RR No. 2-2026

Bringing ln Revenues for Nation'Building REPUBLI( OF THL PHILIPP:^.'ES DLPARTI,IE*'T OI- FINANCIl BUREAL OF I}-TERN]\L REvE\UE )Jational Ollice Building Otrc1n ( it| \l BAGONC r ri- ip, iJ,a 5 l4AR $jr. ?0?$ REvENTTE REGULATToNs No. 0 0 2 -2 26 st iB.IE( 1 Guideli'ner in the Availment of the Fiscal Incentil'es Under Section -1ll of llepublic Act No. l2l20. Othenrise KnoBn as the "Philippine \atural Gas lndustn- DC\elonment Act" TO .\ll lnternal l{e\enue OIficials, Emplole('s and Oth(,rs Contcrncd SECTION l. SCOPE. - l\irsuart lo Secliols 144 and 2,15 ol the National lnternal RcT enue Codc ol 1997. as arnentlcd ('lax Codc). and in accordance with the State's polic) to plornold nalural gas as a sal!. el,icient. and cost-efficli\e energ) source. these Regulations arc lrcrebl issucd to proride guidclines in thc a|ailment ol lhe tax incentires provided under Section i8 ol Republic .\ct (RA) No. lll20. otherqise kno$n as the "Philippine Natural Gas Industrl I)e\ cloprllcnt Act . SIiCTIO\ 2. ITEFINITION OF TERMS. - li)r puryoses ol'lhese Regulations. thc lblloNing tcmrs shall ht dcllned as lbllo,rs: (a ) - lgg, cg.?rl.r? rclers lo the procurcnent ol indigenous natural gas. combining it rvith inrported Liquelied Natural Gas. and selling the aggreqated gas 1(, gas bu)ers in thc Philippines oI ilhroad. by Panicipant./s kno\rn as aggregators: (b).lttt'illarl .r.,r'r'i(c.\ are those services provided b1' a generation facilit), usiDU indigenous natural gas and/or aggregatcd gas. uhich are necessary to support the trrn.irnission anr] distribution of elecrricitr : \.\ Di.\trihltioti [.//1ilt rctirs to an] cl('ctric cu)perati\,e. pri\,ale coqtoralion. 80\crnn1.n1-o\\ned utility or existing Iocal go\emnrent unit \\hich has an crclusire lianchisc to operate a distrihulion slstenr in accordance sith RA No. 9l16 or thc l:lcctric Po\\er Iodustr'l'Rclbrm r\ct o1 200|: \dl Gotlrdtion lir( i/it-r' rcltN to a l'acilitl for the production ol electricit-!- andlor thcrnlal cnerg\ such as. but not limiled to. steam. hol or cold $ater: \e) Inligt tdl.t -\'utuol Gas rclers to nallral gas produced tiom tields $illrin lhe tcrrilo aliurisdiction of the Republic ol'lhc Philippines: \l) l.iqualicd .\'aturul (;dr rct'crs to narural gas rhar has bccn liquclicd bl. cooling at a cr\oltcnlc lclltPcralure ,(:) BUREAU OT INTE9I'IAI. RTYENUE \'2 nEcoFDt./ANA64MtNT 0rVlSLonl BIR Natronal Otrice Bldg., Senator lvliriam Defensor-Santiago Avenue W ebsite: www. bi r. g o v. p h '$+Atrl?,1020 Trunkline: 8981 -7000 : 8929-7676 MIN UNI RYr i,;l.Ll,tu: (g) /'r11i. r).//7/ relcl.!j to a natural orjuridical person rvho engagcs iD the trade ofDatural gas cither as a supplicr. aggregator. bunker trader- or resellcr: (h ) /'!/-r,il relirs k) an authorization issued b) the Depanment ol llnerg)' (DOL) lbr the siting. construclion. operalion and maintenance. expansion. nrodiflcation. rchabilitation. decommissioning. atrd abandonment ol Philippine Downstream Natural Gas Industr)' (PDNGI) facilities for Own-t.lse or 1'h:rd-Part)' Acccss (TP.