Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 84
1
2
3
4
SASOL LIMITED GROUP
Taxation continued
13
Taxation continued
2021
%
2020
Restated
%
2019
Restated
%
28,0
28,0
28,0
–
11,4
2,3
0,5
–
–
–
–
–
(1,0)
(0,3)
(3,6)
(0,1)
(2,0)
–
(0,5)
0,4
10,9
3,3
15,3
–
9,9
2,3
2,3
42,2
20,5
72,4
(10,0)
(2,1)
–
(20,9)
(0,4)
(1,9)
(2,2)
(1,8)
(1,2)
0,7
–
–
–
–
–
0,9
–
0,3
(2,0)
(3,8)
(9,5)
(0,3)
(20,0)
(1,1)
–
–
(0,5)
22,4
35,2
Reconciliation of effective tax rate
The table below shows the difference between the South African enacted tax rate
(28%) compared to the effective tax rate in the income statement. Total income tax
expense differs from the amount computed by applying the South African normal
tax rate to profit before tax. The reasons for these differences are:
South African normal tax rate
Increase/(decrease) in rate of tax due to:
disallowed preference share dividends
disallowed expenditure¹
disallowed share-based payment expenses²
different tax rates³
share of profits of equity accounted investments
tax losses not recognised⁴
prior year adjustments
other adjustments
(Decrease)/increase in rate of tax due to:
exempt income⁵
share of profits of equity accounted investments
effect of tax litigation matters⁶
utilisation of tax losses⁷
investment incentive allowances
translation differences
prior year adjustments
capital gains and losses⁸
other adjustments
Effective tax rate
1,7
1 Includes non-deductible expenses incurred not deemed to be in the production of taxable income mainly relating to non-productive interest in
our treasury function and project costs.
2 This relates to the share based payment expense on the Sasol Khanyisa transaction.
3 2019 mainly relates to the impact of lower tax rate in the US on the increases in tax losses incurred during the year.
4 Tax losses not recognised in 2019 mainly relate to the R1,9 billion (2018 – R2,8 billion) impairment of the Canadian shale gas asset for which no
deferred tax asset was raised.
5 Mainly relates to the Foreign Currency Translation Reserve (FCTR) reclassified on the disposal of business.
6 2019 includes reversal of tax and interest pertaining to Sasol Oil.
7 Tax losses utilised in the current year which are allowed to be set off against 2021 foreign exchange gains. Refer note 6.
8 Relates mainly to the disposal of the Air Separation Units.
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Sasol Annual Financial Statements 2021