- 21 -
and 15 percent for Amoco Egypt. Out of its share of production,
EGPC is obligated under the MCA to pay the ARE a royalty of 15
percent of the total quantity of petroleum produced and saved
from the concession. Under Article IV(a) of the MCA, Amoco Egypt
is not required to pay any royalty to the ARE on its share of
production.
The English version of Article IV(f) of the MCA provides in
part:
1. AMOCO [Egypt] shall be subject to Egyptian Income
Tax Laws and shall comply with the requirements of
the A.R.E. Law in particular with respect to
filing returns, assessment of tax, and keeping and
showing of books and records.
* * * * * * *
3. EGPC shall assume, pay and discharge, in the
name and on behalf of AMOCO [Egypt], AMOCO
[Egypt]'s Egyptian Income Tax out of EGPC's
share of the Crude Oil produced and saved and
not used in operations under Article VII.
All taxes paid by EGPC in the name and on
behalf of AMOCO [Egypt] shall be considered
taxable income to AMOCO [Egypt].
4. EGPC shall furnish to AMOCO [Egypt] the proper
official receipts evidencing the payment of AMOCO
[Egypt]'s Egyptian Income Tax for each tax year
within two hundred and ten (210) days following
the commencement of the next ensuing tax year.
Such receipts shall be issued by the proper tax
Authorities and shall state the amount and other
particulars customary for such receipts.
5. As used herein Egyptian Income Tax shall be
inclusive of all income taxes payable in the
A.R.E. (including tax on tax) such as the tax on
income from movable capital and the tax on profits
from commerce and industry and inclusive of taxes
Page: Previous 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 NextLast modified: May 25, 2011