The Algeria EEC Law No.13-01 2013 Royalty Tax fiscal regime has a several tax items, comprising signature bonus, annual training fees, royalties on gross revenue for conventional hydrocarbons in zones A-D/ unconventional hydrocarbons, petroleum income tax based on an R-factor and production rates, additional profits tax for conventional hydrocarbons in zones A-D/unconventional hydrocarbons, surface fees for conventional hydrocarbons in zones A-D/unconventional hydrocarbons, water injection tax and finally state participation. Show description

The Angola 2008 Offshore production sharing agreement (PSA) is the most common type of contract between oil companies and the Angolan state concessionaire, under which the contracting group bears all expenditures for exploration and production. The state concessionaire is a department of Sonangol (the Angolan national oil company). The profit sharing is based on post-exploration and appraisal IRR. In addition the tax items include signature bonus, discovery bonus, production bonuses, various fees, cost recovery, profit tax and state participation. Show description

The Argentina 2017 Royalty Tax model has a single income tax item, namely corporate income tax at 35% of taxable income. OPEX and CAPEX are depreciated on the basis of Unit of Production, while all other taxes can be expensed. Unrecovered costs can be carried forward up to 5 years. Other taxes (which can all be expensed) are annual surface fees, signature bonus, VAT on CAPEX, turnover tax on gross revenue, import duty on CAPEX and royalty. The royalty may be adjusted at a certain point in time of the project. Show description

The Australia 2012 PRRT Royalty Tax model has a royalty on total revenue combined with two income taxes. The first income tax is 40% PRRT – Production Resource Rent Tax – with expensing of exploration & appraisal CAPEX including annual uplift of carry forward losses plus transferred exploration expenditures. Development CAPEX is written down over the project, and also has uplift of losses carried forward and transferred general CAPEX. OPEX and royalties are also expensed. The second income tax item is 30% corporate income tax with deductions as for PRRT but excluding annual uplift and transfer of expenditures, however including the PRRT expenditure. Show description

CCS projects with CO2 injectors, pipelines and CO2 capture facilities and operational costs are modelled with Corporate Income Tax. In addition, hydrocarbon projects and CCS with possible enhancement of oil and gas production (CCUS) are modelled using the Australia 2012 PRRT Royalty Tax fiscal terms. This includes a royalty on total revenue combined with two income taxes. The first income tax is 40% PRRT – Production Resource Rent Tax – with expensing of exploration & appraisal CAPEX including annual uplift of carry forward losses plus transferred exploration expenditures. Development CAPEX is written down over the project, and also has uplift of losses carried forward and transferred general CAPEX. OPEX and royalties are also expensed. The second income tax item is 30% corporate income tax with deductions as for PRRT but excluding annual uplift and transfer of expenditures, however including the PRRT expenditure. CO2 taxation and quotas can also be modelled. Show description

The Brazil 2017 model is a Royalty Tax model with a royalty rate between 5% to 10%; Production Taxes such as PIS, COFINS, ICMS and R&D (when Special Participation applies); Indirect Taxes for Opex and Capex, where REPETRO tax incentive apply in certain cases; Special Withholding Tax rates for lease and service agreements according to law 13.586/2017. Licensees must pay rental fees per square kilometer of the concession, and Fees vary according to the block location, and between the current phase (Exploration, Development, Production). In onshore areas, there is a Landowner fee that can vary between 0.2% and 1% of the gross production. A Special Participation Tax will apply in case of high production/high profits, and it is calculated based on the net revenue (gross revenue minus deductibles). The concession area rates are progressive and change according to the production volume, the number of years of production, the location of the field, the water depth, and the year of production (Decree No. 2.705 of 1998). Income Tax obligation with a combined rate (Basic, Surtax, Social Contribution) of 34%, where exploration and discovery-related activities must immediately be deducted from taxable income, and development activities may take an accelerated depreciation using the units of production method multiplied by 2.5. Indefinite loss carry forward, where up to 30% of the losses can be used every quarterly, and carry back is not allowed. This regime includes a Signature Bonus that must be paid to the ANP. Show description

The Brazil 2018 Pre-Salt PSC is a production sharing contract where the split is based on the Brent price and the average productivity per well per field. The "base" government share is a biddable item, in which a minimum percentage is defined by the ANP. This type of fiscal regime includes royalties of 15%, Production Taxes such as PIS, COFINS, ICMS and R&D, Cost Recovery for Opex, Capex and R&D are expensed. Indirect Taxes for Opex and Capex, where "REPETRO" tax incentive apply in certain cases. Special Withholding Tax rates for lease and service agreements, according to law 13.586/2017. Income Tax obligation with a combined rate (Basic, Surtax, Social Contribution) of 34%, where exploration and discovery related activities must immediately be deducted from taxable income, and development activities may take an accelerated depreciation using the units of production method multiplied by 2.5. Indefinite loss carry forward, where up to 30% of the losses can be used every quarterly, and carry back is not allowed. This regime includes a Signature Bonus that must be paid to the ANP. Show description

