Carbon tax
Open ↗16.—(1) A tax, called the carbon tax, is charged on the total amount of reckonable GHG emissions in any year (called in this Act an emissions year) of a business facility that is a taxable facility of any registered person in that year.[Act 37 of 2022 wef 01/01/2024]
(1A) For the purpose of subsection (1), the total amount of reckonable GHG emissions of the business facility is as set out in the emissions report or the part of the emissions report for the reporting period, or the emissions reports or the parts of the emissions reports for the reporting periods, for that year for the business facility, that is or are verified under section 12 and approved by the Agency.[Act 37 of 2022 wef 01/01/2024]
(2) Subsection (1) does not apply if the total amount of the reckonable GHG emissions in that emissions year does not attain the second emissions threshold.[Act 37 of 2022 wef 01/01/2024]
(3) The amount of the tax charged under subsection (1) is calculated based on the formula A × B, where —(a)
A is the carbon dioxide equivalence of the total amount of the reckonable GHG emissions mentioned in subsection (1), rounded up to the nearest metric tonne; and
(b)
B is the carbon tax rate specified in Part 1 of the Third Schedule.
(4) The tax charged under subsection (1) accrues as a liability of the registered person having operational control over the taxable facility at the end of the reporting period or (if there is more than one) the last reporting period for the emissions year, and must be paid by the registered person in accordance with this Part.[Act 37 of 2022 wef 01/01/2024]
Payment of tax and penalty
Open ↗17.—(1) The tax for an emissions year must be paid —(a)
against an assessment pursuant to section 21(1) or (2), by the later of —(i)
30 September of the year immediately following the emissions year; or[Act 37 of 2022 wef 01/01/2024]
(ii)
30 days after the date of service on the registered person of the notice of assessment; and
(b)
against any other assessment, within 30 days after the date of service on the registered person of the notice of assessment.[Act 37 of 2022 wef 01/01/2024]
(2) The payment under subsection (1) must be made —(a)
subject to subsection (3A), by the surrender of fixed‑price carbon credits; or[Act 37 of 2022 wef 01/01/2024]
(b)
if, at the time of payment, the FPCC registry account for the taxable facility in relation to which the tax is charged is suspended or closed, in the form and manner required by the Agency.[Act 37 of 2022 wef 01/01/2024]
(3) Subject to subsection (3A), the number of fixed‑price carbon credits that must be surrendered under subsection (2)(a) is the number assessed by the Agency to have a total carbon price equal to the amount of tax charged.[Act 37 of 2022 wef 01/01/2024]
(3A) Despite subsections (2)(a) and (3) and subject to section 33B, one eligible international carbon credit may be surrendered in place of one fixed-price carbon credit, in respect of such tax for such emissions year as may be prescribed.[Act 37 of 2022 wef 01/01/2024]
(3B) Where any tax is required to be paid pursuant to a revision of an assessment under section 23 —(a)
the number of fixed-price carbon credits (at the carbon price applicable to the year in which they are to be purchased for the payment) that must be surrendered under subsection (2)(a) is the number assessed by the Agency to have a total carbon price equal to the amount of the tax, rounded down to the nearest whole number of such fixed‑price carbon credits; and
(b)
subsection (3A) does not apply except in the circumstances and to the extent prescribed.[Act 37 of 2022 wef 01/01/2024]
(4) If a registered person fails to make full payment of the tax in accordance with subsection (2) within the time specified under subsection (1) —(a)
a financial penalty of 5% of the amount of tax assessed and remaining unpaid, is payable in addition to the tax that remains unpaid;
(b)
the Agency must serve a demand note on the registered person and if payment is not made within 30 days after the date of the service of the demand note, the Agency may proceed to enforce payment of the tax and penalty under this Act; and
(c)
despite paragraphs (a) and (b), if the amount of tax remaining unpaid is not paid within 60 days after the imposition of the financial penalty under paragraph (a), an additional financial penalty of 1% of the amount of tax remaining unpaid is payable for each completed month that the tax remains unpaid, but not exceeding triple the amount of tax remaining unpaid in total.
