39. Computation of Income of contractor, etc., of an Oil company residing out of Bangladesh

39. Computation of Income of contractor, etc., of an Oil company residing out of Bangladesh.---
      

(1)   Any person who resides out of Bangladesh and carries on business in Bangladesh in any year under an agreement as a contractor to an oil company or as a subcontractor to the contractor to an oil company may exercise an option in writing before the Deputy Commissioner of Taxes for ascertainment, under this rule, of his income, profits and gains from the operation of drilling of oil, geophysical survey, marine seismic  survey,  shallow  water  seismic  survey  and  other  activities  relating  to petroleum operations, in which case his income, profits and gains derived from such operations shall, subject to the provision of this rule, be deemed to be an amount equivalent to ¹[fifteen per cent.] of the gross earrings from such operations:

Provided  that  such  option  shall  be  exercised  before  the  thirtieth  day  of September of the year of assessment in which such person is assessable for the first time in Bangladesh:

Provided further that the option once exercised shall be treated as final and shall be applicable to all assessments thereafter.

(2) For the purposes of this rule,-

(a)   the expression “income, profits and gains” shall mean the net income, profits and gains determined after all expenses and allowances, including depreciation, having already been considered and allowed for the purposes of sections 28, 29 and 30 of the Ordinance;
(b)   the expression “gross earnings” shall include the total value of all fees, moneys, income, compensations or reimbursable costs as stipulated in the agreement with the oil company, or in the agreement   with   the   contractor   to   the oil company, whether in cash or in kind and whether received or not, derived from the operations referred to in sub-rule by the person but excluding the amount of tax, if any, paid or payable on behalf of the said persons, as reduced by the following amounts-

(i)  amount  constituting  compensations  or  reimbursements  exclusively  for expenditures effected by the said person for the purchase of equipment’s for the oil company, which are, in fact, not his responsibility; and
(ii)  amount  constituting  compensations  or  reimbursements  exclusively  for expenditures effected by the said person for the purpose of transporting or moving, drilling and other equipment’s into and out of Bangladesh; ²[and]

(c)    the  expression “oil  company”  shall  mean  a  concern  engaged  in  petroleum operations in Bangladesh for the exploration and development of oil and gas. ³[

[(d) The expression “petroleum operation” shall mean-

(i) activities for the purpose of anticipation, exploration, development or exploitation of petroleum,

(ii) construction, installation or operation of any structure, facilities or installation for the development, exploitation and export of petroleum, or

(iii) decommissioning or removal of any such structures, facilities or installations.]^{Added F. A. 2014}

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1 Subs. for "ten per cent" by S.R.O. No. 216-L/IT/2014, dt: 18-08-2014

2 Omitted by S.R.O. No. 216-L/IT/2014, dt: 18-08-2014

3 Subs. "and" for" and ins. new clusev (d) by S.R.O. No. 216-L/IT/2014, dt: 18-08-2014

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