RE:RE:Ouch !!
Infoonthe 75%
Tax expense incurred within Thailand Joint Venture, net to Pan Orient 50.01% equity interest
Petroleum income tax in Thailand Joint Venture is 50% of taxable income which is calculated based on adjusted funds flow from operations less capital expenditures (deductible at varying rates), special remuneratory benefit tax (“SRB”), and other permitted deductions. Current income tax expense was $5.1 million and $15.4 million for the three months and year ended December 31, 2021 compared to $2.5 million and $5.0 million during the same periods of 2020. Current income tax increased due to higher taxable income resulted from higher oils sales and realized prices in 2021.
Thailand SRB is a tax at sliding scale rates of 0 - 75% applied on a concession-by-concession basis to petroleum profits as defined in Thai tax legislation which includes deductions for expenses and capital spent. The rate is principally determined by revenue for the
concession (production and pricing) but is subject to other adjustments such as changes in Thailand's consumer and wholesale price indices and cumulative meters drilled on the concession. There was no SRB tax paid since inception to date for Concessions L53
and because of the numerous factors involved in the SRB calculation, it is uncertain if SRB will be payable on the concession.
Given the recent high price of crude oil, there is an increased chance of SRB tax in 2022
https://www.sedar.com/GetFile.do?lang=EN&docClass=7&issuerNo=00009731&issuerType=03&projectNo=03351748&docId=5156274