The Department of Energy (DOE) has simplified the availment of incentives under the Renewable Energy (RE) Act following the amendments to the implementing rules and regulations (IRR) of the law.
In a statement Thursday, the DOE said simplifying the availment of RE incentives aims to further promote the development of the renewable energy industry among local and foreign investors.
“We are pleased to issue an amended policy that would address the long-standing concerns of the RE law’s target recipients, including RE developers, fabricators, and manufacturers regarding the availment of the law’s incentives,” DOE Secretary Alfonso Cusi said.
Last December 24, the agency signed Department Circular 2021-12-0042 amending the IRR of the RE Act.
“This includes, among others, the implementation of the tax provisions, particularly the automatic availment of the 10 percent corporate tax rate and zero-rate value added tax,” Cusi added.
The new DC also simplifies requirements to avail the incentives.
“The circular also complies with the Act, which provides that savings derived from the availment of the reduced corporate income tax rate will be effectively passed on to the electricity end-users in the form of lower power rates,” DOE added.
While attracting more industry players in the local RE sector, the DOE hopes that this move will help the country to accelerate its transition to clean and sustainable energy sources.
The agency is processing the publishing of the DC in two major newspapers of general circulation.
Source: Philippines News Agency