Section 21, No. The Extractive Industries Revenue Act 2018No. The Extractive Industries Revenue Act 2018

(1) The holder of a petroleum right shall pay royalties forpetroleum obtained pursuant to the right. (2) The royalties referred to in subsection (1) shall be calculated by applying the relevant rates set out in paragraph 1 of the Second Schedule to the market value of the petroleum obtained as determined under paragraph 2 of the Second Schedule. (3) The holder of a petroleum right shall pay royalties at the time prescribed in paragraph 3 of the Second Schedule and in accordance with the procedure outlined in Part V. (4) Petroleum that is returned to a natural reservoir shall not be treated as obtained until it is retrieved from the reservoir, with the approval of the Minister responsible for management of petroleum matters,. (5) Royalties may be paid in kind in accordance with section 107 of the Petroleum (Exploration and Production) Act, 2011, provided that no more than fifteen percent of royalties payable under a petroleum right for a year of assessment may be paid in kind unless the Minister responsible for finance agrees. Processing Royalties Imposed No. The Extractive Industries Revenue Act 2018No. The Extractive Industries Revenue Act 2018 (c) the amount of royalties the person should pay; and (d) any other information the Commissioner- General may prescribe. (3) Subject to this section, Part XIII of the Income Tax Act, 2000 shall apply, with any necessary adaptations, to a return filed under subsection (1). (4) A return filed under subsection (1) shall be treated as a self-assessment but– (a) an assessment under section 102 of the Income Tax Act, 2000 may be levied with respect to royalties; and (b) a self-assessment under this section or an assessment under section 102 of the Income Tax Act, 2000 may be amended under section 103 of the Income Tax Act, 2000. 44. The Income Tax Act, 2000 shall apply to the assessment and payment of income tax for mineral and petroleum operations . 45. (1) At the time an extractive industry producer is liable to file an estimate of chargeable income under section 113 of the Income Tax Act 2000, the producer shall also file an estimate of the mineral resource rent tax or petroleum resource rent tax due for the same year of assessment. (2) An estimate filed under subsection (1) shall be in the manner and form prescribed estimating– Assessment of income Instalments of mineral No double benefits un-der Extractive Industry agreements (c) the alteration to the material detriment of the right holder of- (i) royalty, income tax, resource rent tax and withholding tax rates and the rate of charges due on the importation of goods or services; or (ii) the structural features and methodology for calculating the base upon which the charges referred to in sub-paragraph (i) are imposed, including rules and rates as to capital allowances, other cost recovery and carry forward of losses. (2) To the extent a fiscal stability clause in an extractive industry agreement incorporates protection of the type referred to in paragraph (c) of subsection (1), then unless the clause is extended by further agreement the clause ceases to be an approved fiscal stability clause- (a) in the case of a mining agreement, ten years after the conclusion of the agreement; and (b) in the case of a petroleum agreement, thirteen years after the first approval of a development and operation plan within the licence area. (3) In this section, “fiscal stability clause” means a clause in an extractive industry agreement that warrants that the fiscal regime applying to a contracting party shall continue to apply or not be altered to the detriment of the party. 41. (1) The purpose of this section is to prevent a party to an extractive industry agreement from securing both a modified or protected treatment under the agreement for laws relating to revenue while at the same time claiming the benefits of amendments to the revenue law that occurs after conclusion of the agreement. No. The Extractive Industries Revenue Act 2018No. The Extractive Industries Revenue Act 2018 18. (1) Where a person transfers an interest in a mineral right during a year of assessment together with the person’s interest the separate mineral operation conducted under that right, for the purposes of calculating any mineral resource rent tax payable by the transferee, the transferee shall be treated as– (a) having the same accumulated net expenditure for the mineral operation for the year of assessment preceding the transfer as the transferor had ; (b) incurring the same deductible expenditure for the mineral operation during the year of transfer as the transferor did; (c) deriving the same gross receipts for the mineral operation during the year of transfer as the transferor did; and (d) having paid the same amount of instalments under section 45 during the year of transfer as the transferor did. (2) Where a person transfers only a part of an interest in a mineral right, the amounts referred to in subsection (1) shall be apportioned according to the amount of the interest transferred. (3) Where expenditure, receipts or payments are attributed to a transferee under this section, those expenditure, receipts or payments shall no longer be attributed to the transferor. 19 (1) In the circumstances provided for in section 10, the surplus in a rehabilitation fund shall be included in calculating the chargeable income of a person from a separate mineral operation. (2) The inclusion referred to in subsection (1) shall also be included in gross receipts for the purposes of calculating mineral resource rent tax. Transfer of mineral rights Rehabilitation fund positive balance (3) The Minister responsible for finance may by statutory instrument make regulations prescribing the time limit within which the Commissioner-General should conduct the audit and certification. (4) In this section– (a) “relevant deductible expenditure” means expenditure– (i) incurred by the person exclusively on exploration in the relevant licence area and no more than seven years before the date of commencement referred to in subsection (1); (ii) of a type referred to in section 16 (except paragraph (f) of subsection (1) of section 15), presuming that the mining operation in question is that conducted under the exploration licence; (b) “relevant gross receipts” means receipts- (i) derived by a person from exploration in a licence area and not more than seven years before the date of commencement referred to in subsection (1); (ii) of a type referred to in section 15, presuming that the mining operation in question is that conducted under the exploration licence; and (c) “relevant licence area” means that part of a licence area under an exploration licence that was surrendered in favour of the grant of the mining licence with respect to which mining operations referred to in subsection (1) are conducted. No. The Extractive Industries Revenue Act 2018No. The Extractive Industries Revenue Act 2018 (2) Where an extractive industry agreement modifies or protects an old revenue law under section 39, any old revenue law that is modified or protected by the agreement shall continue to apply until the earlier of- (a) the end of the agreement or relevant clauses in the agreement; (b) in the case of an agreement concluded before the commencement of this Act, the first alteration of the modified or protected treatment in the agreement after the commencement of this Act; and (c) the relinquishment by the person of the person’s right to modified and protected treatment. (3) In calculating the revenue liability of the person during the application period referred to in subsection (2) the Commissioner-General may, in his discretion- (a) continue to apply other provisions of the old revenue law referred to in subsection (2) (whether or not the law have been repealed or amended) that the Commissioner-General considers are associated with or that have an application that is consequential upon the provisions mentioned in subsection (2); and (b) disapply any old revenue law that the Commissioner-General considers to - (i) correspond to provisions referred to in paragraph (a); or (ii) have no corresponding provision in the revenue law. (4) In this section, “old revenue law”- (a) means the revenue law as applicable at the time it is modified or protected by an extractive industry agreement (see subsection (2)); and PART V–ADMINISTRATION 42. (1) The holder of a mineral or petroleum right may elect to maintain accounts, be assessed and pay revenue in United States Dollars or other currency as may be prescribed. (2) The election under subsection (1) shall– (a) be collective and for all three purposes referred to in subsection (1); (b) be in writing and filed with the National Revenue Authority at the time of application for the relevant licence; and (c) apply for the duration of the licence. 43. (1) A person who is liable to pay royalties under subsection 3 of section 21 shall file with the Commissioner-General a return of royalties and make payment at the time the royalties should be paid. (2) A return filed under subsection (1) shall be in the manner and form prescribed specifying– (a) the volume of minerals or petroleum liable for royalties; (b) the market value of the minerals or petroleum calculated in accordance with paragraph 2 of the First Schedule or paragraph 2 of the Second Schedule, as the case requires; Accounts Assessment of royalties. No. The Extractive Industries Revenue Act 2018No. The Extractive Industries Revenue Act 2018