Gov’t expects over P9-B income taxes from Malampaya

MANILA, Philippines – The Bureau of Internal Revenue (BIR) expects to collect P9.185 billion in corporate income taxes from the consortium operating the Malampaya gas project this 2013, the same as the collection goal in 2012.

The amount is based on BIR’s Large Taxpayers Audit Division II report as of January 4. The final 2012 collection figures are not yet available.

The corporate income the BIR collects from the consortium is separate from the royalties the government earns from its 10% stake in the project.

The Malampaya project is developed and operated by Shell Philippines Exploration B.V. (SPEX) with joint venture partners Chevron Malampaya LLC and the Philippine National Oil Company Exploration Corporation (PNOC-EC).

Under the service contract agreement, 70% of the gross proceeds from the sale of natural gas would go to the contractor to cover the investment cost. The remaining 30% will be shared between the government and the consortium on a 60-40 basis, respectively.

Once the contractor recovers its investments, the 30% share would then increase, allowing the government to gain more from these petroleum projects.

The deepwater gas-to-power project represents the first attempt to draw natural gas from beneath the waters of the Philippines. The project supplies natural gas to 3 power stations generating a combined 2,700 megawatts of electricity, which supplies over 40% of the power requirements of Luzon. – Rappler.com