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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CIT due 
= 
ei 
Fe, 
Nil 
o 
(Subject to minimum tax rules) 
(Se Ae 
7 
Foye 
4 
; 
“i 
[° 
? 
‘ 
t 
g 
can 
Illustration H 
,. 
+f ry 
~ 
we 
: 
f 
; 
i 
fs 
ABC Energies Limited operatés 
a NAG adie arid commenced itsfirst Gas 
production on 1* April 2024. The NAG field contains HCL of 25 barrels‘per million 
SCF of gas and the Company produced a 
total of 109,000,000 MSGF for the year, 
with a fiscal gas price of $3.00 per MSCF. Compute ‘tax dtiexif fotal profit for 2028 
accounting 
period 
is 
USD$200,000 
and 
the 
Gas 
Tax 
Credit 
claimable 
is 
US$90,000 (out of which US$50,000 has exceeded three years) 
Suggested Solution to illustration H: 
ABC Energies Limited: 
Computation of Gas Tax Credit claimable.in 
2028 accounting period. 
Gas Tax CredjfClaimable 
 . = 
—_ US$90,000 
Note: The’ US$90,000 Gas Tax Credit (GTC) claimable is inclusive of US$50,000, 
unutilised GTC, which has been carried forward for more than three years. 
# 
Computation of Companies Income Tax'due to FIRS 
‘Total profit . 
= 
a 
200,000 
CIT @ 30% 
= 
7 
60,000 
Gas Tax Credit claimable. 
90,000 
Less lapsed Gas Tax Credit 
50,000 
Gas Tax Credit claimable 
40,000 
40,000 
CIT due 
= 
20,00 
Illustration 
|! 
PYT Energies 
Limited 
operates 
a NAG 
field 
and commences 
its 
first Gas 
production 11 years after the commencement date of 28'" February, 2024. The 
company’s 
Gas 
Tax 
Allowance 
claimable 
and 
the 
Assessable 
profit 
are 
US$80,000 and US$200,000 respectively, Compute the Companies Income Tax 
due. 
a“ 
Suggested Solution to illustration I: 
“oy 
Computation of Companies Incame Tax due to FIRS 
US$, 
. 
Assessable profit 
= 
200,000. 
Less: Gas Tax Allowance 
= 
80,000