\). 11 shall likc\ise appll to the accreditation of Parlicipants in the trade ol' nlrrurul gas. including but Dot limiled to lhe purchasc. supply. aggiegalion. bunkering. rcsc'lling. and e\pon olnatural gas. and an)' olhcr acti\ it) relaled to lhe PI]\GI: ti) l)arntit lLtldL'r rclers ro a nalural orjuridical pcrson uho owns the PDNGI Iiacilir) and is gmr)lcd a pennit b) lhe DOh lo cngage in the siting. construclion. opcrrtiorl ond nraintcnancc. e\pansion. modillcation. rehabilitation. dccommissioning. and abandonment oI PDN(iI Facilitics tbr Olrn-use or TPA: t.yl I'hilippint Dnrn:tR.ut1 -\ltturul (it: ltllustr_\' Facilit.\ or PD.\lj1frrcilin relcrs to thc Liqucllcd \arlral Cas St(xase and Regasillcaiion Ierminal. PD\C 'I ransmission Sr slcm. and PDN(i I)istribution S) stem. and other related lacilirics: (k) /i.,.\ri1i,?g retcrs lo the procuring oi natural gas from a suppliei or aggregator and resclling it to gas buvers b) a Panicipant known as reseller: and (l) .i4,/,{r ret'ers 1(r lhe procuring or producing and selling ofindigenous or imponcd narural gas to gas bulers in thc I'hilippines or abroad b1 a Panicipant known as a supplier. Stl(-tlO\ 3. FIS('AL INCE),iTMS. - lhe tiscal incentirc's pror ided uuder Secrion i8 ot' il.\ \o. I I ll0 are es lirllos s: vALt E-ADDUD TAX (VAT) EXEMPTION. - The purchasc and sale of indigenous natural sas. aggrcgaled gas and po\\er generated b1 generation f'acilities using indigenous natural gas and aggregated gas shall bc cxcmpl lrom VAT. Pro\ ided. that the erunrption fionr vtT lirl aggregaled gas is orl). to lhe extenl of thc amount ol indigenous natural gas atlribured to be in the aggrcgalcd gas. This includes: t. purchlse and salc ol'indigcnous natural gas and aggregarcd gas by an aggregalor- reseller. supplicr. person authorized b) the Etrerg! Rcgulatorl Commission (t:RC) lo operate l'acilities used in the generation ofelectricitr'. or an end-user: and ll purchasc and sale of electricity or aacillarl serviccs produced b1 a gencralion lacilit\ using indigcnous natural gas and/or aggrcgated gits h) a person autho zed to: ( I ) opcrale f'aciliries uscd in rhc qcncration ol clcctricitl or ,(-.\BURTAU OT INTERNAT REVENUI u7 Ftco805 Ma^r!cFMENT DrvtstON ancillarr ser,ices: (:) scll. bloker. n)arkct or aggregate electricil\. lo end-users: MAR 17 2026 Pagc 2 R ADMIN UNIT. 2 L \M,t. -L)Alrrt I 1.1) consolidatc clc'ctric po\1er denrand ol erd-usexs lbr thc purposc ofpurchasing and reselling e:ec:r'icit) on a group 1.t) cngage in ll're distribulion ofelectricity: or ri) fr,'iure,'r pru\ide ancillarr serrices. Ihesc shall includc-all nlodes ol'purchase and sale. \rhelhcr through a suppl) agrcenrelt: a cluh aulhorized market such as. but not limited to. the wholesale elect cit) spot narkel or lhc alcillar! reselvcs marlel. llnancial gas contacts. NGSPA: or thro[gh olher l]rodcs. b. INCIi\TIVES IiNDER,TITLE XIIt OT- THE TAX CODE.. AII I,DNGI liaciliiies. as ce i,ied b) thc I)OI]. rnal avail ofthc tax incenti\es under-l'i:le XIII ofthe Tar Code. pror idcd that they are included in lire Stralcgic ll\'eslment Prioritl' Plan (SIPP) and duly registerc'd rr ith the Board of Inr estnrents (BOl). SICTIO\ J. REQI]IRENIEN'TS FOR THE AVAILN,IENT OT' THE VAT EXEll Pl lON. - l o qualit lbr V, \-l exenptiorl. the fbllo\.