Memorandum%20on%20the%20initial%20Batch%20of%202023%20Draft%20TLAB-21%20April%202023.pdf
Relevance to Auditors, Independent Reviewers & Accountants:
- The Income Tax Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
- As an auditor, independent reviewer, an accountant or tax practitioner, you need to be aware of the proposed changes to tax legislation that is brought about by the annual budget speech.
- As an employer and taxpayer, you also need to comply with the Income Tax Act in your workplace and be aware of the Draft TLAB, so that you and your practice may benefit from these renewable energy incentives.
Relevance to Your clients:
- An entity (company or close corporation) has a duty to comply with the Income Tax Act, and directors have to fulfil their duties accordingly, otherwise they could be held liable.
- It is important to be aware of the proposed changes to tax legislation that is brought about by the annual budget speech, so that your clients may benefit from these renewable energy incentives.
To stay current with all the latest changes and updates subscribe to our Monthly Compliance and Legislative Update series for R 250.00 per month. This gives you access to a monthly 2-hour webinar and monthly newsletter:
https://accountingacademy.co.za/profession/monthly-legislation-update
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