Section 30, No. The Extractive Industries Revenue Act 2018No. The Extractive Industries Revenue Act 2018

(1) A holder of a petroleum licence that has accumulatednet receipts or a year of assessment from production activities of a separate petroleum operation shall pay petroleum resource rent tax, imposed. (2) The amount of petroleum resource rent tax referred to in subsection (1) shall be calculated by applying the rate specified in paragraph 6 of the Second Schedule to the accumulated net receipts for the year. (3) Subject to section 34, for the purposes of calculating petroleum resource rent tax production activities conducted with respect to the area covered by an approved development and operation area shall be treated as a petroleum operation separate from any other petroleum operation. Minimum Petroleum No. The Extractive Industries Revenue Act 2018No. The Extractive Industries Revenue Act 201832 (e) expenses incurred by the person in the course of reclamation, rehabilitation and closure of the petroleum operation, but only to the extent that funds in the relevant decommissioning fund are not yet available or are inadequate; and (f) any other amounts incurred by the person during the year directly in the course of the operation that may be deducted under the Income Tax Act, 2000. 26. Paragraph (c) of subsection (1)of section 32 and section 32A of the Income Tax Act 2000 shall apply to allowable losses of a person from a separate petroleum operation with the following modifications– (a) tax payable may be reduced to 15 percent of the tax that would be due if losses were not carried forward; (b) a loss may not be carried forward after the latter of the following- (i) the tenth year of assessment from the year of assessment in which the loss was incurred; and (ii) the tenth year of assessment from the year of assessment in which commercial petroleum production commenced; (c) losses shall be used in the order in which they are incurred; and (d) losses from a separate petroleum operation may be deducted only in calculating future chargeable income from that operation and not chargeable income from any other petroleum operation or non-petroleum activities. Losses from Petroleum Operations. 27. (1) Where a company that holds a petroleum right suffers 25 percent or more change in its underlying ownership or control, the company shall be treated as disposing of a proportionate interest in its petroleum right and immediately reacquiring that interest. (2) Where subsection (1) applies, the company shall be treated as– (a) receiving for the disposal, consideration equal to the market value of the proportion of the right treated as disposed of; and (b) incurring in respect of the reacquisition an equal amount. (3) A company that suffers a change of ownership or control referred to in subsection (1) shall notify the Commissioner- General when it files its next tax return under section 97 of the Income Tax Act, 2000. (4) A company that fails to comply with subsection (3)shall be liable for a penalty equal to 30 percent of the market value of the interest in the petroleum right treated as disposed of under subsection (1). (5) This section shall be without prejudice to direct disposals of petroleum rights and the application of section 88 of the Income Tax Act, 2000 to a company that holds a petroleum right. 28. (1) The holder of a decommissioning fund shall be exempted from tax for the following - (a) the receipt of contributions to the fund that are deductible for a petroleum right holder under paragraph (d) of subsection (1) of section 25; and Indirect disposal of rights. Decommissioning funds. No. The Extractive Industries Revenue Act 2018No. The Extractive Industries Revenue Act 2018 35 (4) Petroleum resource rent tax shall be imposed in addition to any other tax or charge, including income tax.