Author: bomuo

See depletion allowance

With the objective to encourage equity investment the local Government sometimes grants tax holidays to investors. For instance, the Government of Burma offers a 3 year tax holiday on income tax. This benefit provides an advantage to companies that invest in that it accelerates the profits from the project. On the other hand, the state must take care from not over-using this mechanism in order to attract investors.

The concept here is to allow a company to carry forward losses from one year in order to offset tax obligations in the following years, usually 5 to 7 years forward until the benefit (past losses) are no longer relevant

A reference to the volume weighted average of realised prices for a month and an oil producing region is a reference to the amount (expressed as an amount of dollars, calculated to the nearest cent, per kilolitre) obtained by dividing the sum of the transaction prices in respect of quantities of excisable crude petroleum oil obtained from that region that are entered for home consumption during the month by the total volume of that oil.