Income Tax (Petroleum) Act · 2022 Revised Edition · Part · Imposition of Tax and Ascertainment of Chargeable Profits
8A. Allowance against chargeable profits
Official textFrom Attorney General's Chambers, unchanged
In computing the tax assessable upon the chargeable profits for any basis period, there shall be allowed as deductions against the chargeable profits any royalties paid during or payable in respect of the basis period by the company in respect of petroleum won and saved by the company from the Scheduled Lands.
chargeable profits
“chargeable profits” means profits ascertained in accordance with the provisions of section 8 or 10A;
If during the basis period the Government should take crude oil in kind in lieu of royalty, the crude oil shall be valued at the price it would have been expected to realise if —
crude oil
“crude oil” means oil in its natural state before the oil has been refined or otherwise treated but excluding water and foreign substances;
sold for export at the time of sale or disposal; and
the buyer and the seller had been persons not under common control but dealing at arm’s length in accordance with section 8(2).
Terms defined in s 2
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;
crude oil
Defined · s 2“crude oil” means oil in its natural state before the oil has been refined or otherwise treated but excluding water and foreign substances;
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;
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;
royalties
Defined · s 2“royalties” means and includes — (a) the amount of any yearly payments as to which there is provision for their deduction from the amount of any royalties under any petroleum mining agreement; and (b) the amount of any royalties payable under any such petroleum mining agreement less any such yearly payments deducted from those royalties;
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;
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