DEDUCTIBLE EXPENSES FOR THE CALCULATION OF THE TAX ON INDUSTRIAL AND COMMERCIAL PROFITS Sample Clauses

DEDUCTIBLE EXPENSES FOR THE CALCULATION OF THE TAX ON INDUSTRIAL AND COMMERCIAL PROFITS. 4.1 Deductible expenses Pursuant to Article 70 of the Crude Hydrocarbons Code, subject to the limits set out in this Accounting Procedure and excluding the non-deductible expenses listed in Title VI of the Crude Hydrocarbons Code and those expenses that are not deductible from the Petroleum Costs listed in article 2.5 above of this Appendix, the deductible expenses for the calculation of the tax on industrial and commercial profits shall consist in the following items: • the Exploitation Petroleum Costs, as defined in accordance with the provisions of this Accounting Procedure; • general expenses, pursuant to the provisions of article 2.4 above of this Appendix; • depreciation on the fixed assets comprising the Development Petroleum Costs, pursuant to the provisions of article 4.2 below; • interest, bank charges and financial fees, pursuant to the provisions of article 2.3.9 above; • losses of equipment or materials resulting from destruction or damage, unrecoverable debts and compensation paid to third parties for losses (save where such losses have been caused by the actions or failure to act of the Contractor); • reasonable and justified provisions paid against specifically defined losses or expenses and made likely by current events; • the unaudited amount of losses relating to previous years up to a limit of five (5) years following the year in which the losses were made. 4.2 Depreciation of fixed assets Fixed assets constructed by the Contractor and required for the Petroleum Operations shall be depreciated using the straight-line depreciation method. The minimum term of depreciation of the fixed assets shall be: • ten (10) Calendar Years for fixed assets comprising the pipeline for the transportation of Hydrocarbons;