Petroleum Production Profits (Determinanon of Total Income)

L.N. 19 of 1982

INCOME TAX ACT, 1948

(ACT NO. LIV OF 1948)

Petroleum Production Profits (Determinanon of Total Income)

Rules, 1982

IN exercise of the powers conferred by subsection (1) of section 10

and subsection (1) of section 79 of the lncome Tax Act, 1948, h.ereinafter

referred to as the "Act", the Minister of Finance has made the fol1ow-

ing rules:-

l. These ru1es may be cited as the Petroleum Production Profits

(Determination of Total Income) Rules, 1982 and shan have effect as

from the year of assessment commencing on the first day of January,

1982.

Dawn ir-regoli jistgħu jissejħu r-Regoli ta' 1-1982 dwar Profitti Titolu u bidu

mill-Produzzjoni tal-Pitrolju (Kif jiġi stabbilit l-Income Totali) u għandu fis-seħħ.

jkollhom effett mis-sena ta' stima li tibda fl-ewwel ta' Jannar, 1982.

When a person derives gains or profits from sources mentioned

in paragraph (ii) of the proviso to subsection (1) of section 10 of the Act,

then so far as concerns the gains and profits derived by that person under

a petro1eum production sharing contract, the total income shall be

ascertained in the manner provided for in these rules.

.

The total income of a person deriving gains or profits as is men-

tioned in the foregoing rule shall be equivalent to the value of the

petroleum to which, in accordance with the contract under which the

operations are carried out, such person is entitled as his share of that

quantity of petroleum remaining after deducting from the net production

of petroleum the cost recovery petroleum, such value being also deter-

mined in accordance with the said contract

Provided that where the value of the cost recovery petroleum

for any calendar year exceeds the actual costs recoverable during that

calendar year inc1uding any recoverable costs carried forward the total

income ascertained as aforesaid shall be further increased by an amount

equivalent to the value of the share of such excess cost recovery

petroleum to which such person is entitled under the contract.

'

For the purpose of these rules each petroleum production shar-

ing contract shall be deemed to be a separate and distinct source of

income and any person deriving gains or profits from more than one

such contract shall be subject to tax as if he were a separate person

with respect to each of such contracts.

Ippubblikat mit-Taqsima tat-Tagħrif -

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Published by the Information Division -

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