New tax rules have been proposed which would provide tax incentives for carbon trading and clarify current tax laws.
The proposals, which are contained in draft legislation not yet filed with the Ukrainian Parliament, include:
- defining carbon units (ERUs, AAUs) for tax law purposes
- treating carbon units as goods (stock) for tax purposes
- exempting from taxation all profits from carbon trading and funds or property obtained by Ukrainian taxpayers from or for the purposes of emission reduction projects
- exempting all qualifying imports of equipment from taxes and duties until 31 December 2012
- applying 0% VAT to qualifying exports of carbon units
This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq
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The original publication date for this article was 20/05/2009.