Library / Implementation Guidelines for the Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order, 2024.

Implementation Guidelines for the Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order, 2024.

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« 
Mel 
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Applicable GTC rate = US$0.9 
, * 
- 
a 
wn 
Gas Tax Credit Claimable = Production per itil Gas Tax: Credit Raté 
‘(100,060,000/4000) x US$09, 
oF 
= 
100;000 XUS$O. 9 
: 
i 
ef 
= 
‘us$90000/ 
§ 
= 
OF 
vas 
2 
Computation of Companies Income Tax due to ‘FIRS 
ae 
Ng 
= by 4 
US$ 
Total profit 
= 
500,000 
CIT @ 30% 
= 
150,000 
Less: Gas Tax Credit claimable 
90,000 
CIT due. 
= 
60,000 
Illustration-G:. 
As in ilustratign F above -but total? ‘profit is US$200,000 
Suggested Solution: to. illustration- G: 
ff 
ABC. Energies Lithifed: 
Computation of Gas Tax’Credit claimable 
i in 2024 accounting period. 
Volume of gas produced = = 100,000, 000. MSCF 
Price perMSCF 
= = US$3.00 
Gas Tax Credit (GTC) Rate: 
Lower of: 
(a) US$1.00 and; 
(b) 30% of US$3.00 = US$0.9 
Applicable GTC rate = US$0.9 
Gas Tax Credit Claimable = Production per MSCF x Gas Tax Credit Rate 
(100,000,000/1000) x US$0.9 
100,000 X US$0.9 
= 
US$90,000 
Computation of Companies Income Tax due to FIRS. 
— 
= 
ol 
US$ 7 
Total profit 
= 
- 
=. 200,000 
CIT @ 30% 
= 
. 
« 
, 
60,000 
Less: Gas Tax Credit claimable 
90,000 
Gas Tax Credit claimed 
60,000. 
60,000 
Gas Tax Credit surplus c/f 
30,000 
a*