Ministerial Resolution No. 1535 of 2004 [Executive Bylaws]

Executive Regulations of the Income Tax System

[ARTICLES 43]^[33]

Footnotes

^[33]Deleted by Ministerial Resolution No 2568 dated 5/9/1440H (10/05/2019). Prior to deletion, Article 43 read as follows:
'The following table shows an example for calculating IRR and the applicable natural gas investment tax rate.
Year
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
1. Gross Annual Cash Flows for Natural Gas Investment
(100)
(100)
(100)
(100)
(100)
(100)
(Not included)
(75)
(75)
(75)
(75)
(75)
(75)
(Not included)
120
120
120
120
120
(Not included)
60
60
60
(Not included)
60
60
(Not included)
100
(Not included)
2. Cumulative Annual Cash Flows
(100)
(175)
(55)
5
65
165
(Not included)
3. Realized Internal Rate of Return (IRR)
NA
NA
NA
1.4898%
14.4770%
26.3945%
(Not included)
4. IRR for Natural Gas Investment Tax
NA
NA
NA
1.5%
14.8%
26.4%
(Not included)
5. Applicable Natural Gas Investment Tax Rate in accordance to taxation schedule as per Article 48 of the Income Tax Law
30%
30%
30%
30%
67.95%
85%
(Not included)
6. Natural Gas Investment Tax applied to tax base
30%
30%
30%
30%
30%
67.95%
85%