In accordance with the Executive Regulations of the Tax Law, the Head Office overhead charge as an Management fee (for the Branches incorporated) has to be calculated at the maximum allowable ceiling of 3% of onshore revenues of the company after deduction of the following:

1.Value of contracts and subcontracts;
2.Costs of work carried out abroad;
3.Value of supplies imported from abroad and related to the activity of the Branch; and
4.Value of paid reinsurance premiums.