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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2 ak | is ‘ “e fs NOTE: iti se f fe (1) What is relevant in the determination -of-theQualifying Expenditure ‘on- Plant and Machinery for the purpose of GUIA is thé time the/expenditdre. was incurred or asset at <3 purchased and not when payment.was rhade. i « bane « teetie . & (2) All Qualifying Capital Expenditures incurredion Plant and Equifment.on a Gas Utilization Project prior to the éffective date of fhielGyla incentive doynot qualify for the Allowance. ° rn. (3) Payments made from inception to 12" March 2024 were for expenditdres incurred prior to the commencement of the incentive. The payment of. 21, January 2025 is for expenditure incurred in 2024 after the commencement datéi6Fthe incentive. =A gat ar rr 4, eked 11.0 Commencement Date The commencement date of this guidance is 28th of February 2024. Note: An eligible company shall only claim the gas utilization investment allowance upon the expiration of the tax-free period granted under section 39(1) of the Companies Income Tax Act. 12.0 Definition of:terms: “Midstream Gas Qperations” *) Means activities downstféam of the méastrement points of petroleum mining leases, whether or not related to the petroleum mining lease, witti?respect to the construction and operation of natural gas transport or transmission pipelines;..including the related compressor stations, construction and operations of facilities to compress, transport and deliver compressed natural gas (CNG); construction and operations of gas, processing facilities and central processing facilities, producing ethane, propane, butane.artd natural gas liquids and marketable natural gas; construction and operation of underground or above ground facilities for the storage of natural gas, ethane extraction plants, construction and operation of gas to liquids (GTL) plants, petrochemical, construction and operation of LNG plants, and related LNG terminals as well as storage and transport of LNG, acquisition, operation or chartering of LNG tankers for coastal and marine transportation, purchase and sale, trading, bartering, aggregating and marketing of natural gas transported by pipelines, compressed natural gas, LNG, methane, ethane, propane, butane, natural gas liquids and liquids from GTL plants with respect to wholesale customers and gas distributors and related administration and overhead ; “New project” means gas project that was initiated and executed after the commencement date of the Executive Order 40; “On-going project” means gas project currently under construction or in progress, prior.fa the commencement date of the Executive Order 40. . ‘
RegulationsPDF20242024-048