Preamble, No. The Extractive Industries Revenue Act 2018No. The Extractive Industries Revenue Act 2018

Being an Act to provide for and coordinate various taxes and charges on extractive industries, the regulation of fiscal aspects of extractive industry agreements and for other related matters. [ ] ENACTED by the President and Members of Parliament in this present Parliament assembled. Date of commencement. SIGNED this day of July, 2018. HIS EXCELLENCY JULIUS MAADA BIO, President. LS PART III-PETROLEUM 21. Royalties imposed. 22. Income tax. 23. Separate petroleum operations. 24. Income from petroleum operations. 25. Deductions from petroleum operations. 26. Losses from petroleum operations. 27. Indirect disposal of petroleum rights. 28. Decommissioning funds. 29. Minimum tax. 30. Petroleum resource rent tax imposed. 31. Accumulated net receipts and accumulated net expenditure. 32. Net receipt and net expenditure. 33. Gross receipts. 34. Deductible expenditure. 35. Year of commencement. 36. Transfer of petroleum rights. 37. Decommissioning fund positive balance. 38. Processing. PART IV-EXTRACTIVE INDUSTRYAGREEMENTS 39. Obligation to take account of extractive industry agreements 40. Approved fiscal stability clause 41. No double benefits under extractive industry agreements PART V-ADMINISTRATION 42. Accounts. 43. Assessment of royalties. 44. Assessment of income tax. 45. Instalments of mineral and petroleum resource rent tax. 46. Assessment of mineral and petroleum resource rent tax. 47. General principles of administration. 48. Assistance of officers of public. 49. Prohibition on disposal of minerals and petroleum. 50. Financial forecasts. PART VI- AMENDMENTS AND TRANSITIONAL PROVISIONS 51. Consequential amendments. 52. Transitional mineral resource rent tax. 53. Transitional petroleum resource rent tax. PART VII- MISCELLANEOUS 54. Regulations. SCHEDULES ii No. The Extractive Industries Revenue Act 2018No. The Extractive Industries Revenue Act 2018 "capital allowance expenditure" means expenditure for which capital allowances are available, either under section 25 of this Act or section 39 of the Income Tax Act, 2000; and "written down value" of an asset means the adjusted cost base of the asset less all capital allowances granted with respect to expenditure included in that cost. Part III: Petroleum Resource Rent Tax (Sections 29 and 30) Petroleum Resource Rent Tax Rate 6. (1) The rate of petroleum resource rent tax for a year of assessment shall be calculated by using the following formula: 58 - Income Tax Rate 100 - Income Tax Rate (2) For the purposes of subparagraph (1), the income tax rate shall be the rate specified in paragraph 4 for the year expressed as a whole number. Uplift for Accumulated Net Expenditure 7. (1) The uplift referred to in section 31 shall be applied to accumulated net expenditure for a previous year of assessment in the following manner- (a) in the case of a period of production activities during the current year of assessment - 15% per annum applied to the period; and (b) in any other case - nil. Royalties, taxes and other charges PRINTED AND PUBLISHED BY THE GOVERNMENT PRINTING DEPARTMENT, SIERRA LEONE. Passed in Parliament this day of , in the year of our Lord two thousand and Eighteen. MOHAMED LEBBIE, Ag. Clerk of Parliament. THIS PRINTED IMPRESSION has been carefully compared by me with the Bill which has passed Parliament and found by me to be a true and correct printed copy of the said Bill. MOHAMED LEBBIE, Ag. Clerk of Parliament. No. The Extractive Industries Revenue Act 2018No. The Extractive Industries Revenue Act 2018 “decommissioning fund” means a fund established under section 78 of the Petroleum (Exploration and Production) Act, 2011; “derivative instrument” has the meaning prescribed by regulations and, in the absence of regulations, takes its meaning from generally accepted accounting principles; “development and operation area” means the area covered by an approved development and operation plan; “excluded expenditure” means- (a) income tax, mineral resource rent tax and petroleum resource rent tax; (b) bribes and expenditure incurred in corrupt practices; (c) interest, penalties and fines payable to a government for breach of any law or a political subdivision of a government of any country; (d) expenditure incurred- (i) as a consequence of non-fulfilment of contractual obligations under an extractive industry agreement or other agreement with a government or a political subdivision of a government of any country; or (ii) on insurance, indemnity, guarantee or other security against such nonfulfilment; “mining operations” has the meaning given in section 1 of the Mines and Minerals Act, 2009, but excludes processing of minerals; “National Revenue Authority ” means the National Revenue Authority established under the National Revenue Authority Act, 2002 (Act No 11of 2002); “overriding royalty” means a periodic payment made by a person (other than a dividend) to the extent to which it is directly or indirectly calculated by reference to the profitability, output or natural resources extracted by the person or an associate of the person; “petroleum” has the meaning given in section 1 of the Petroleum (Exploration and Production) Act, 2011; “petroleum operations” has the meaning given in section 1 of the Petroleum (Exploration and Production) Act, 2011 and includes “reconnaissance” as defined in that section, but excludes processing of petroleum; “petroleum licence” has the meaning given in section 1 of the Petroleum (Exploration and Production) Act, 2011; “petroleum right” has the meaning given in section 1 of the Petroleum (Exploration and Production) Act, 2011; “precious stones” has the meaning given in paragraph (b) of the definition of “precious mineral” in section 1 of the Mines and Minerals Act, 2009; “processing” has the meaning prescribed by regulations but excludes activities of a processing nature that are ancillary to mineral operations or petroleum operations; No. The Extractive Industries Revenue Act 2018No. The Extractive Industries Revenue Act 2018 Time for Payment of Royalties