If PSC exists in Thailand why cant it be used in other area where petroleum resources are available? from ey/Publication/vwLUAssets/2013_global_oil_and_gas_tax_guide/$FILE/EY_Oil_and_Gas_2013.pdf Production sharing contracts PSCs apply only to contractors that operate in the Malaysia–Thailand Joint Development Area (JDA), which is governed under Malaysia–Thailand Joint Authority. Annual profits arising from the exploration and exploitation of any petroleum in the JDA are exempt from income tax for the first eight years of production, subject to income tax at a rate of 10% for the next seven years and thereafter at a rate of 20%. If the contractor is subject to tax in Malaysia, the tax payable is reduced by 50% of the amount of the tax charge. The primary features of PSCs are: • Royalty — 10% of gross production of petroleum • Notional expenditure — 50% of gross production of petroleum is treated as a notional deductible expenditure • Share profit — the remaining portion of gross production of petroleum after deducting royalty and notional expenditure is divided equally between the Joint Authority and the contractor • R&D contribution — 0.5% of both the notional expenditure and the share profit must be paid to the Joint Authority
Posted on: Sun, 23 Mar 2014 13:58:11 +0000
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