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Marina seeks extension of incentives for domestic shippers
THE Maritime Industry Authority (Marina) is seeking for an extension of incentives for domestic shipping companies as the current entitlements are set to expire this year, a government official said.
“Marina has sent the proposal for the extension of the incentives in Congress. We have yet to receive word from the lawmakers as to the scheduling,” Rowena Hubilla, officer in charge at Marina’s domestic shipping service, said in a phone interview.
According to the revised implementing rules and regulations of Republic Act 9295, or the Domestic Shipping Development Act of 2004, Marina-registered domestic ship owners and operators shall be exempted from the payment of value-added tax for the importation and local purchase of passenger or cargo ships gallon tons and above, including spare parts.
Likewise, they are exempted from paying the same tax for lifesaving equipment, firefighting systems, safety and rescue equipment, communication and navigational safety equipment, steel plates and other metal plates, including marine-grade aluminum plates used for transport operations.
Marina-registered ship operators are likewise enjoying a net operating loss carry over.
“A net operating loss in any taxable year immediately preceding the current taxable year, which had not been previously offset as a deduction from gross income shall be carried over for the next three consecutive taxable years immediately following the year of such loss subject to the pertinent provisions of the National Internal Revenue Code of 1997, as amended.”
Fixed assets may be depreciated as follows: “to the extent of not more than twice as fast as the normal rate of depreciation or depreciated at a normal rate of depreciation if the expected life is 10 years or less; or depreciation over any number of years between five years and the expected life the latter is more than 10 years, and the depreciation thereon allowed as deduction from taxable income.”
Source: Business Mirror
“Marina has sent the proposal for the extension of the incentives in Congress. We have yet to receive word from the lawmakers as to the scheduling,” Rowena Hubilla, officer in charge at Marina’s domestic shipping service, said in a phone interview.
According to the revised implementing rules and regulations of Republic Act 9295, or the Domestic Shipping Development Act of 2004, Marina-registered domestic ship owners and operators shall be exempted from the payment of value-added tax for the importation and local purchase of passenger or cargo ships gallon tons and above, including spare parts.
Likewise, they are exempted from paying the same tax for lifesaving equipment, firefighting systems, safety and rescue equipment, communication and navigational safety equipment, steel plates and other metal plates, including marine-grade aluminum plates used for transport operations.
Marina-registered ship operators are likewise enjoying a net operating loss carry over.
“A net operating loss in any taxable year immediately preceding the current taxable year, which had not been previously offset as a deduction from gross income shall be carried over for the next three consecutive taxable years immediately following the year of such loss subject to the pertinent provisions of the National Internal Revenue Code of 1997, as amended.”
Fixed assets may be depreciated as follows: “to the extent of not more than twice as fast as the normal rate of depreciation or depreciated at a normal rate of depreciation if the expected life is 10 years or less; or depreciation over any number of years between five years and the expected life the latter is more than 10 years, and the depreciation thereon allowed as deduction from taxable income.”
Source: Business Mirror
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