Chemrez Technologies Inc. plans to transfer its biodiesel segment’s registration to a renewable energy developer of biomass resources (biodiesel), a move that will allow it to avail of various fiscal and nonfiscal incentives under the Renewable Energy Law.
In a disclosure to the Philippine Stock Exchange Thursday, the company said its board of directors has approved the proposed transfer.
Under the Renewable Energy Law, renewable energy developers can avail of a seven-year income tax holiday, exemption from value-added tax and duty-free importation of equipment and machinery, reduction of corporate income tax after the expiry of the income tax holiday to 10 percent of net income as well as a zero percent VAT rate for the sale of power from RE sources.
The law also exempts the proceeds from the sale of carbon credits from all taxes.—Amy R. Remo