Page 10 - The South China Business Journal
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The Preliminary Discussion
& EEnnvviirrooonnnmmt heeennttDaaellvPPe rlrooottpeemcctteiiononnt of
Policies
Tax Law
By Andy Leung, Partner of Indirect Tax; Brian Ho, Greater China Sustainability Leader of Ernst & Young LLP
Recently, the Chinese government has increased In order to adapt to the continuously tightening envi-
awareness on the environmental issues arising ronmental regulations, Brian Ho1 from EY CCaSS team
from the country’s population growth and economic suggests the affected enterprises can consider whether to
development. In addition, the amendment of the Envi- take the following measures:
ronmental Protection Law and the tightening of envi-
ronmental rules, which features harsher punishments 1. Establishing the internal management system of
and reinforced supervision to the polluting enterprises. environmental policies
Therefore, the American Chamber of Commerce in
South China (AmCham South China) and EY co-hosted The affected enterprises should establish adequate
a seminar on ‘How foreign enterprises manage the risks internal management system to enhance the level of
associated with the rapid development of environmen- environmental compliance.
tal protection policies’, and also shared the findings on
Environmental Protection Tax with the attendees. 2. Disclosing environmental information proactively
The affected enterprises should consider disclosing
Tackling the Development of Environmental Policies their efforts spent on their environmental protection via
annual reports or separated sustainability reports. This
In the recent decades, the government has demonstrated could enhance trust level from the public especially the
its determination in protecting the environment by imple- environmental protection attitude of enterprises.
menting a series of environmental laws, such as the Law on
the Prevention and Control of Atmospheric Pollution, Law 3. Seizing green opportunities
on the Prevention and Control of Water Pollution, Law on With the introduction of measures and more favour-
the Prevention and Control of Environmental Pollution able policies for encouraging the investment in envi-
by Solid Waste. Furthermore, the implementation of the ronmental protection，the affected enterprises can issue
new strictest-ever Environmental Protection Law in 2015, green bonds or other means of green financing to fund
followed by the enactment of a series of environmental the establishment and the operation of environmental
laws in 2016 and 2017, including the Law of Environmental projects. Hence, the pursuit of sustainable develop-
Protection Tax and the New Pollutant Discharge License, ment with long-term social and environmental benefits
which urge the transformation of those enterprises towards enables those enterprises to be in an advantageous posi-
a more sustainable development. tion in the fierce market competition.
For instance, the New Pollutant Discharge License re- Meeting the Compliance Challenges of Environ-
quires more comprehensive and detailed environmental mental Protection Tax Law
information to be disclosed by the affected enterprises
to enhance environmental information transparency. The Environmental Protection Tax Law of the People’s
The enterprises need to have a deeper understanding of Republic of China (the “EPT Law”) is the fifth tax law
the environmental development and trend of the regula- issued by China which aims to protect and improve the
tions in order to develop better the internal environ- environment and reduce pollutant emissions. It replaces
mental management strategy. the existing Pollutant Discharge Fee (i.e. PDF) by the
Environmental Protection Tax (“EPT”) from 1 January
1 Brian Ho, Greater China Sustainability Leader of EY Climate Change
of Sustainability Services (‘CCaSS’) team
8 AmCham South China
The Preliminary Discussion
& EEnnvviirrooonnnmmt heeennttDaaellvPPe rlrooottpeemcctteiiononnt of
Policies
Tax Law
By Andy Leung, Partner of Indirect Tax; Brian Ho, Greater China Sustainability Leader of Ernst & Young LLP
Recently, the Chinese government has increased In order to adapt to the continuously tightening envi-
awareness on the environmental issues arising ronmental regulations, Brian Ho1 from EY CCaSS team
from the country’s population growth and economic suggests the affected enterprises can consider whether to
development. In addition, the amendment of the Envi- take the following measures:
ronmental Protection Law and the tightening of envi-
ronmental rules, which features harsher punishments 1. Establishing the internal management system of
and reinforced supervision to the polluting enterprises. environmental policies
Therefore, the American Chamber of Commerce in
South China (AmCham South China) and EY co-hosted The affected enterprises should establish adequate
a seminar on ‘How foreign enterprises manage the risks internal management system to enhance the level of
associated with the rapid development of environmen- environmental compliance.
tal protection policies’, and also shared the findings on
Environmental Protection Tax with the attendees. 2. Disclosing environmental information proactively
The affected enterprises should consider disclosing
Tackling the Development of Environmental Policies their efforts spent on their environmental protection via
annual reports or separated sustainability reports. This
In the recent decades, the government has demonstrated could enhance trust level from the public especially the
its determination in protecting the environment by imple- environmental protection attitude of enterprises.
menting a series of environmental laws, such as the Law on
the Prevention and Control of Atmospheric Pollution, Law 3. Seizing green opportunities
on the Prevention and Control of Water Pollution, Law on With the introduction of measures and more favour-
the Prevention and Control of Environmental Pollution able policies for encouraging the investment in envi-
by Solid Waste. Furthermore, the implementation of the ronmental protection，the affected enterprises can issue
new strictest-ever Environmental Protection Law in 2015, green bonds or other means of green financing to fund
followed by the enactment of a series of environmental the establishment and the operation of environmental
laws in 2016 and 2017, including the Law of Environmental projects. Hence, the pursuit of sustainable develop-
Protection Tax and the New Pollutant Discharge License, ment with long-term social and environmental benefits
which urge the transformation of those enterprises towards enables those enterprises to be in an advantageous posi-
a more sustainable development. tion in the fierce market competition.
For instance, the New Pollutant Discharge License re- Meeting the Compliance Challenges of Environ-
quires more comprehensive and detailed environmental mental Protection Tax Law
information to be disclosed by the affected enterprises
to enhance environmental information transparency. The Environmental Protection Tax Law of the People’s
The enterprises need to have a deeper understanding of Republic of China (the “EPT Law”) is the fifth tax law
the environmental development and trend of the regula- issued by China which aims to protect and improve the
tions in order to develop better the internal environ- environment and reduce pollutant emissions. It replaces
mental management strategy. the existing Pollutant Discharge Fee (i.e. PDF) by the
Environmental Protection Tax (“EPT”) from 1 January
1 Brian Ho, Greater China Sustainability Leader of EY Climate Change
of Sustainability Services (‘CCaSS’) team
8 AmCham South China