(5) The amount of tax remaining unpaid and any financial penalty must be paid to the Agency in the form and manner required by the Agency.
Relief or remission from tax or penalty
Open ↗18.—(1) The Agency may, if the Agency thinks that it is just and equitable to do so, and upon such conditions as the Agency may impose, give to any registered person any relief or remission from —(a)
the tax or any part of the tax to which the registered person has been assessed to be liable; or
(b)
any financial penalty or part of any financial penalty to which the registered person is liable under section 17(4).
(2) The Minister may, upon such conditions as the Minister may impose, give to any registered person any relief or remission from —(a)
the tax or any part of the tax to which the registered person has been assessed to be liable; or
(b)
any financial penalty or part of any financial penalty to which the registered person is liable under section 17(4).
Refund of tax, etc.
Open ↗19.—(1) Where —(a)
a registered person has surrendered fixed‑price carbon credits, or both fixed‑price carbon credits and eligible international carbon credits, for any tax charged in relation to a taxable facility of the registered person; and[Act 37 of 2022 wef 01/01/2024]
(b)
the tax charged is reduced as a result of —(i)
any relief or remission given to a registered person under section 18; or
(ii)
any revision under section 23 to an assessment of tax,
the registered person may apply to the Agency for a refund of the amount of tax so reduced.
(2) For the purpose of subsection (1), if —(a)
the registered person continues to hold an FPCC registry account for the taxable facility; and[Act 37 of 2022 wef 01/01/2024]
(b)
the revision was to correct an error that was not on the part of the Agency,
then, the Agency must effect the refund by crediting the FPCC registry account for the taxable facility with the number of fixed‑price carbon credits with a total carbon price equal to the amount of tax so reduced.
[Act 37 of 2022 wef 01/01/2024]
(2A) To avoid doubt, the fixed-price carbon credits refunded under subsection (2) must be at the carbon price applicable for the purchase of fixed‑price carbon credits in the year in which the refund is made.[Act 37 of 2022 wef 01/01/2024]
(2B) Where the amount of the refund results in there being a fraction of a fixed‑price carbon credit mentioned in subsection (2A), the resulting number of fixed‑price carbon credits is to be rounded down to the nearest whole number of such fixed‑price carbon credits.[Act 37 of 2022 wef 01/01/2024]
(2C) No claim may be brought against the Government or the Agency for any value represented by the fraction of a fixed‑price carbon credit mentioned in subsection (2B).[Act 37 of 2022 wef 01/01/2024]
(3) An application under subsection (1) must be made within 4 years after the date on which the relief or remission is given, or the revision is made, as the case may be.
(4) Where any refund has been erroneously made or any fixed‑price carbon credit erroneously credited pursuant to subsection (1) or (2), the registered person refunded or whose FPCC registry account was credited with the fixed‑price carbon credit must pay to the Agency an amount equal to the amount of the erroneous refund or the carbon price of the fixed‑price carbon credit erroneously credited, upon demand being made by the Agency within 4 years after the date of the erroneous refund or credit.[Act 37 of 2022 wef 01/01/2024]
(5) Nothing in this section operates to extend any time limit for an appeal or to validate any objection or appeal that is otherwise invalid, or to authorise the revision of any assessment or other matter that has become final and conclusive.
Recovery of tax and penalty, etc.
Open ↗20.—(1) Despite the provisions of any other written law —(a)
any tax remaining unpaid;
(b)
any financial penalty imposed under section 17(4);
(c)
any amount demanded under section 17(4) that is not paid within the time specified in the demand; and
(d)
any amount of refund erroneously made or any amount equal to the carbon price of any fixed‑price carbon credit erroneously credited, mentioned in section 19,
is recoverable as a debt due to the Government and the Agency may, in the name of the Agency, sue for such tax, financial penalty or amount.
[Act 37 of 2022 wef 01/01/2024]
(2) For the purposes of section 33(2) of the Limitation Act 1959, any financial penalty imposed under section 17(4) is treated as interest on tax.
(3) To avoid doubt, section 6(4) of the Limitation Act 1959 does not apply to any financial penalty imposed under section 17(4).
