Project Finance NewsWire

December 1999


Older power plants under siege for air emissions

A group of utilities failed in a last-minute bid in November to persuade Congress to freeze the penalties that they might be found to owe the federal government for violating federal Clean Air Act...

IRS Moves To Limit Certain Foreign Tax Planning

The Internal Revenue Service proposed changes in its “check-the-box” regulations on November 26 that would rule out two foreign tax planning techniques that have been used by the project finance c...



Turkey imposed an additional 5% corporate tax on 1998 earnings to help pay for earthquake damage in a measure that cleared parliament on November 26.


Poland cut the corporate income tax rate from 34% to 22% by 2004.

Saudi Arabia

Saudi Arabia is considering allowing foreigners to own up to 75% of joint ventures and offering tax holidays and soft loans to attract more foreign investment ...


China has extended a preferential 15% income tax rate to energy and transportation projects in the interior provinces.

The United States is appealing

The United States is appealing an October ruling by the World Trade Organization that “foreign sales corporations” are an illegal export subsidy.


Indonesia said foreigners selling shares in Indonesia rules ...


India continued its assault on foreigners who invest in India via treaty countries.


MASSACHUSETTS said a cogeneration facility whose contract to supply power to the local utility was bought out by the utility had a higher value for property tax purposes than the cogenerator claimed.


ALABAMA said that a local manufacturing company had to treat all of the dividends it received from two foreign subsidiaries as income from Alabama sources.

Tax Depreciation

Tax depreciation for power plants should be shortened, the Edison Electric Institute urged the US Treasury.

Briefly noted

The airlines have been negotiating an industry-wide settlement with the US Treasury on the issue when costs of standard maintenance on aircraft engines must be “capitalized” and rec...