Page 98 - Research on Financial Development Mechanism and Path of Forestry Carbon Sequestration in Developing Countries under Double Carbon Targets

Research on Financial Development Mechanism and Path of Forestry Carbon
Sequestration in Developing Countries under Double Carbon Targets

kind of public welfare users to affirm and encourage enterprises to fulfill their social
responsibilities.
Enterprise income tax. At present, the accounting and tax laws have not made clear
the accounting method of forestry carbon sequestration projects. It is necessary to make
clear the capitalization and expense treatment method of forestry carbon sequestration
in terms of tax revenue. It is suggested that a forestry carbon sequestration project be
used as the calculation cycle to collect costs and expenses and simplify the calculation.
At the same time, it is suggested that the accounting and tax laws can be handled con-
sistently. The first is the treatment of expenses. In the period of a project, the expenses
incurred in the previous period are not directly deducted before tax in the current pe-
riod, and are capitalised and deducted before tax after being sold. Second, subsequent
measurement. As a commodity, forestry carbon sinks have no physical form and their
ultimate purpose is to sell. Therefore, no amortisation or impairment provision is re-
quired for such special intangible assets. Third, in order to maximize the economic
and ecological benefits of forestry carbon sinks, the preferential treatment of enterprise
income tax can be appropriately increased. In addition to the preferential treatment of
income tax under the Clean Development Mechanism, it is suggested that the income
from the transfer of self-produced carbon sinks by enterprises directly producing forest-
ry carbon sinks should be exempted from enterprise income tax.
Other taxes. Environmental protection tax, resource tax and consumption tax
should work together. The resource tax can play a regulatory role in the forest tree
mining process, such as imposing a resource tax on acts such as deforestation; Environ-
mental protection tax focuses on the daily protection of trees, such as imposing envi-
ronmental protection tax on the destruction of trees caused by enterprises in the produc-
tion process; Consumption tax can play the role of tax regulation in the consumption of
forest products and guide social consumption. It is worth noting that while establishing
a interrelated and complementary tax mechanism, full consideration should be given to
social affordability and corporate burden to maximize the effectiveness of the policy.
In addition, we should establish a standard of collection and management to im-
prove the level of collection and management. One is to improve the information
exchange mechanism between tax authorities, forestry authorities and third-party in-
stitutions. It needs to be made clear whether the relevant certificates are true and valid,
whether there are situations that may be invalid or invalid, and how to ensure data
exchange. The second is to establish a team of skilled and operational professionals as
soon as possible. As a new thing, forestry carbon sequestration has a short development

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