Income Tax (Petroleum) Act · 2022 Revised Edition · Part · General
48. Method of calculating relief to be allowed for double taxation
Official textFrom Attorney General's Chambers, unchanged
The provisions of this section shall have effect where, under arrangements having effect under section 47, foreign tax payable in respect of any income in the territory with the Government of which the arrangements are made is to be allowed as a credit against tax payable in respect of that income in 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;
In this section, “foreign tax” means any tax payable in that territory which, under the arrangements, is to be so allowed; “income” means that part of the profits for any year of assessment which is liable to both tax and foreign tax, before the deduction of any tax, foreign tax, credit therefor or relief granted under subsection (6).
year of assessment
“year of assessment” means the period of 12 months commencing on the 1st day of January 1963, and each subsequent period of 12 months.
The amount of the credit admissible to any company under the terms of any such arrangements shall be set off against the tax chargeable upon that company in respect of the income, and where that tax has been paid, the amount of the credit may be repaid to that company or carried forward against the tax chargeable upon that company for any subsequent year of assessment.
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;
The credit for a year of assessment shall not exceed whichever is the lesser of the following amounts —
the amount of the foreign tax payable on the income; or
55 per cent of the income.
Without prejudice to the provisions of subsection (3), the total credit to be allowed to a company for any year of assessment for foreign tax under all arrangements having effect under section 47 shall not exceed the total tax which would be ultimately borne by that company for that year of assessment, if no such credit had been allowed.
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;
Where the income includes a dividend and under the arrangements foreign tax not chargeable directly or by deduction in respect of the dividend is to be taken into account in considering if any, and if so what, credit is to be given against tax in respect of the dividend, the amount of the income shall be increased by the amount of the foreign tax not so chargeable which falls to be taken into account in computing the amount of the credit.
Where the amount of the foreign tax attributable to the income exceeds the credit therefor computed under subsection (3), then the amount of that income, to be included in computing profits for any purpose of this
Act other than that of subsection (3) shall be taken to be the amount of that income increased by the amount of the credit therefor after deduction of the foreign tax.
Any claim for an allowance by way of credit shall be made not later than 2 years after the end of the year of assessment, and in the event of any dispute as to the amount allowable the Collector shall give to the claimant notice of refusal to admit the claim, which shall be subject to appeal in like manner as an assessment.
Collector
“Collector” means the Collector of Income Tax appointed under section 3 and includes for all purposes of this Act, except the powers conferred on the Collector by sections 38, 39 and 42, a Deputy Collector so appointed;
Where the amount of any credit given under the arrangements is rendered excessive or insufficient by reason of any adjustment of the amount of any tax payable either in Brunei Darussalam or elsewhere, nothing in this
Act limiting the time for the making of assessments or claims for repayment of tax shall apply to any assessment or claim to which the adjustment gives rise, being an assessment or claim made not later than 2 years from the time when all such assessments, adjustments and other determinations have been made, whether in Brunei Darussalam or elsewhere, as are material in determining whether any, and if so what, credit falls to be given.
Income Tax (Petroleum)
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;
Collector
Defined · s 2“Collector” means the Collector of Income Tax appointed under section 3 and includes for all purposes of this Act, except the powers conferred on the Collector by sections 38, 39 and 42, a Deputy Collector so appointed;
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;
year of assessment
Defined · s 2“year of assessment” means the period of 12 months commencing on the 1st day of January 1963, and each subsequent period of 12 months.