National Grid
Corporation of the Philippines, operator of the country’s power
transmission network, said Wednesday it is exempted from income tax
payment but dutifully pays franchise taxes to the government.
NGCP, a privately-owned company led by businessman Henry Sy Jr. and with a 25-year concession and 50-year franchise to operate the power grid, said it was paying franchise taxes as a part of its contribution to nation-building.
The grid operator made the statement after the Finance Department published a Tax Watch print ad stating that only 39 of the top 100 corporations ranked by the Securities and Exchange Commission landed on the Bureau of Internal Revenue’s list of 500 top corporate/non-individual taxpayers.
NGCP ranked 25th in the SEC’s list, based on revenues, but the BIR’s list, which was based on income tax returns, did not include the transmission company.
“NGCP’s franchise granted through Republic Act 9511 mandates that it pay a franchise tax equivalent to 3 percent of all gross receipts, in lieu of income tax and any and all taxes, duties, fees and charges of any kind, nature of description levied, established or collected by any local or national authority on its franchise, rights, privileges, receipts, revenues and profits, and on properties used in connection with its franchise,” NGCP spokesman Cynthia Alabanza said.
The law, signed on Dec. 1, 2008, grants the NGCP the franchise to operate, manage, and expand the electric transmission business of the country.
The Franchise Law authorizes NGCP to handle the transmission grid for 25 years, renewable for another 25 years, - for a total of 50-year franchise.
The franchise only covers the operations and management of the transmission facilities but the assets, including lines, substations, land, and structures, will remain with the government through the National Transmission Corporation or TransCo.
source: Manila Standard Today
NGCP, a privately-owned company led by businessman Henry Sy Jr. and with a 25-year concession and 50-year franchise to operate the power grid, said it was paying franchise taxes as a part of its contribution to nation-building.
The grid operator made the statement after the Finance Department published a Tax Watch print ad stating that only 39 of the top 100 corporations ranked by the Securities and Exchange Commission landed on the Bureau of Internal Revenue’s list of 500 top corporate/non-individual taxpayers.
NGCP ranked 25th in the SEC’s list, based on revenues, but the BIR’s list, which was based on income tax returns, did not include the transmission company.
“NGCP’s franchise granted through Republic Act 9511 mandates that it pay a franchise tax equivalent to 3 percent of all gross receipts, in lieu of income tax and any and all taxes, duties, fees and charges of any kind, nature of description levied, established or collected by any local or national authority on its franchise, rights, privileges, receipts, revenues and profits, and on properties used in connection with its franchise,” NGCP spokesman Cynthia Alabanza said.
The law, signed on Dec. 1, 2008, grants the NGCP the franchise to operate, manage, and expand the electric transmission business of the country.
The Franchise Law authorizes NGCP to handle the transmission grid for 25 years, renewable for another 25 years, - for a total of 50-year franchise.
The franchise only covers the operations and management of the transmission facilities but the assets, including lines, substations, land, and structures, will remain with the government through the National Transmission Corporation or TransCo.
source: Manila Standard Today
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