PROFIT BEFORE TAX
Main Business Activities
- Upstream and Integrated Gas
In 2013, Shell entered into a joint venture with South Gas Company called Basrah Gas Company (BGC). BGC focuses on processing gas that would otherwise have been flared, supplying this to the government of Iraq for power generation. The Shell share of results from BGC, being an equity-accounted investment, is included in the country report for the Netherlands - the country of the shareholder of BGC.
Country Financial Analysis
The statutory corporate income tax rate in Iraq is 15%.
The loss before tax incurred in 2019 relates primarily to costs incurred in Iraq which are not recoverable from BGC. The Majnoon Development and Production Services Contract was terminated in June 2018, which contributed to the fall in revenues and profits.
Taxes are paid in arrears. The tax paid in 2019 relates to profits arising in 2018.