Hydrocarbon Tax (HcT) Compliance

What is Hydrocarbon Tax (HcT)?

HcT is a tax levied on the profits derived from upstream petroleum operations in Nigeria. It applies to companies engaged in the exploration, production, and sale of crude oil and natural gas. The tax rate varies depending on the type of operation and the terrain where it is conducted.

Key Aspects of HcT Compliance:

• Accurate Profit Determination: Calculating HcT liability requires a thorough understanding of the Petroleum Profits Tax Act (PPTA) and its accompanying regulations. This includes accurately determining allowable deductions, capital allowances, and assessable profits. Stransact's experts have in-depth knowledge of the PPTA and can ensure accurate profit determination, minimizing your tax liability.
• Timely Filing and Payment: HcT returns must be filed and payments made within specific deadlines. Failure to meet these deadlines can result in penalties and interest charges. Stransact helps you stay on top of your filing obligations, ensuring timely and accurate submissions to the Federal Inland Revenue Service (FIRS).
• Maintaining Proper Records: Maintaining comprehensive and accurate records is essential for HcT compliance. This includes records of production volumes, sales revenues, operating expenses, and capital expenditure. Stransact can assist with setting up robust record-keeping systems and ensuring your documentation meets regulatory requirements.
• Handling Audits and Investigations: FIRS conducts regular audits to ensure HcT compliance. Stransact's team has extensive experience in handling tax audits and investigations. We can represent your company during audits, provide expert advice, and ensure your rights are protected.
• Keeping Up with Regulatory Changes: The Nigerian tax landscape is constantly evolving, with frequent amendments to tax laws and regulations. Stransact stays abreast of these changes and provides timely updates and guidance to ensure your company remains compliant.

Why Choose Stransact for HcT Compliance?

• Specialized Expertise: Our team possesses deep knowledge and experience in HcT compliance. We understand the unique challenges faced by oil and gas companies and can provide tailored solutions to meet your specific needs.
• Industry Focus: We have a dedicated team focused on serving the oil and gas industry. This allows us to provide specialized advice and support relevant to your business operations.
• Proven Track Record: We have a successful track record of helping oil and gas companies achieve HcT compliance. Our clients trust us to provide accurate, reliable, and timely advice.
• Proactive Approach: We take a proactive approach to HcT compliance, identifying potential issues and providing solutions before they become problems. This helps you minimize risks and avoid costly penalties.
• Client-Centric Approach: We prioritize client satisfaction and build long-term relationships based on trust and mutual understanding.

Stransact's HcT Compliance Services Include:

• • HcT advisory and consulting
• • Preparation and filing of HcT returns
• • Tax planning and optimization
• • Assistance with tax audits and investigations
• • Training and capacity building
• • Keeping you updated on regulatory change

Partner with Stransact and Simplify Your HcT Compliance

HcT compliance is a critical aspect of operating in the Nigerian oil and gas industry. Stransact provides comprehensive solutions to help you navigate this complex tax regime with confidence. Contact us today to learn how we can assist you with:

• • Minimizing your HcT liability
• • Ensuring timely and accurate filing
• • Maintaining proper records
• • Handling audits and investigations
• • Staying ahead of regulatory changes