Accounting treatment of export incentives MEIS

You should generally recognize the MEIS credit as income at the time of export (when the right to the benefit is established), provided the amount is reasonably certain and measurable. Record it as a "Receivable" until the physical scrip is issued, and then adjust it against your duty liabilities or recognize a gain/loss upon sale. Always verify the latest tax rulings with your consultant, as there are ongoing disputes regarding whether this income is taxable as revenue or exempt as a capital receipt.