Page 284 - Records of Bahrain (7) (ii)_Neat

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674 Records of Bahrain

(lv) Processing or converting, in Bahrain, into rinjahofl Jr
proffvgiq Tor other perWQr>» qrvde pfrrgTyum
seal EKUt8X3Xft
or other natural hydrocarbon#«IrrffgCC ? lvp or where
Pt\^duq»j1m5 axVraotcd from thf Kttvm.-
(f) the term '’property* meens any tangible or In ntnngiblo asset
the ooat of wbioh is chargeable to capital accountj
U) the term "around In Bahrain” Include® all the subsoil within
the JurJ ®dlotion oC Bahrain, including that under the setei
(h) the term "selling” Includes exobanging or bartering, and the
term ''acid*' lnoludea exchanged or bartered.
Article 3. - In the computation of lnoome the following Items, where­
soever lnourred, shall be allowed as deductions i
(a) The reasonable coot to the taxpayer of crude petroleum or other
natural hydro carbons or finished of sc»»l finished Products
thereof sold in the trades or builnteaes apeolricd In Article
?(e)U), (ll), and (ClU~In the taxable year, but produoed,
extracted, :.r manufactured previous to the taxable year.
(b) Reasonable oxpensea which acorue against or are paid by the tax­
payer (exclusive of the amounts mentioned in Article 1 which
aooruo or are paid to the Ruler ;f Bahrain, of amount# which are
oapltal expenditures, and of amounts whloh are to be Included In
ooet under paragraph (a) or this Article) In the taxable year in
connection with the carrying on of the trades or businesses
opeoiflsd in Article 2(e), including, wTtKouE in any way limiting
the generality of the foregoing, adalnlstrat1ve, overhead, and
establishment expenses; contributions j and remunerations or reward#
for services rendered by others, whether they accrue or are paid
directly to the peraon rendering the servloeo or to other persons
in reapeot or lnaurancs, pension, or other plana aatabllahed for
the benefit of the persons rendering the services. Cost of
exploration, drilling, and development In respect of petroleum
or other hydrocarbon properties In Bahrain which the taxpayer does
not deduot under this paragraph or under paragraph (a) of this
Artlole ehall be treated ee oapltal expenditures coming under the
provisions of paragraph (o) of this Artlole.
(o) Reasonable amounts for the depreciation, obaoleooenoe, exhaustion,
and depletion during the taxable year of properties used by the
taxpayer In the trades or bmincfiee epeclfled in Artlele 2(e)|
suoh amounts when deducted during the estimated remaining years or
useful life or the properties, ehall not exeeed their value at
defined in Article A. The amounts dedusted in respect of any
property u.ffl In U\f prpdwoUoni »n<3 »»tr»otlon fro« IB
.igTOicCTMagMnr:v:i.w f either equal amounts during eaan
or tn# years or the estimated useful life of the property, or
amounts representing in each taxable year that fraction or the
value of the property as defined in Artlole a whloh equal# tha
fraction which the crude petroleum produced and extracted from
the ground in Bahrain In the taxable year represents of tha
••Hasted total potential future production and extraction of orud

a.