Calculate Your LNG Income

Beginning January 1, 2017, the Liquefied Natural Gas (LNG) Income Tax rates are:

Your LNG income tax is calculated at the lower rate on your net operating income only while your net income is zero. Any tax you pay on your net operating income will be accumulated in a tax pool and be applied against the tax you pay on your net income.

There may be a year when you have net operating loss account and capital investment account deductions and positive net income, and you may have to calculate tax on both net operating income and net income. Once you have recovered your investment in your capital investment account and have no losses left in your net operating loss account, then the higher tax rate on your net income applies.

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

Learn how to calculate the LNG income tax you may have to pay.