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RMC No. 45-2017: Publishes the full text of Executive Order No. 19, entitled “Reduction and Condonation of Real Property Taxes and Interests / Penalties Assessed on the Power Generation Facilities of Independent Power Producers under Build-Operate-Transfer Contracts with Government-Owned or -Controlled Corporations”

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Summary

RMC No. 45-2017 publishes the full text of Executive Order No. 19, which reduces and condones Real Property Taxes and interests and penalties on power generation facilities of Independent Power Producers (IPPs) under Build-Operate-Transfer contracts with GOCCs.

Key points

  1. Reduced liability. Real Property Tax liabilities for 2015 and 2016, including special levies for the Special Education Fund, are reduced. The reduced amount is the tax due at an assessment level of fifteen percent (15%) of the Fair Market Value, depreciated at two percent (2%) per annum, less amounts already paid. This covers property, machinery and equipment actually and directly used by IPPs to produce electricity under Build-Operate-Transfer and similar contracts with GOCCs.
  2. Interest condoned. All interests on the deficiency Real Property Tax liabilities are condoned, and the IPPs are relieved from paying them.
  3. Excess payments. Any 2015 and 2016 payments above the reduced amount are applied to the IPPs’ Real Property Tax for the succeeding years.

Who is affected

  • Independent Power Producers with Build-Operate-Transfer and similar contracts with GOCCs

Deadlines and effectivity

  • Applies to Real Property Tax for the years 2015 and 2016

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.

Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.