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Tramont Co (Pilot 12)

This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.

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August 15, 2022 at 5:00 am #663092
mathurya
Participant
- Topics: 11
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Hi,
In working 7 of this question can i know why the additional tax saving of 59 and 137 is subtracted and not added to the NPV? You will be saving tax of 10% by producing in Gamala right, so that will need to be added?
August 15, 2022 at 7:47 am #663105
John Moffat
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- Topics: 57
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It is not a tax saving. It is extra tax payable.
Tax is suffered in Gamala at the rate of 20%. Given that the tax rate in the US is 30% (and there is a double tax treaty) there is an addition 10% tax payable in the US.
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