Income Tax (Petroleum) Act · 2022 Revised Edition · Part · Imposition of Tax and Ascertainment of Chargeable Profits
8. Ascertainment of chargeable profits
Official textFrom Attorney General's Chambers, unchanged
The gross proceeds for any basis period of any company engaged in petroleum operations shall be the aggregate of —
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 actual proceeds of sale of all petroleum sold by the company in that period, or the price referred to in subsection (2), whichever is the higher; and
in the case of petroleum disposed of by the company or petroleum taken by the Government by way of royalty in kind in that period, the price referred to in subsection (2); and
all income of the company of that period incidental to and arising from any one or more of its petroleum operations.
For the purposes of subsection (1), the price of any petroleum sold, disposed of or taken by the Government by way of royalty in kind shall be the price it would have been expected to realise if sold for export at the time of sale or disposal and if the buyer and the seller had been persons not under common control dealing at arm’s length:
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;
Provided that where an agreement as to the price of any petroleum sold for consumption within Brunei Darussalam has been made between the company and the Government, the price so agreed shall be taken to be the price thereof for the purposes of this section.
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;
Income Tax (Petroleum)
The chargeable profits for any basis period of any company engaged in petroleum operations shall be the remainder of the gross proceeds of that company during that period, after the deductions allowed by this Part shall have been made:
chargeable profits
“chargeable profits” means profits ascertained in accordance with the provisions of section 8 or 10A;
Provided that where a company engaged in petroleum operations is also engaged in the transportation of petroleum outside Brunei Darussalam by pipeline and/or tankers operated by or on behalf of the company, then such adjustments shall be made in computing the chargeable profits of that company as shall have the effect of excluding therefrom any profit or loss attributable to such transportation.
petroleum operations
“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;
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;
disposal
Defined · s 2“disposal” and “disposed of”, in relation to petroleum owned by a company engaged in petroleum operations, mean respectively — (a) delivery, without sale, of petroleum to a refinery for refining by or on behalf of the company; and (b) delivered, without sale, to a refinery for refining by or on behalf of the company;
disposed of
Defined · s 2“disposal” and “disposed of”, in relation to petroleum owned by a company engaged in petroleum operations, mean respectively — (a) delivery, without sale, of petroleum to a refinery for refining by or on behalf of the company; and (b) delivered, without sale, to a refinery for refining by or on behalf of the company;
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;
under common control
Defined · s 2“under common control” means in relation to any two persons, a situation where one person has control of the other, or some other person has control of both of them;
Part
Ascertainment of Assessable Tax and Chargeable Tax
Part 5
Part
Returns
Part
Assessments
Part
Appeals
Part
Collection, Recovery and Repayment of Tax
Part
Offences and Penalties
Part