(2) For the purpose of computing the taxable income of a chargeable person dealing in oil. (a) Without prejudice to the generality of the provisions of sub-paragraph (b) of Article 6 (1) (i) There shall be included in any deductions under that paragraph costs and expenses of exploration for and development of petroleum or other hydrocarbon properties whether by drilling exploration, producing of other wells or by any means whatsoever incurred after the commencement of trade or business. (ii) there shall be included in any deductions under that paragraph royalties paid on crude petroleum dealt in by that chargeable person equal to one-eighth of the value at the applicable posted price in the Sheikhdom of such crude petroleum. (iii) there shall be excluded from any deductions under that paragraph any sums which are included in credit aggregate. (iv) there shall be excluded from any deduction under that paragraph any payment made to the Ruler in satisfaction of any undertaking in any agreement with the Ruler to make up the Ruler's share of profits on oil produced thereunder to the total of such share therein specified, provided that any sum or the aggregate of any sums received by such chargeable person for the purpose of discharging any such payment shall not form part of the income of that chargeable person. (b) Notwithstanding the provisions of sub-paragraph (c) of Article 6 (1) where any agreement with the Ruler under which such chargeable person is carrying on trade or business in the Sheikhdom prescribes a basis or percentage for the calculation of such an annual allowance as is referred to in the said sub-paragraph (c) then unless such agreement otherwise specifies the annual allowance arrived at on such basis or by reference to such percentage shall be deemed to be the annual allowance for the purpose of the said sub-paragraph (c). (c) Where such oil dealt in has been produced by a producing company which is not a chargeable person the total of the deductions allowable under this Article to such chargeable person in in any income tax year shall be deemed to be increased by the amount of any net operating loss of that producing company for that income tax year calculated on the basis set out in this Decree for computation of the taxable income of a chargeable person dealing inoil as if that producing company were a chargeable person dealing in oil for such income tax year; provided that the resulting increase shall in the case of each such chargeable person dealing in oil be limited to such part of such net operating loss as that producing company certifies as being attributable to the goods or rights sold to such chargeable person in that income tax year and provided further that the total of all such increases so certified by that producing company shall not exceed its net operating loss. Article y Every chargeable person shall keep its records on the basis of the Gregorian Calendar year ending on the 31st day of December, unless the Director, upon the chargeable person's request, has authorised the chargeable person to keep its records on the basis of a different annual accounting period. Article 8 (1) On or before the last day of the third month following the end of every income tax year every chargeable person shall file with the Director at his office in Ras al Khaima a provisional income tax declaration for that income tax year; (ET)