Interpretation of this Division
Open ↗20A.—(1) In this Division —“allowance”, in relation to a taxable facility that is eligible for an allowance for an emissions year, means the amount by which the total amount of reckonable GHG emissions of the taxable facility in the emissions year may be reduced for the purpose only of determining the amount of the tax chargeable for the emissions year, in accordance with an award of allowances given by the Minister under section 20E;
“public body” and “responsible Minister”, in relation to a public body, have the meanings given by section 2(1) of the Public Sector (Governance) Act 2018.[Act 37 of 2022 wef 01/01/2024]
(2) In this Division, a person is from the public sector if the person is a public officer or an employee of a public body.[Act 37 of 2022 wef 01/01/2024]
Application of this Division
Open ↗20B. This Division applies in relation to any emissions year in the period from and including 1 January 2024 up to and including such date as the Minister may prescribe under section 20F.[Act 37 of 2022 wef 01/01/2024]
Reduction of reckonable GHG emissions chargeable to tax
Open ↗20C. Despite section 16(3), where a taxable facility is eligible for any allowance for any emissions year, the amount of the tax chargeable under section 16(1) for that emissions year is calculated based on the formula (A – C) × B, where —(a)
A and B have the meanings given by section 16(3)(a) and (b), respectively;
(b)
C is the allowance for the taxable facility for the emissions year; and
(c)
(A – C) is rounded up to the nearest metric tonne.[Act 37 of 2022 wef 01/01/2024]
Taxable facilities eligible for allowances
Open ↗20D.—(1) A taxable facility of a registered person is eligible for allowances if —(a)
the registered person is in the business of making exports or making supplies to another person who is in the business of making exports, and the taxable facility is used in connection with that business of the registered person; and
(b)
the Minister determines that that business of the registered person is of sufficient economic or strategic importance to the growth, expansion, development or wellbeing of the Singapore economy, to justify an award of allowances for the taxable facility.[Act 37 of 2022 wef 01/01/2024]
(2) The Minister must notify the registered person of a taxable facility that is eligible for allowances of that fact, and grant the registered person an award of allowances for the taxable facility.[Act 37 of 2022 wef 01/01/2024]
Awards of allowances
Open ↗20E.—(1) The Minister must, in an award of allowances for any taxable facility, specify —(a)
the emissions years in respect of which the taxable facility is entitled to allowances; and
(b)
the methodology by which the amount of allowance for each such emissions year is to be calculated.[Act 37 of 2022 wef 01/01/2024]
(2) In devising the methodology for any emissions year, the Minister may —(a)
adopt or take into consideration any or any combination of the following sub-paragraphs (including any part thereof):(i)
the whole or any part (with or without modification) of any matter relevant to GHG emissions or intensity, or energy use or efficiency, including any internationally‑recognised benchmark;
(ii)
any other matter that the Minister considers appropriate for the purpose of incentivising the continued reduction in the GHG emissions of the taxable facility; and
(b)
provide for a maximum amount of allowance for any emissions year, determined —(i)
by prescribing that the tax chargeable for an emissions year (calculated based on the formula (A – C) × B in section 20C) must not, when divided by A for that emissions year, result in an amount that is less than the amount specified by the Minister in the award for this purpose; or
(ii)
in any other manner that the Minister considers appropriate to incentivise the continued reduction in GHG emissions of the taxable facility.[Act 37 of 2022 wef 01/01/2024]
(3) For the purposes of subsection (2), the Minister may devise different methodologies for —(a)
different taxable facilities;
(b)
different classes of taxable facilities;
(c)
different emissions years (including with respect to the same taxable facility); or
(d)
different circumstances.[Act 37 of 2022 wef 01/01/2024]
(4) The Minister may at any time, in respect of any emissions year for which a taxable facility is entitled to an allowance under an award of allowances, amend the award of allowances by —(a)
modifying the methodology specified for the emissions year; or
(b)
substituting some other methodology for the emissions year,
in any circumstances that the Minister thinks appropriate, including where the original methodology ceases to be internationally‑recognised, or ceases to be valid or applicable, or ceases to have or is reduced in its relevance, in relation to the registered person or the business for which the taxable facility is used.
