Section 9

any rents (other than yearly payments deductible in ascertaining the chargeable tax under section 14) incurred by the company in respect of land and buildings occupied for its petroleum operations;

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B.L.R.O. 6/2022 21

any compensation incurred for disturbance of surface rights or for any other disturbance or for all damage or injury to the property and rights of other parties;

any expense incurred for repair of premises, plant, machinery or fixtures employed for the purpose of carrying on petroleum operations or for the renewal, repair or alteration of any implement, utensil or article so employed;

debts due to the company and proved to the satisfaction of the Collector to have become bad or doubtful during the period for which the chargeable profits are being ascertained, notwithstanding that the bad or doubtful debts were due and payable prior to the commencement of that period:

Provided that —

all sums recovered during that period on account of amounts previously deducted in respect of bad or doubtful debts, either under this Act or under the

Income Tax Act (Chapter 35), shall for the purposes of this Act be treated as chargeable profits for that period;

included as a receipt from the carrying on of petroleum operations in the chargeable profits of the year within which they were incurred; or

advances made in the normal course of carrying on petroleum operations;

any expense incurred in connection with the drilling of appraisal wells and development wells but excluding any expenditure which is qualifying expenditure for the purpose of the Schedule to this Act;

any contribution to a pension, provident or other society or fund which has already been approved under the Income Tax Act

(Chapter 35) or which may be approved from time to time by the

Collector subject to such conditions as he may impose;

Income Tax (Petroleum)

sums allowable as deductions in respect of capital expenditure in accordance with the provisions of the Schedule to this

Act;

any sum contractually due by the company by way of annuity, royalty or other such recurring payment by reason of any agreement referred to in section 12(1);

such other deductions as may be prescribed.

a fair proportionate share of any overhead costs incurred by the company partly for the purposes of petroleum operations carried on by the company and partly for other purposes;

the amount of any loss incurred by that company during any previous basis period which if it had been a profit would have been a chargeable profit for the purposes of section 8:

Provided that —

in no circumstances shall the aggregate deduction from chargeable profits in respect of any such loss exceed the amount of such loss; and

the amount or value, not exceeding one-sixth of the chargeable profits remaining after the deductions authorised by paragraphs (a) and (b) have been made, of gifts made by the company in that basis period to any institution of a public character in Brunei Darussalam approved for this purpose by the Minister:

Provided that the Minister may at any time in his discretion withdraw such approval.

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In this paragraph, “institution of a public character” means —

any hospital which is not operated or conducted for profit;