Basis of taxation
Taxation on income from petroleum operations is imposed on
petroleum concessionaire companies by the Petroleum Income Tax
Acts (“PITA”). Companies taxed under the PITA are exempt from
taxes and duties on income imposed under the Revenue Code and
under any other laws. The exemption applies so long as the company
pays taxes and duties on income subject to the PITA or on dividends
paid out of income subject to the PITA.