-ing documcnls shall be altached 10 rhe Qunflcrl) VAI Dcclaration (tslR Fomi No.2550Q): l. Ior I'artiripants: ru I-,lldorscmenl liom the DOE s (]il Industr] Managcmenl Burea, (OIMB) conlir irlg that thc Participant is engaged in the sale of lrdigcnoLls Natural (;as u.der S.'ction i(a)(i) hc.col': and ii* ii. I)Otr-OINIB Ccnilrcirlion indicating the volume and percentage ol' = Indigcnous Natural Gas sold b1 a Pa.licipanl lbr the tarable quarter. * z -l ?'i For (;en(]ration Ficilitaes: :i3, a> i. Ilndorsement liom l)OL's Eleclric Po\\er Indusrry Managcmcnt Bureau ll.PIllBi conlinning that thc Ceneralion facilit)' is using Indigenous Natural Y, t9 (ias under Section -l(a)(ii) hereol': and It z; l)OE-EPIMB Cefiification on the power p.oduced fiom Indigenous Natural Oas lbr thc corresponding taxable quaner. ln both cases a Crrtified Truc Copy of the DOI Permit shall be aitached to rhe DOI_ IlndorsemcnL In prcparing thc Qr.ranerll VAT Declaration. raxpalers shall indicate tlre lesal basis ofrhe \r,\ T e\emprion a\ ailed ol'(i. ?.. Stction 38 of R.1. ,\o. / ?1?0) on Field Ilem Nurnber l4A (]1- the Qual.tcrl) V,\l Dec]aralion. SECTIO\ 5. RI.]QT]IItENIENTS FOR AVAILMENT OF INCENTIVES TJNDER 1'ITLE Xlll OF THE TAX CODE. The a\ailmcnl ot'incentives under'litle XIII of rhc-lar Code shall hc gorctred h1 thc pro\isions ot Title XIII olthe Tax Codc and its ImplemenliDg Rules and RcllLrlalions. Page I i SECTIO\ 6. PROHII]ITION A(;AINST DOTJBl,E AVAII-MENT OF INCENTIvES. _ L'nk'ss ol|!-r\\isc pror idcd b1 la\\.1he a\ailnrent ol tiscal incentires under'Iillc XIll ol lhe l as Coric shall bearlisqualiiicatirlno0rhea\ailnlentofsimilartaxincenlivesprovidedunder rhc R.\ \,, llll0:rnJ,rtlrc'rsl.'trrl l.rrrs. SECTlO\ 7. RItPEALtNC CLAUSE. - All revenuc rulcs and regulalions and olher re\ enue issuances or pans thcreol. rrhich are inconsislent $ith these Regulations. are herebl'amended or modillcd accordingl]. SUCl l0\ li. SEPAILABILITY CLAUSE. - lfany clause. sentence. provision or section ol these Il.sulariurs shall be held in\alid or unconslilutional. the remaining parts lhereof shall not be ill!'cled lhereb]. SECTIO\ 9. EFFECTMTY. - l hcse Rcgulations shall take elibct fit'teen ( 15) da) s lbllo\\in! ils publication in the Ollicial Gazette or in the BIR Oflicial websitc. rrhichercr cotnes iirst- ,f FREUF:trrCK D. (;O .\,rrttut ol l-irutt.'t . Ilecom m eDd ing .\ppro1 al: M^i 1i, lfi ("1 \ z a-*r' F,\ .2 ('tlARl.ll O trlARTlN* R. lvtENDOZ,,\ aw/ (' t nn n i t t i r ntt, r r i I tttt: r nul Rtyc nut ,<:\ BURTAU OF IiITERNAL REVENUE t2 RECOcn\ MANr'. rMaNr ijrvrsfi)N MAR 17 2026 \-r I:\( RI RI][ I(i( \ R MIN UNIT. 2 BYI T]ME l'ase {