Tax uncertainty in energy sector offers mixed outlook, says Eurofast Taxand

The Global Energy Tax Survey prepared by the international tax organisation Taxand explores how current tax conditions are helping or hindering the commercial development of the energy sector across four key areas: carbon trading, renewable energy, emerging markets and decommissioning.
The survey, conducted in cooperation with Cyprus-based Eurofast Taxand, with offices in the Balkans, Russia and the Middle East, found that while carbon caps and credit trading have been used by many governments as an attempt to tackle the issue of climate change, there is extensive variation between jurisdictions on the treatment of VAT relief on the trading of carbon permits.
In all, 81% of countries surveyed said their government did provide tax incentives for renewable energy with financing and grants being the most commonly used methods to promote investment.
Emerging markets are now a critical destination for energy multinationals. However, emerging markets present their own tax issues, the Taxand survey concluded.
Uncertainties surrounding decommissioning of established oil and gas installations in the mature economic markets of Europe were highlighted as a particular issue facing multinationals.
Finally, balancing supply and demand, sustainability, security risk, cost and the need to act responsibly is challenging for multinationals. Establishing tax efficient energy structures to drive business performance is therefore the key. :
To download a free copy of the survey visit www.eurofast.eu  by email [email protected]  or call 22-699222.