Tax and Incentives

Tax is integral to the sustainability and climate change debate. Whether a business is grappling with renewables investment or new business issues, such as carbon trading schemes and changing business models, the tax implications of all these need to be considered. Add into the mix the implications of changing policy, such as the rapid increase in the prevalence of new carbon taxes and other environmental regulations around the world, and the importance of understanding and analysing the impact of taxes and regulation in this area becomes clear.

PwC’s S&CC tax network has extensive experience of understanding how the tax and regulatory agenda applies to client situations around the world. This is formed in part by our ground-breaking research project, Appetite for Change – Global business perspectives on tax and regulation for a low-carbon economy, for which we interviewed nearly 700 companies in 15 countries. Add to this the broad of range of projects we have worked on with clients, and our contacts with governments and international institutions, and PwC ranks as one of the leading advisers in this field.
 

Carbon and tax

Carbon is an increasingly important asset for a number of groups and, as with any other valuable asset, there are tax implications connected with its acquisition, holding, disposal and utilisation. In the context of an overall tax strategy, the issues that need to be considered include its deductibility for tax purposes, its indirect tax treatment and how to manage the tax implications of cross-border movements of carbon.

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Environmental taxes

The Malaysian Government has given greater focus to green development in recent years, recognising the social and environmental costs involved if green technology are not applied. A series of tax incentives has been introduced to encourage a low-carbon economy, and we expect more ‘green’ tax incentives to be implemented in the future.

The opportunity exists for environmental taxes to play a significant role in shaping both business strategies and operational decisions aimed at encouraging sustainable business activities. Failure to understand these taxes and their impact on business could lead to mismanagement of environmental costs and realisation of financial, operational and reputational risks.

Appetite for change report

 

Green property

Tax is a key consideration for any green property project. The Malaysian government has introduced various tax incentives to encourage the development of certified Green Building Index (GBI) properties and PwC has substantial experience in helping clients maximise the financial benefits of building green.

Case study

Tax incentives – Malaysian Telco

PwC’s Advisory and Tax team has advised a leading Malaysian Telco operator in their application to government agencies for tax incentives for the energy efficiency initiatives implemented within the new development of the client's green data center.

 

Tax incentive evaluation & application – Malaysian Telco

We were engaged to undertake an analysis to evaluate the preferred tax incentive (GBI incentive vs. Energy Efficient incentive) as well as assist the client in the incentive application process. The advice provided helped ensure that the client was maximising the tax benefits of building green.

Global Environmental Tax and Regulation Monitor

PwC’s Global Environmental Tax and Regulation Monitor allows businesses to keep on top of environmental tax and regulatory developments around the world. Published monthly, the newsletter combines policy, tax and legislative updates with expert analysis to help clients interpret and prepare for the commercial impact of environmental tax developments.