Article 48 - Tax Rate Determination Based on Internal Rate of Return

Article 48 - Tax Rate Determination Based on Internal Rate of Return[27]

Chapter 10 - Natural Gas Investment Tax
[Repealed]

Article 48 - Tax Rate Determination Based on Internal Rate of Return ^[27]

Footnotes

^[27]Repealed by RD No M/70 dated 11/07/1439H (28 March 2018) with effect from 1 January 2018. Prior to deletion, the Article read as follows:
'The natural gas investment tax rate for any taxable year shall be determined on the basis of the internal rate of return on the cumulative annual cash flows of the taxpayer derived from natural gas investment activities. The tax rate applicable to natural gas investment tax base of the taxpayer shall be in accordance with the following table:'

Internal Rate of Return (IRR)	Natural Gas Investment Tax (NGIT)	IRR %	NGIT %	IRR %	NGIT %	IRR %	NGIT %
8.0 or less	30.00	11.0	32.61	14.0	57.50	17.0	82.39
8.1	30.15	11.1	32.87	14.1	58.87	17.1	82.63
8.2	30.17	11.2	33.15	14.2	60.24	17.2	82.85
8.3	30.18	11.3	33.46	14.3	61.59	17.3	83.04
8.4	30.20	11.4	33.80	14.4	62.93	17.4	83.22
8.5	30.22	11.5	34.17	14.5	64.24	17.5	83.39
8.6	30.25	11.6	34.57	14.6	65.51	17.6	83.54
8.7	30.27	11.7	35.01	14.7	66.75	17.7	83.67
8.8	30.30	11.8	35.49	14.8	67.95	17.8	83.80
8.9	30.33	11.9	36.00	14.9	69.10	17.9	83.91
9.0	30.37	12.0	36.56	15.0	70.21	18.0	84.01
9.1	30.41	12.1	37.16	15.1	17.26	18.1	84.10
9.2	30.45	12.2	37.80	15.2	72.27	18.2	84.19
9.3	30.50	12.3	38.50	15.3	73.22	18.3	84.26
9.4	30.55	12.4	39.24	15.4	74.12	18.4	84.33
9.5	30.60	12.5	40.03	15.5	74.97	18.5	84.40
9.6	30.67	12.6	40.88	15.6	75.76	18.6	84.45
9.7	30.74	12.7	41.78	15.7	76.50	18.7	84.50
9.8	30.81	12.8	42.73	15.8	77.20	18.8	84.55
9.9	30.90	12.9	43.74	15.9	77.84	18.9	84.59
10.0	30.99	13	44.79	16.0	78.44	19.0	84.63
10.1	31.09	13.1	45.90	16.1	79.00	19.1	84.67
10.2	31.20	13.2	47.05	16.2	79.51	19.2	84.70
10.3	31.33	13.3	48.25	16.3	79.99	19.3	84.73
10.4	31.46	13.4	49.46	16.4	80.43	19.4	84.75
10.5	31.61	13.5	50.76	16.5	80.83	19.5	84.78
10.6	31.78	13.6	52.07	16.6	81.20	19.6	84.80
10.7	31.96	13.7	53.41	16.7	81.54	19.7	84.82
10.8	32.15	13.8	54.76	16.8	81.85	19.8	84.83
10.9	32.27	13.9	56.13	16.9	82.13	19.9	84.85
						20.0 or higher	85.00

Cumulative annual cash flows shall mean the aggregation of the annual cash flows of the taxpayer subject to the natural gas investment tax for each year starting from the first year of its tax declaration in which the taxpayer was subject to the natural gas investment tax until the year preceding the year in which the tax declaration is due for presentation.

The internal rate of return shall mean the discount rate that causes the net present value of these cumulative annual cash flows (after being discounted to the start of the first year of such cash flows) to equal zero, and then rounded to the nearest tenth of a percent (0.1%).