Malampaya royalty remittances to government reach US$8.6 billionThe scale of royalty share remitted to national government from the Malampaya gas field project already reached as high as US$8.6 billion (roughly P405.146 billion at current Philippine peso-US dollar exchange rate) as of end 2015, according to official data culled from the Malampaya consortium. The Philippine government provided viable incentives then to the Malampaya gas field project so big-ticket investors would take risk on the venture. There have been differing calculations though as to the extent of the total income tax being pursued. It was noted that cost recoveries are often three-tiered: The contractors’ cost for exploration; then cost for development; and then the annual operating costs of the contractor. The Malampaya consortium also affirmed that R77.2 billion worth of additional tax claims had been lodged on top of the initial amount being demanded by Philippine government in the arbitration case, courtesy of the income tax treatment interpretation by the Commission on Audit.

Source: Manila Bulletin July 28, 2016 14:12 UTC