The Province of British Columbia (B.C.) has finalised the details of its Liquefied Natural Gas Income Tax Act, providing clarity and confidence.
Minister of Finance, Michael de Jong, said that the introduction of Bill 26, the Liquefied Natural Gas Income Tax Amendment Act 2015, fulfils the government’s commitment to defining the remaining elements of a competitive LNG income tax framework.
The bill provides the industry with information about obligations and rights under the act, including the obligation to register, file returns and pay the tax, and the right to appeal. It also sets out the government’s powers to enforce the act.
The bill amends the Natural Gas Tax Credit under the British Columbia Income Tax Act to allow for the credit rate on the cost of natural gas to be adjusted above the existing 0.5% rate by regulation. This flexibility allows the Province to respond to the fluctuating cost of natural gas to maintain a competitive tax structure. The maximum effective reduction of B.C. general corporate income tax rate from 11% to 8% remains unchanged.
This latest phase of legislation adds the administration and enforcement of the Liquefied Natural Gas Income Tax. B.C. will continue to consult with LNG industry stakeholders in developing the regulations.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/26032015/british-columbia-signs-off-lng-tax-bill-490/