[Act 37 of 2022 wef 01/01/2024]
(5) The modified or substituted methodology must not be applied in respect of any emissions year for which the Agency has made an assessment of tax under Division 2 of Part 5, but may be so applied if the assessment is being revised under section 23.[Act 37 of 2022 wef 01/01/2024]
(6) The Minister must, in respect of each emissions year mentioned in subsection (1)(a), determine the amount of the allowance for that emissions year in accordance with the methodology mentioned in subsection (1)(b) for that emissions year. [Act 37 of 2022 wef 01/01/2024]
Regulations
Open ↗20F. The Minister may make regulations for any matter that is necessary, required or permitted to be prescribed to give effect to this Division, and the regulations may make different provisions for —(a)
different persons or business facilities;
(b)
different classes of persons or business facilities;
(c)
different emissions years (including with respect to the same taxable facility); or
(d)
different circumstances.[Act 37 of 2022 wef 01/01/2024]
Assignment of function or power to public body
Open ↗20G.—(1) The Minister may assign any of his or her functions and powers under this Division to any public body.[Act 37 of 2022 wef 01/01/2024]
(2) Where the public body is not one for which the Minister is the responsible Minister, the Minister must consult the responsible Minister for the public body on the assignment.[Act 37 of 2022 wef 01/01/2024]
(3) An assignment under this section —(a)
must be made by order in the Gazette;
(b)
may be general or limited;
(c)
may be subject to conditions that are consistent with the nature of the assigned function or power;
(d)
may be to 2 or more public bodies at the same time; and
(e)
does not prevent the Minister from carrying out or exercising the assigned function or power.[Act 37 of 2022 wef 01/01/2024]
(4) Upon an assignment being made under this section —(a)
the public body, when carrying out the function or exercising the power assigned to it, is treated as carrying out a function or exercising a power conferred on the public body under the Act that establishes it; and
(b)
the public body must carry out the function or exercise the power assigned to it in accordance with any directions given by the Minister.[Act 37 of 2022 wef 01/01/2024]
(5) A member of the public body who is not from the public sector must not be involved in the carrying out of a function or the exercise of a power assigned to the public body.[Act 37 of 2022 wef 01/01/2024]
(6) The public body must not delegate a function or power assigned to it, to any of its members, or to any other person, who is not from the public sector.[Act 37 of 2022 wef 01/01/2024]
(7) Without affecting any obligation as to secrecy or other restriction against the disclosure of information imposed by any law or contract —(a)
a member of the public body who is from the public sector; or
(b)
a person who has been delegated a function or power assigned to the public body,
that receives or obtains any information for the purposes of this Division, must not disclose or provide access to such information to a member of the public body, or any other person, who is not from the public sector.
[Act 37 of 2022 wef 01/01/2024]
(8) Subsection (7) does not apply to the following information:(a)
information the disclosure of which has been approved by the Minister;
(b)
information relating to a person —(i)
for which consent for disclosure has been obtained from the person; or
(ii)
that is already in the possession of the public body;
(c)
information that is publicly available.[Act 37 of 2022 wef 01/01/2024]
(9) The public body may carry out a function or exercise a power assigned to it despite the absence of a quorum at any meeting of the public body because of subsection (5) or (7), and the absence of a quorum does not affect the validity of anything done by the public body at the meeting.[Act 37 of 2022 wef 01/01/2024]
(10) This section does not permit the assignment of —(a)
any power to make subsidiary legislation; and
(b)
the power of assignment in this section.[Act 37 of 2022 wef 01/01/2024]
Division 2 — Assessments of tax
Assessments by Agency
Open ↗21.—(1) Upon approving a verified emissions report for a reporting period, or the verified emissions reports for the reporting periods, for an emissions year for a taxable facility, the Agency must assess —(a)
the tax charged under section 16(1) for the emissions year; and[Act 37 of 2022 wef 01/01/2024]
(b)
the number of carbon credits that the registered person must surrender to pay the tax.[Act 37 of 2022 wef 01/01/2024]
(2) Where the Agency is of the opinion that a registered person is liable to pay the tax for an emissions year and —(a)
any verified emissions report for a reporting period for the emissions year has not been submitted for the Agency’s approval as required by section 11(1); or
(b)
any such verified emissions report submitted is incomplete or inaccurate such that, or for any other reason, the Agency is unable to approve the same before 15 August of the year immediately following the emissions year,
the Agency may, to the best of the Agency’s judgment, assess the matters in subsection (1).
