Petroleum revenue tax is entirely different from corporation tax in both concept and design. Even though the rate of PRT has been set to zero from 1 January 2016, PRT is still relevant in the sense that if losses are generated, for example on decommissioning, the losses can be carried back, offsetting any profits generated in the periods of zero rate first, and may give rise to repayments of previously paid PRT. The mechanisms for computing PRT profits and losses are therefore still included in this publication.

Before considering the legislation in detail, it is worth listing some of the general principles on which it is based.

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