"Advance payment of tax" as referred to in Article 70 of the Income Tax Law means that the taxpayer pays, on account of their annual tax liability, an amount in advance at the legally prescribed early dates, notwithstanding Article 60(b) and Article 69 of the Income Tax Law, under the following conditions:

1. The taxpayer has generated revenue during the tax year.

2. The advance payment must amount to 25 percent of the taxpayer's tax due, as calculated based on the tax return for the previous tax year, minus the withheld tax for the current year relating to the previous tax year. "Tax liability for the previous year" means the tax determined under the provisions of the Income Tax Law and these Regulations. "Withheld tax" means the tax that has been withheld from the taxpayer on income derived from a source in accordance with Article 68 of the Law.

3. The payment shall be made in three equal instalments on the last day of the sixth, ninth and twelfth months of the tax year.

4. In case of delay in paying an instalment on its due date, a penalty of 1% per month shall be added for every 30 days of delay.

5. Collection and recovery provisions of the Income Tax Law shall apply to late payment of advance payment of tax.

The Department may reduce advance payments in proportion with the drop in income if it is satisfied that the taxpayer's income for the tax year will be at least 30 percent less than the amount of income for the preceding tax year.

The taxpayer must pay the first instalment in full by its specified due date. If the taxpayer wishes to reduce the subsequent instalments, a written request must be submitted to the Authority stating the justification for the request and supported by documentary evidence. The Authority has to make a decision with respect to the request within 30 working days of the date of receipt of such request.

The provisions of this Article are without prejudice to respective effective arrangements with companies engaged in the production of oil and hydrocarbons.