Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 250
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mation of Commerciality which shall result
in the transition of the OSW Project from
PDS to development stage. The term of the
development stage shall be the balance of
25 years reckoned from the award of the
OSWESC.
When availing of the applicable incentives
under the RE Act, the RE developer needs
to secure a Certificate of Registration from
DOE after the award of OSWESC. Upon
certification by the DOE, RE developers may
enjoy the following incentives155 under the
RE Act: income tax holiday for a period of
time, duty-free importation of RE machinery, equipment and materials, special realty
tax rates on equipment and machinery, 0%
Value Added Tax (VAT) rate on the sale of
fuel or power generated from RE sources,
zero-rated VAT on purchases of local supply
of goods, properties and services needed by
RE developers in the development, construction and installation of its plant facility
as well as the exploration and development
of RE resources and its conversion into
power, cash incentive for missionary electrification, tax exemption on carbon credits,
tax credit on domestic capital equipment
and services, and exemption from universal
charge, among others.
155 RE Act, Section 15.
Republic of the Philippines
