Sasol Form 20-F for the year ended 30 June 2021 - Book - Page 96
where the source of the transaction is deemed to be
in SA, the recipient is not entitled to the full benefits
under the Treaty or, in the case of an individual who
performs independent person services, who has a fixed
base situated in SA.
However, residents of the CMA may under no
circumstances have dividends paid outside the CMA
without specific approval from the FSD.
Transfer of shares and ADSs. Effective 6
May 2019, J.P Morgan became the depositary for
Sasol’s ADSs. Sasol’s ADSs, each representing one
Sasol ordinary share, are traded on the NYSE under the
symbol “SSL”. Under South African exchange control
regulations, our shares and ADSs are freely transferable
outside South Africa among persons who are not
residents of the CMA. Additionally, where shares are
sold on the JSE on behalf of our shareholders who are
not residents of the CMA, the proceeds of such sales
will be freely exchangeable into foreign currency and
remittable to them. The FSD may also require a review
to establish that the shares have been sold at market
value and at arm’s length. While share certificates held
by non-resident shareholders will be endorsed with the
words “non-resident”, such endorsement will, however,
not be applicable to ADSs held by non-resident
shareholders.
The statements of law set forth below are
subject to any changes (which may be applied
retroactively) in SA law or in the interpretation thereof
by the SA tax authorities, or in the Treaty, occurring
after the date hereof. Holders are strongly urged to
consult their own tax advisors as to the consequences
under SA, US federal, state and local, and other
applicable laws, of the ownership and disposition of
shares or ADSs.
Carbon tax
A carbon tax was introduced in South Africa
with effect from 1 June 2019. The motivation for the
design and implementation of the carbon tax is to
ensure that emitters of GHGs change their behaviour
and start the process of reducing emissions to enable
the transition to a low-carbon economy. This objective
is fully supported by Sasol and can be achieved through
the alignment of the carbon tax and carbon budgets
supported by a well-considered integrated mitigation
policy which:
10.E Taxation
South African taxation
Corporate Income Tax
The following discussion summarises the
South African (SA) tax consequences of the ownership
and disposition of shares or ADSs by a US holder (as
defined below). This summary is based upon
current SA tax law and the convention that has been
concluded between the governments of the US and SA
for the avoidance of double taxation and the prevention
of fiscal evasion with respect to taxes on income and
capital gains, signed on 17 February 1997 (the Treaty).
In addition, this summary is based in part upon
representations of the depositary (J.P. Morgan, as
depositary for our ADSs), and assumes that each
obligation provided for in, or otherwise contemplated
by the Deposit Agreement and any related agreement,
will be performed in accordance with its respective
terms.
takes into account South Africa’s national
circumstances; and
enables companies to reduce emissions,
while ensuring that economic impacts and
job losses are minimised.
The tax is currently levied at a marginal rate of
R134 per ton CO2e of GHGs (process emissions,
combustion emissions and fugitive emissions) emitted
by a company. This rate is reduced by way of a number
of allowances resulting in a lower effective tax.
However, there are increased administration and
compliance costs for the carbon taxpayer over and
above the carbon tax liability.
SARS has extended the section 12L energy
efficiency allowances that taxpayers can qualify for
until 31 December 2022 to incentivise taxpayers to
transition into a low-carbon economy. Being a
responsible corporate citizen, Sasol has embarked on
various initiatives to reduce our carbon footprint over a
number of years. This has culminated in the claiming of
section 12L benefits totalling in excess of R15 billion
since the introduction in 2014 up to the 2020 tax year.
The summary of the SA tax considerations
does not address the tax consequences to a US holder
that is resident in SA for SA tax purposes or whose
holding of shares or ADSs is effectively connected with
a permanent establishment in SA through which such
US holder carries on business activities. It equally does
not address the scenario where the US holder is not the
beneficial recipient of the dividends or returns or,
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