| Under the MTJA Agreement, the MTJA Act 1990 and relevant
Petroleum Income Tax Acts, the MTJA is empowered to award, with
approval of the Governments, contract for the exploration and
exploitation of petroleum resources in the JDA. The contract has to
be in a form of Production Sharing Contract (PSC) and includes the
following: |
 |
Royalty payable by Contractors to MTJA at 10% of gross
production for remittance to the Governments (5% to each
Government). |
|
Cost Recovery for contractors of up to a maximum 50% of gross production. (with exceptional for Cakerawala field case with cost recovery of 60%) |
|
Profit Split of 50:50 between MTJA and Contractors of
the remaining portion of the gross production after deducting
royalty and cost recovery. |
|
Research Cess to be paid by Contractors to MTJA at
0.5% of their share of cost recovery and profit split. |
|
Export Duty to be paid by Contractors to the
Governments at 10% of profit oil for condensate sold outside
Thailand and Malaysia. |
|
Petroleum Income Tax to be paid to the
Governments:
First 8 years of
production 0% of taxable
income
Next 7 years 10%
of taxable income
Subsequent
years 20%
of taxable income |
|
Contract period: 35 years to be subdivided as
follows:
|
|
Years |
|
|
Oil |
|
Gas |
Exploration
Development
Holding (gas
only)
Production
|
5
5
-
25
|
|
5
5
5
20 |
|
|
Procurement - The Contractors shall purchase or
acquire equipment, facilities, goods, materials, supplies including
services and research facilities, professional or otherwise, from
sources in Malaysia or Thailand where technically and economically
feasible. |
|
Custom & Taxation - Goods,
equipments and materials imported for petroleum operations in the
JDA are accorded duty-exemption.
Incomes derived from
activities/services in the JDA are subject to taxes by both Malaysia
and Thailand under their respective legislations, subject to
reduction by 50% of the tax chargeable by each country. |
| |
|
