Tax treatment of CDRCs

You should obtain your own professional advice about the tax treatment of BidCarbon Removal Units (BRUs) having regard to your own situation. Generally, the following applies to BRUs:

● the proceeds of selling an Carbon Data Rights Certificates (CDRCs) are assessable income on revenue account in the income year the BRU is sold

● sellers of CDRCs are deemed to have received market value for an BRUs in certain circumstances (for example, transactions between related entities).

● Detailed information regarding the tax treatment of BRUs and CDRCs is available on Your Country's Taxation Office website.

● You rely on this page at your own risk. We do not accept responsibility for any consequences that may arise from doing so.

Do I need to disclose information about my BRU purchases in the mainland of China?

In November 2023, the BidCarbon Unit and Certificate Registry contract was awarded to BidCarbon Big Data Chengdu Limited, an entity registered in the mainland of China. Should you sell or trade all BidCarbon Removal Units recorded in your Carbon Data Rights Certificate, we will submit the relevant tax information in accordance with the requirements of State Taxation Administration of the People's Republic of China under the Regulations on Tax-Related Information Submission by Internet Platform Enterprises.

What is the value-added tax rate for data assets in the mainland of China?

Where invoiced under “Sale of Intangible Assets — Data Assets”, general taxpayers must calculate and pay value-added tax at a rate of 6%.