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Revenue Memorandum Circular (RMC) No. 6-2015 - Reduction and condonation of real property taxes on the power generation facilities of IPPs under BOT contracts with GOCCs

Revenue Memorandum Circular (RMC) No. 6-2015 - Reduction and condonation of real property taxes on the power generation facilities of IPPs under BOT contracts with GOCCs

Reduction and condonation of real property taxes on the power generation facilities of IPPs under BOT contracts with GOCCs


The BIR recently issued Revenue Memorandum Circular (RMC) No. 6-2015 which circularizes Executive Order (EO) No. 173 dated October 31, 2014.

Under Section 1 of EO No. 273, as circularized in RMC No. 6-2015, all liabilities for real property tax on property, machinery and equipment (including special levies accruing to the Special Education Fund) actually and directly used by IPPs for the production of electricity under Build-Operate-Transfer (BOT) contracts (whether denominated Power Purchase Agreements (PPA), Energy Conversion Agreements (ECA) or other contractual agreements) with GOCCs, for all years up to 2014 are reduced to an amount equivalent to the tax due computed based on an assessment level of 15% of the fair market value of said property, machinery and equipment depreciated at the rate of 2% per annum, less amounts already paid by the IPPs.

Further, all fines, penalties and interest on such deficiency real property tax liabilities are condoned and the concerned IPPs are relieved from payment.

File name: 12315RMC No 6-2015.pdf
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Created date: Friday January 23, 2015 04:04:48
Last updated date: Friday January 23, 2015 04:04:48
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