[SB
[282]
A BILL
[EXECUT
FOR
AN ACT TO AMEND THE PETROLEUM PROFITS TAX ACT, 2004
AND FOR OTHER MATTERS CONNECTED THEREWITH
Commencement,
1. The Petroleum Profits Tax Act 2004 in this Act referred to as "the
principal Act") is amended as set out in this Act.
2. Section 2 of the principal Act is amended
Amendment
0f 2004 Cap.
21 15.
Amendment
of Section 2.
(a) by inserting after the definition of" crude oil" the definition of "
development area" as follows
"development area" means the area in respect of which an oil mining
Amendment of
Section 8,
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Amendment of
Section 9.
"(1) (A) subject to any express provisions of this Act in relation to any
(b) all income of that period incidental to and arising from such
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section
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Amendment
of Section 21.
10 as follows
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" (1) (A) the rate of tax for any accounting period; applicable to operations
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when 1.4 < R < 2.5 Rate of tax shall be 20% +((R-1.4)/(2.5-1.4"*
55%
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or a deep offshore contract area, the rate of tax shall range from 15% to
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65%.
accounting period;
"Cumulative Tax Paid" means all tax liability together with the following
6 indirect taxes levied by competent indirect taxation authorities (NDDC levy and
7 education tax) levied from the commencement of business
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1 operations within a development area shall be an amount equal to the product of rate of
1 tax and the chargeable profits of that period in respect of the said operations".
12 7. Section 45 (1) of the principal Act is amended by inserting immediately
Amendment
13 before the full-stop, the words "except that in respect of upstream gas operations,
of Section 45,
General
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Second Schedule to the Principal Act, replace the words "petroleum operations" 18
with the words "petroleum operations or upstream gas operations" wherever
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Amendment
of the 2nd
Schedule.
follows
"(1) (A) subject to the provisions of this Schedule, where a company owning any
asset has incurred in respect thereof qualifying expenditure wholly, exclusively and
necessarily for the purposes of upstream gas operations carried on by it, there shall be
due to that company as from the accounting period in which the
company commences production as certified by the Minister(" commencement of
production") an allowance (hereinafter called "an annual allowance") at the
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Amendment
of table II to
the second
schedule.
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appropriate rate per centum specified in table II A of this Schedule".
10. Table II to the Second Schedule to the principal Act is
inserting immediately after table II a new table II A as follows
Rate Percentum
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Second year
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Third year ..
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Amendment
of the Third
schedule to the
principal Act.
Fourth Year
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immediately
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Amendment
of the Fourth
schedule to the
principal Act.
Short Title.
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13. This Act may be cited as Petroleum Profits Tax (Amendment) Bill,
2006