The Minister exempts a locally incorporated resident company from payment of income tax on income received from the sale of certified emission reduction, i.e. gross income from the sale less expenditure, not being capital expenditure, incurred by the company for the purposes of obtaining certified emission reduction. The expenditure shall be deemed to be incurred in the basis period for a year of assessment in which the income from the sale of certified emission reduction is received. The company shall maintain a separate record for the income so exempted.
“certified emission reduction” means a Kyoto Protocol unit equal to one metric tonne of carbon dioxide equivalent, calculated in accordance with Kyoto rules and is issued for gas emission reductions from an activity of clean development mechanism project (i.e. a project of clean development mechanism approved by the Ministry of Natural Resources and Environment).