The Ministry of Finance and the State Administration recently jointly issued a notice that clarified the relevant enterprise income tax policies for the China Clean Development Mechanism (CDM) Fund and CDM project implementation enterprises.
The notice stipulates that the four categories of income obtained by the China CDM Fund will be exempt from enterprise income tax. Specifically, these include: the portion of CDM project greenhouse gas emission reduction transfer income remitted to the state; international financial organization grant income; deposit interest income and interest income from purchasing government bonds of the fund; donation income from domestic and overseas institutions, organizations, and individuals.
Regarding the enterprise income tax policy for CDM project implementation enterprises, the notice points out that CDM project implementation enterprises, in accordance with the provisions of the "Management Measures for the Operation of Clean Development Mechanism Projects," should remit...