Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 87
Sasol companies are involved in tax litigation and tax disputes with various tax authorities in the normal course of business.
A detailed assessment is performed regularly on each matter and a provision is recognised where appropriate. Although the
outcome of these claims and disputes cannot be predicted with certainty, Sasol believes that open engagement and transparency
will enable appropriate resolution thereof.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which the
deferred tax asset can be utilised. This includes the significant tax losses incurred at our US operations where we anticipate
sufficient profits to be generated in future to utilise the deferred tax asset against. These losses do not expire. The provision of
deferred tax assets and liabilities reflects the tax consequences that would follow from the expected recovery or settlement of
the carrying amount of its assets and liabilities.
SASOL LIMITED GROUP
CONSOLIDATED FINANCIAL STATEMENTS
Areas of judgement:
Deferred tax liabilities are not recognised for the income tax effect that may arise on the remittance of unremitted earnings by
foreign subsidiaries, joint operations and incorporated joint ventures. It is management's intention that, where there is no double
taxation relief, these earnings will be permanently re-invested in the group.
for the year ended 30 June
Unremitted earnings at end of year that would be subject to dividend withholding tax
Europe
Rest of Africa
Other
Tax effect if remitted
Europe
Rest of Africa
Other
2021
Rm
2020
Rm
26 662
27 750
20 051
1 933
4 678
19 943
2 807
5 000
455
380
277
155
23
133
225
22
NOTES TO THE FINANCIAL STATEMENTS
Unremitted earnings at end of year that would be subject to foreign dividend withholding tax and after tax
effect if remitted
Dividend withholding tax
Dividend withholding tax is payable at a rate of 20% on dividends distributed to shareholders. Dividends paid to companies and
certain other institutions and certain individuals are not subject to this withholding tax. This tax is not attributable to the company
paying the dividend but is collected by the company and paid to the tax authorities on behalf of the shareholder.
for the year ended 30 June
Undistributed earnings at end of year that would be subjected to dividend withholding tax withheld
by the company on behalf of Sasol Limited shareholders
Maximum withholding tax payable by shareholders if distributed to individuals
2021
Rm
2020
Rm
99 061
19 812
90 508
18 102
Accounting policies:
The income tax charge is determined based on net income before tax for the year and includes current tax, deferred tax and
dividend withholding tax.
SASOL LIMITED COMPANY
On receipt of a dividend, the company includes the dividend withholding tax in its computation of the income tax expense.
The current tax charge is the tax payable on the taxable income for the financial year applying enacted or substantively enacted
tax rates and includes any adjustments to tax payable in respect of prior years.
Deferred tax is provided for using the liability method, on all temporary differences between the carrying amount of assets and
liabilities for accounting purposes and the amounts used for tax purposes and on any tax losses using enacted or substantively
enacted tax rates at the reporting date that are expected to apply when the asset is realised or liability settled.
OTHER
Deferred tax assets and liabilities are offset when the related income taxes are levied by the same taxation authority, there is a
legally enforceable right to offset and there is an intention to settle the balances on a net basis.
85
Sasol Annual Financial Statements 2021