Jueves, 09 Mayo 2013 15:59

New Draft Bill to Impose Industry and Commerce Tax on Oil and Gas Activities

Escrito por 
Valora este artículo
(1 Voto)

New Draft Bill to Impose Industry and Commerce Tax on Oil and Gas Activities
 

By Gabriela Mancero Bucheli


A draft bill was presented to Congress on July 20 2012. It aims to introduce a new tax in
the oil and gas industry. Traditionally, the industry was exempt from tax as such
activities were not included in the list of activities to which the industry and commerce
tax applies. Article 1 of the draft bill, includes not only the activity as taxable within the list
but also proposes an Industry and Commerce Tax rate ranging from Ps6 to Ps20 for
each Ps1,000 of income applicable on a monthly basis.


Activities deemed to fall within the oil and gas sector for taxation purposes are "those
related to the petroleum industry in the areas of petroleum exploration, production,
mixture, refining and all ancillary and supplementary activities".


The taxable basis for calculating industry and commerce tax will correspond to the
petroleum production or extraction value at the well head, measured on a per-barrel
basis. The applicable rate in each particular case shall be determined by the municipal
council at the place where the oil and gas company's production facilities or production
fields are located. Each council will determine industry and commerce tax rates and the
corresponding regulation through accords.


The draft bill indicates that the prices for liquidation of the industry and commerce tax
shall be the same as those used for royalty liquidation.

Visto 84695 veces