[Act 37 of 2022 wef 01/01/2024]
(3) In making an assessment under subsection (2), the Agency may have regard to any verified emissions report (whether or not approved by the Agency) previously submitted to the Agency for the business facility to which the tax relates, and if there is no such verified emissions report, the Agency may have regard to —(a)
emissions reports submitted for the business facility as a reportable facility;
(b)
energy use reports submitted under the Energy Conservation Act 2012 for the business facility; or
(c)
any other document which may assist the Agency in determining or estimating the total amount of reckonable GHG emissions of the business facility as a taxable facility for the emissions year in question.[Act 37 of 2022 wef 01/01/2024]
(4) An assessment under subsection (2) does not affect any liability of any registered person under this Act in relation to the registered person’s failure to submit a verified emissions report or a registered person’s submission of a verified emissions report that is incomplete or inaccurate.[Act 37 of 2022 wef 01/01/2024]
(5) Upon making an assessment under subsection (1) or (2), the Agency must serve a notice of assessment on the registered person liable to pay the tax that sets out the matters in subsection (1).[Act 37 of 2022 wef 01/01/2024]
Advance assessments
Open ↗22.—(1) Despite section 21, where the Agency is notified that a registered person will cease, or is otherwise of the opinion that a registered person has ceased or is likely to cease, to have operational control over a taxable facility, the Agency may, to the best of the Agency’s judgment, assess the matters mentioned in section 21(1) for the taxable facility in relation to any emissions year for which the Agency has not issued an assessment under section 21(1) or (2) for the taxable facility.[Act 37 of 2022 wef 01/01/2024]
(2) In making an assessment under subsection (1), the Agency may have regard to any verified emissions report (whether or not approved by the Agency) previously submitted to the Agency for the taxable facility.
(3) Where, in relation to a business facility that is a taxable facility, no verified emissions report for the business facility as a taxable facility is available for the purpose of subsection (2), the Agency may have regard to —(a)
emissions reports submitted for the business facility as a reportable facility;
(b)
energy use reports submitted under the Energy Conservation Act 2012 for the business facility; or
(c)
any other document which may assist the Agency in determining or estimating the total amount of reckonable GHG emissions of the business facility as a taxable facility for the emissions year in question.[Act 37 of 2022 wef 01/01/2024]
Revision of assessments
Open ↗23.—(1) The Agency may revise any assessment (whether made under section 21 or 22 and whether revised previously under this section) if —(a)
the Agency is of the opinion that the assessment is no longer accurate, including —(i)
where the Agency approves a verified emissions report after an assessment under section 21(2); or
(ii)
where the Agency approves any change to an approved verified emissions report on which the assessment was based; or
(b)
the registered person on whom the notice of assessment has been served raises any objection to the assessment, and, upon consideration of such objection, the Agency agrees with the objection.
(1A) Despite subsection (1)(b), a registered person may not raise any objection to an assessment in respect of any amount of allowance (as defined in section 20A) included in the notice of assessment for the registered person.[Act 37 of 2022 wef 01/01/2024]
(2) A revision under subsection (1)(a) must be made within 4 years after the date of the service of the notice of assessment for the assessment sought to be revised.
(3) For the purpose of subsection (1)(b), the registered person must submit a written notice of objection to the Agency —(a)
within 30 days after the date of the service of the notice of assessment for the assessment sought to be revised; and
(b)
stating precisely the grounds of objections.
(4) If the Agency is satisfied that there is any good reason to do so, the Agency may extend the period mentioned in subsection (3)(a).
