EX­PLO­RATION SUC­CESS

Business Day - Business Law and Tax Review - - BUSINESS LAW & TAX REVIEW -

A ma­jor, re­gional ser­vices hub for the oil and gas in­dus­try; and

As the ideal lo­ca­tion from which for­eign oil and gas com­pa­nies can ser­vice their oper­a­tions in Africa, in par­tic­u­lar sub-Sa­ha­ran Africa.

One of the ways to en­cour­age oil and gas in­vest­ment into SA, is by pro­vid­ing a favourable tax regime for these com­pa­nies. While the Tenth Sched­ule is rel­a­tively new and the ef­fi­cacy of its prac­ti­cal ap­pli­ca­tion should still be tested in many ways, var­i­ous pos­i­tive tax amend­ments have been ef­fected to it over the past few years to en­sure that all oil and gas com­pa­nies do ac­tu­ally ben­e­fit in the man­ner in­tended by the tax rules. The sched­ule cur­rently of­fers sig­nif­i­cant pref­er­en­tial tax treat­ments to oil and gas com­pa­nies, but there are also var­i­ous is­sues which taxpayers should be aware of to avoid tax pit­falls.

This sched­ule, which aims to act as

Pic­ture: THINKSTOCK

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