Tax Policies on Certified Emission Reduction Transactions
Abstract: The purpose of Clean
Development Mechanism (CDM) is to reduce the emission of greenhouse gas through
carbon credit. The mechanism allows projects or business enterprises related to
the reduction of carbon emission in developing countries to receive the
Certified Emission Reduction (CER). The current research uses the qualitative
approach and analyzes policies on Value-Added Taxes (PPN) and the Income Tax
(PPh) to determine the ones appropriate for CER transactions in Indonesia. India’s
policies of PPN and PPh on CER transactions are used as a benchmark to analyze
tax policies on CER transactions in Indonesia. The current research shows that,
in regard to PPN-taxable objects, CER is the equivalent of a marketable
security or collateral. Article 4 Clause (2) Point d in UU PPN Indonesia states
that marketable securities are categorized as non-taxable goods; therefore, in
accordance with UU PPN, a CER transaction is exempt from PPN. PPh laws and
regulations state that the income from CER sales in Indonesia is subject to the
income tax. To support the policy on carbon emission reduction, the government
can issue a policy in which PPN is not levied on imported machines or
equipments used in technology transfer activities, and thus facilitate the
growth of CDM projects.
Keywords: certified emission
reduction (CER), clean development mechanism (CDM), income tax, value-ddded
taxes
Penulis: TITI M. PUTRANTI
Kode Jurnal: jpadministrasinegaragg110026