(5) For the purpose of considering any notice of objection, the Agency may —(a)
require the registered person that gave the notice —(i)
to provide such particulars as the Agency may consider necessary with respect to the GHG emissions of the taxable facility in question; and
(ii)
to produce all books or other documents in its custody relating to such GHG emissions; and
(b)
summon any person that the Agency thinks is able to give evidence respecting the assessment to attend before the Agency or any authorised officer, who may examine the person on oath or otherwise.
(6) If the Agency refuses to revise an assessment pursuant to subsection (1)(b), the Agency must serve on the registered person a notice of refusal to revise the assessment.
(7) Upon revising an assessment under subsection (1), the Agency must serve on the registered person a notice of assessment for the assessment as revised, for the matters mentioned in section 21(1).
Waiver of small assessments
Open ↗24. Where it appears to the Agency that the amount of any tax or additional tax for any emissions year in relation to a taxable facility does not exceed an amount that is 5 times the carbon price applicable for the purchase of fixed-price carbon credits in the year immediately after the emissions year, or any higher amount as may be prescribed in substitution, the Agency may waive the assessment of such tax.[Act 37 of 2022 wef 01/01/2024]
Mistakes in assessment
Open ↗25. If the provisions of this Act are in substance and effect complied with, no assessment, charge or demand for any tax is to be quashed or affected by reason of any mistake in —(a)
the name of any registered person liable to pay the tax; or
(b)
the amount of tax assessed as charged.
Division 3 — Fixed-price carbon credits
Fixed-price carbon credits
Open ↗26.—(1) The carbon price of a fixed‑price carbon credit is specified in Part 2 of the Third Schedule.[Act 37 of 2022 wef 01/01/2024]
(2) Except as permitted under this Act, a fixed‑price carbon credit cannot be sold, transferred, assigned or otherwise disposed of or dealt with.[Act 37 of 2022 wef 01/01/2024]
Crediting of fixed-price carbon credits
Open ↗27.—(1) Subject to section 32, the Agency must credit into the FPCC registry account for a taxable facility of a registered person, any number of fixed‑price carbon credits that the registered person applies and pays for, in relation to that FPCC registry account.[Act 37 of 2022 wef 01/01/2024]
(2) A registered person may apply to the Agency to transfer any fixed‑price carbon credit from an FPCC registry account for any of its taxable facilities to the FPCC registry account for any of its other taxable facilities.[Act 37 of 2022 wef 01/01/2024]
Surrender of fixed-price carbon credits
Open ↗28.—(1) Subject to section 32, a registered person may surrender one or more fixed‑price carbon credits in the FPCC registry account for a taxable facility of the registered person, in payment of the tax payable by the registered person in relation to the taxable facility.[Act 37 of 2022 wef 01/01/2024]
(2) The Agency must, in respect of every fixed‑price carbon credit surrendered under subsection (1), remove the fixed‑price carbon credit from the FPCC registry account, and the registered person is treated as having paid the tax in relation to the taxable facility, to the extent of the total carbon price of the fixed‑price carbon credits so surrendered and removed.[Act 37 of 2022 wef 01/01/2024]
Cancellation of fixed-price carbon credits
Open ↗29.—(1) Where —(a)
a registered person has failed to pay any tax in accordance with section 17 in relation to any taxable facility of the registered person; and
(b)
the registered person has any fixed‑price carbon credit in the FPCC registry account for that taxable facility,
the Agency may cancel the fixed‑price carbon credit and remove it from the FPCC registry account, and the registered person is treated as having paid the tax in relation to the taxable facility to the extent of the carbon price of the fixed‑price carbon credit so cancelled and removed.
