The House of Representatives on 2 August 2023 approved the third and final reading of House Bill (HB) No. 8456 (the “Philippine Downstream Natural Gas Industry Development Act”), which would provide the following tax incentives for Philippine Downstream Natural Gas (PDNG) projects:
- 0% value added tax (VAT) on the sale of natural gas
- 0% VAT for liquefied natural gas (LNG) terminals, PDNG transmission systems, and PDNG distribution systems on their purchases of local supply of goods, properties and services needed for development, construction, and installation of their facilities
- Investments to convert facilities from oil and coal to natural gas would be considered as qualified capital expenditures under Section 294 (C) of the National Internal Revenue Code
Source KPMG
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