Income Tax (Petroleum) Act · 2022 Revised Edition · Part · Imposition of Tax and Ascertainment of Chargeable Profits
10. Deductions not allowed
Official textFrom Attorney General's Chambers, unchanged
Subject to the express provisions of this Act, for the purpose of ascertaining the chargeable profits arising from petroleum operations of any company, no deduction shall be allowed in respect of —
chargeable profits
“chargeable profits” means profits ascertained in accordance with the provisions of section 8 or 10A;
any disbursements or expenses not being money wholly and exclusively laid out or expended for the purpose of those operations;
any capital withdrawn or any sum employed or intended to be employed as capital;
any capital employed in improvements as distinct from repairs;
any loss or expense recoverable under a policy of insurance or contract of indemnity;
rent of or cost of repairs to any premises or any part thereof not used for the purpose of those operations;
any amount paid or payable in respect of income tax, profits tax or other similar tax charged within Brunei Darussalam;
Brunei Darussalam
“Brunei Darussalam” includes the submarine areas beneath the territorial waters of Brunei Darussalam and the submarine areas beneath any other waters over which the Government exercises or may hereafter exercise sovereign rights in respect of minerals;
any amount paid or payable in respect of income tax, profits tax or other similar tax charged outside Brunei Darussalam to the extent that the amount is allowed by way of relief from or credit against tax charged under this Act;
Income Tax (Petroleum)
petroleum
“petroleum” means any mineral oil or relative hydrocarbon and natural gas existing in its natural condition and casing-head petroleum spirit but does not include coal or bituminous shales or other stratified deposits from which oil can be extracted by destructive distillation;
any payment to any pension, provident or other society or fund except such payments as are allowed under section 9(1)(f);
the depreciation of any premises, buildings, structures, works of a permanent nature, plant, machinery or fixtures;
any sum payable to the Government under any oil mining agreement in consequence of the company having failed to comply with its expenditure obligations under such agreement;
company
“company” means a company incorporated or registered in Brunei Darussalam under the Companies Act or under any law in force elsewhere, but does not include the company acting as a State Party in a petroleum mining Agreement in accordance with the Petroleum Mining Act;
any sum payable by way of interest upon any money borrowed by such company.
Terms defined in s 2
Brunei Darussalam
Defined · s 2“Brunei Darussalam” includes the submarine areas beneath the territorial waters of Brunei Darussalam and the submarine areas beneath any other waters over which the Government exercises or may hereafter exercise sovereign rights in respect of minerals;
chargeable profits
Defined · s 2“chargeable profits” means profits ascertained in accordance with the provisions of section 8 or 10A;
company
Defined · s 2“company” means a company incorporated or registered in Brunei Darussalam under the Companies Act or under any law in force elsewhere, but does not include the company acting as a State Party in a petroleum mining Agreement in accordance with the Petroleum Mining Act;
petroleum
Defined · s 2“petroleum” means any mineral oil or relative hydrocarbon and natural gas existing in its natural condition and casing-head petroleum spirit but does not include coal or bituminous shales or other stratified deposits from which oil can be extracted by destructive distillation;
petroleum operations
Defined · s 2“petroleum operations” means searching for and winning or obtaining of petroleum in Brunei Darussalam by or on behalf of a company for its own account by any method or means in the course of a business carried on by a company engaged in such operations, and all operations incidental thereto, and the sale or disposal by such company or any other company carrying on business through a permanent establishment in Brunei Darussalam of petroleum so won or obtained, and includes the transportation within Brunei Darussalam by such companies of petroleum so won or obtained to any point of sale or delivery or export and any field process necessary to reduce petroleum so won or obtained to a marketable condition, but does not include — (a) any transportation of petroleum outside Brunei Darussalam; (b) any process of refining at a refinery; or (c) any dealings with products so refined;
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