[Act 37 of 2022 wef 01/01/2024]
(2) Where any fixed‑price carbon credit in an FPCC registry account for a taxable facility of a registered person has been obtained by the registered person through fraud or any other unlawful means, the Agency may cancel the fixed‑price carbon credit and remove it from the FPCC registry account.[Act 37 of 2022 wef 01/01/2024]
(3) A registered person that has any fixed‑price carbon credit cancelled and removed under subsection (2) —(a)
is not treated as having paid any tax in relation to the taxable facility to which the FPCC registry account relates, to the extent of the carbon price of the fixed‑price carbon credit; and[Act 37 of 2022 wef 01/01/2024]
(b)
is not entitled to any refund on the fixed‑price carbon credit.[Act 37 of 2022 wef 01/01/2024]
(4) The Agency must not exercise the power under subsection (1) or (2) without prior notice to the registered person.[Act 37 of 2022 wef 01/01/2024]
Refunds on fixed-price carbon credits
Open ↗30. A registered person is not entitled to any refund on any fixed-price carbon credit except to the extent permitted by section 33.[Act 37 of 2022 wef 01/01/2024]
Division 4 — Fixed-Price Carbon Credits Registry
Opening of fixed-price carbon credit registry account
Open ↗31. For the purpose of Division 3, the Agency must open, for each taxable facility of a registered person, a registry account in the Fixed‑Price Carbon Credits Registry and assign a unique identifier to the registry account.[Act 37 of 2022 wef 01/01/2024]
Conversion of fixed-price carbon credits upon change in carbon price
Open ↗31A.—(1) Where in any year (year X) —(a)
a registered person has in its FPCC registry account any fixed-price carbon credits purchased at the carbon price for year X-1; and
(b)
the carbon price for year X differs from the carbon price for the year X-1,
the Agency must convert the fixed-price carbon credits purchased at the carbon price for year X-1 into such number of fixed‑price carbon credits as if they had been purchased in year X, by applying the formula
where —
(c)
R is the number of fixed-price carbon credits in the account that were purchased at the carbon price for year X-1;
(d)
S is the carbon price for the purchase of fixed‑price carbon credits in year X-1; and
(e)
T is the carbon price for the purchase of fixed‑price carbon credits in year X.
(2) Where the adjustment under subsection (1) results in there being a fraction of a fixed-price carbon credit, the resulting number of fixed‑price carbon credits is to be rounded down to the nearest whole number of such fixed‑price carbon credits.
(3) No claim may be brought against the Government or the Agency for any value represented by the fraction of a fixed‑price carbon credit mentioned in subsection (2).[Act 37 of 2022 wef 01/01/2024]
Suspension of fixed-price carbon credit registry account
Open ↗32.—(1) The Agency may suspend an FPCC registry account for a taxable facility of a registered person for a period not exceeding one year, if the Agency reasonably believes that —(a)
any information given in relation to the registration of the taxable facility was false or misleading in any material particular;
(b)
there has been unauthorised access to the account;
(c)
the account is used or intended to be used for purposes of a criminal offence; or
(d)
any fixed‑price carbon credit in the account was obtained through fraud or any other unlawful means.[Act 37 of 2022 wef 01/01/2024]
(2) For so long as an FPCC registry account is suspended —(a)
no fixed‑price carbon credits may be purchased and credited into the account;[Act 37 of 2022 wef 01/01/2024]
(b)
no fixed‑price carbon credits in the account may be transferred to another FPCC registry account under section 27(2) or surrendered under section 28; and[Act 37 of 2022 wef 01/01/2024]
(c)
section 17(2)(b) applies to any tax required to be paid during the period of suspension.[Act 37 of 2022 wef 01/01/2024]
(3) If the Agency is satisfied that there is good reason to do so, the Agency may —(a)
extend the period of the suspension for any further period or periods, each not exceeding one year; or
(b)
lift the suspension before the period of suspension expires.[Act 37 of 2022 wef 01/01/2024]
Closing of fixed-price carbon credit registry account
Open ↗33.—(1) The Agency may close an FPCC registry account for a taxable facility of a registered person in any of the following circumstances:(a)
upon the application of the registered person, if the taxable facility is deregistered as such;
(b)
if the Agency is satisfied that the account has been, is being or is intended to be used for the commission of any criminal offence;
(c)
if the account has been inactive for 5 years from the last transaction carried out on the account;
(d)
if the person for whom the account was opened has ceased to be registered as a registered person;
(e)
in any other circumstances as may be prescribed.[Act 37 of 2022 wef 01/01/2024]
(2) Before closing the FPCC registry account, the Agency must give the registered person written notice of the Agency’s intention to do so if —(a)
unless otherwise prescribed, the proposed closure is pursuant to subsection (1)(c) or (d); or
(b)
the proposed closure is pursuant to circumstances prescribed under subsection (1)(e), and this subsection is prescribed as applying with respect to those circumstances.[Act 37 of 2022 wef 01/01/2024]
(3) The written notice under subsection (2) must state —(a)
the consequences of closing the FPCC registry account mentioned in subsection (6); and[Act 37 of 2022 wef 01/01/2024]
(b)
the date by which any written objection to the proposed closure must be given to the Agency, which must be a date at least 30 days after the date of the service of the notice.
