Understand Your LNG Income Tax

You will pay Liquefied Natural Gas Income Tax on income from liquefaction activities at an LNG facility in B.C. beginning January 1, 2017. When you engage in liquefaction activities in B.C. you need to register as a taxpayer and file LNG income tax returns unless you're exempt from tax.

The tax is applied on a facility-by-facility basis. You must register each facility and file separate tax returns for each facility. However, you can consolidate income from different liquefaction activities at a single facility.

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During the period when your net operating loss account and capital investment account are being deducted, you pay tax on your net operating income. Once these accounts reach a zero balance, you pay tax on your net income. Any tax paid on your net operating income will be accumulated in a tax pool and applied against the tax you pay on your net income.

Specific rules apply if you are a member of a partnership engaged in liquefaction activities or a corporation that is amalgamating.