Based on public comments received on the Draft Amendments to the Carbon Tax Offset Regulations released for public comment in March 2021. National Treasury finalised the Amendments on 8th July 2021. The original Carbon Tax Offset Allowance Regulations were published in November 2019. As per the Carbon Tax Act, the taxpayer may reduce their tax payable by utilising carbon offsets as prescribed by the Minister. The taxpayer can receive an allowance of up to 10% of the total tax burden.

The most notable amendments are:

Amendment of regulation 1 of the Regulations (d): CDM/VCS/GS credits from national registries, including EU registries, are now eligible to be converted to CTOs under the SA Carbon Tax scheme provided they meet the other eligibility criteria.
Amendment of regulation 2 of the Regulations: Approved carbon offset projects in existence prior to 01 June 2019 can now be utilised on or before 28 July 2023 to align with the first phase of the carbon tax ending on 31 December 2022.
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Carbon Tax Offset Regulations Jul2021