Tax treatment for NZ emissions units can be tricky

Most NZ emissions units are taxable when they're sold. (Image: Getty)

Fri, 21 Oct 2022

Landowners and farmers may see the planting of new forests and buying and selling of New Zealand emissions units as easy money, but they need to keep in mind that Inland Revenue will still get its cut.Most NZ emissions units (NZUs) – equivalent to one tonne of carbon dioxide equivalent (CO2-e) emissions produced – are taxable when sold.And those that aren't classed as ‘replacement units’ for others already sold must be brought in at cost at the end of the income year.In fact, only those units that are bought to repla...

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