Oil & Gas

Petroleum Income Tax — Quarterly Installment Payment

Making a quarterly advance tax payment based on estimated annual petroleum income tax.

Account NameTypeDebit ($)Credit ($)
Income Tax Prepaid / Advance (Asset)Asset (+)10,000,000.00-
Cash / BankAsset (-)-10,000,000.00

💡 Accountant's Note

Petroleum income tax is often paid in quarterly installments based on estimated annual profits. The installments are prepaid assets offset against the annual tax provision. Under- or over-payments are settled at year-end.

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