(4) The Agency must not close the FPCC registry account if the Agency receives a written objection from the registered person to the proposed closure by the date mentioned in subsection (3)(b), unless the Agency is satisfied that the objection is frivolous or vexatious or has been withdrawn.[Act 37 of 2022 wef 01/01/2024]
(5) The Agency may close the FPCC registry account if the Agency does not receive a written objection from the registered person by the date mentioned in subsection (3)(b).[Act 37 of 2022 wef 01/01/2024]
(6) Upon closing the FPCC registry account of the registered person under this section, the Agency must —(a)
cancel any fixed‑price carbon credit remaining in the FPCC registry account and remove it from the FPCC registry account; and[Act 37 of 2022 wef 01/01/2024]
(b)
refund the registered person an amount equal to the carbon price of the fixed‑price carbon credit cancelled and removed.[Act 37 of 2022 wef 01/01/2024]
(7) A registered person is not entitled to a refund under subsection (6) if the cancellation and removal resulted from the closure of the FPCC registry account under subsection (1)(b).[Act 37 of 2022 wef 01/01/2024]
Division 5 — International carbon credits
Eligible international carbon credit
Open ↗33A. An eligible international carbon credit is an international carbon credit that —(a)
meets the prescribed criteria; and
(b)
is accepted as an eligible international carbon credit by the Agency in accordance with any direction of the Minister.[Act 37 of 2022 wef 01/01/2024]
Surrender of eligible international carbon credits
Open ↗33B.—(1) For the purpose of section 17(3A), the total number of eligible international carbon credits surrendered must not exceed the prescribed limit.
(2) Despite subsection (1), the Minister may permit eligible international carbon credits to be surrendered in excess of the prescribed limit in any particular case or class of cases.
(3) Where an eligible international carbon credit is surrendered in place of a fixed‑price carbon credit for the purpose of paying any tax in relation to a taxable facility, the registered person of the taxable facility is treated as having paid the tax to the extent of the carbon price of the fixed‑price carbon credit that the eligible international carbon credit has been surrendered in place of.[Act 37 of 2022 wef 01/01/2024]
No refunds, etc., on excess eligible international carbon credit surrendered
Open ↗33C. Where eligible international carbon credits are surrendered in excess of the prescribed limit under section 33B in connection with the tax chargeable on the reckonable GHG emissions of a taxable facility for any emissions year —(a)
the number of eligible international carbon credits surrendered in excess of the prescribed limit are not treated as surrendered for the purpose of paying the tax for that emissions year, and may not be treated as having been surrendered for the purpose of paying any tax for any prior or subsequent emissions year; and
(b)
no claim may be brought against the Government or the Agency for any value represented by the number of eligible international carbon credits surrendered in excess of the prescribed limit. [Act 37 of 2022 wef 01/01/2024]
Division 6 — International Carbon Credits Registry
ICC Registry and ICC registry accounts
Open ↗33D. The Agency may establish, maintain and manage an International Carbon Credits Registry, and open and close ICC registry accounts for registered persons in such registry for purposes connected with the surrender of eligible international carbon credits in place of fixed‑price carbon credits in connection with the payment of any tax under this Act.[Act 37 of 2022 wef 01/01/2024]
Source: Singapore Statutes Online (Attorney-General's Chambers), © Government of Singapore.