The Canada 2017 Offshore Newfoundland Labrador Royalty Tax model applies for Oil and Gas projects. Both Basic (fixed) and Net (sliding scale) royalty rates for Oil are driven by revenue over cost index (R-Factor). Gas royalty rates change through a smooth progression in between a minimum and a maximum tier bandwidth. Gas basic royalties are driven by the netback value of production, while net royalties are linked to the R-Factor. The area rental fee is modeled for the exploration and production stage. Carbon Tax is calculated by applying the rate in USD/tons over the quantity in tons of carbon emissions, which are calculated by applying a carbon emissions rate over a gas fraction used for power generation. Federal and Provincial income taxes are modeled taking into count deductibles such as Capex depreciation (Annual Declining Basis), Opex, and Royalties. Companies can carry back losses for 3 years and carry them forward for 20 years. Show description

The China 2011 Conventional production sharing contract (PSC) model executed by the IOC together with one of the national oil companies. The production sharing contract includes a resource tax on gross revenue, VAT on gross revenue plus levies on the VAT, liquid production-based profit sharing with sliding scale and cost recovery, signature bonus, abandonment fund, special oil gain levy, corporate income tax and state participation (typically 51%). Show description

The Colombia 2017 Royalty Tax model has royalties calculated on a direct sliding scale based on monthly averaged production rate (BOE/day), with discount for Gas and heavy oil for different types of reservoirs: 1. Light Crude (Base), 2.Gas Offshore < 1000 ft (20% Disc. Over Base), 3.Heavy Crude < 15 API (25% Disc. Over Base), 4.Gas Offshore < 1000 ft (20% Disc. Over Base), 5.Gas Offshore > 1000 ft (40% Disc. Over Base). Model default scenarios: 1 and 2 It also has different fees and economic rights such as Subsurface Fee (Tax deductible), Technology Transfer, ANH Payment (Tax deductible) and ANH Participation. Corporate income tax with deprecation of E&A DRILLEX on either linear or UOP, development DRILLEX and development CAPEX on UOP Basis; OPEX, royalties, ANH Payment, Subsurface Fee and decommissioning are expensed. There are Tax benefits in the form of VAT Tax refund for Offshore investments, CERT refund on investments related to the generation of new proved reserves or recoverable volumes. Finally, there is a VAT Credit for Income Tax, for those investments related to the formation, construction, or acquisition of fixed assets. Show description

The Denmark 2014 Royalty Tax model has 2 income tax items, corporate income tax and hydrocarbon tax. For both income taxes, exploration and appraisal CAPEX are depreciated linearly over 5 years, development CAPEX is depreciated on declining basis with 15% p.a., and OPEX is expensed. Unused deductions can be carried forward until the end of contract. Abandonment costs are carried back. For hydrocarbon tax, CIT is also deductible and there is an uplift on development CAPEX of 30% linearly over 6 years. In 2017, new deductions and depreciations were introduced for the hydrocarbon tax item for the period 2017-2025 on the condition that the oil price is below 75 USD/bbl. The state usually participates via Nordsøfonden with 20% in all exploration and production licenses. The state participation is however set to 0 as default, but can be changed when required. Show description

The Denmark 2014 Royalty Tax and CO2 Tax model has 2 income tax items, corporate income tax and hydrocarbon tax, and CO2 tax. For both income taxes, exploration and appraisal CAPEX are depreciated linearly over 5 years, development CAPEX is depreciated on declining basis with 15% p.a., and OPEX is expensed. Unused deductions can be carried forward until the end of contract. Abandonment costs are carried back. For hydrocarbon tax, CIT is also deductible and there is an uplift on development CAPEX of 30% linearly over 6 years. In 2017, new deductions and depreciations were introduced for the hydrocarbon tax item for the period 2017-2025 on the condition that the oil price is below 75 USD/bbl. The state usually participates via Nordsøfonden with 20% in all exploration and production licenses. The state participation is however set to 0 as default, but can be changed when required. Show description

CCS projects with CO2 injectors, pipelines and CO2 capture facilities and operational costs are modelled with Corporate Income Tax. In addition, hydrocarbon projects and CCS with possible enhancement of oil and gas production (CCUS) are modelled using the Denmark 2014 Royalty Tax fiscal terms. This model has 2 income tax items, corporate income tax and hydrocarbon tax, and CO2 tax and CO2 quotas. For both income taxes, exploration and appraisal CAPEX are depreciated linearly over 5 years, development CAPEX is depreciated on declining basis with 15% p.a., and OPEX is expensed. Unused deductions can be carried forward until the end of contract. Abandonment costs are carried back. For hydrocarbon tax, CIT is also deductible and there is an uplift on development CAPEX of 30% linearly over 6 years. In 2017, new deductions and depreciations were introduced for the hydrocarbon tax item for the period 2017-2025 on the condition that the oil price is below 75 USD/bbl. The state usually participates via Nordsøfonden with 20% in all exploration and production licenses. The state participation is however set to 0 as default, but can be changed when required. Show description

The Ecuador Service Agreement model represents a Technical Service where the contractor carries out exploration and exploitation of hydrocarbons services utilizing its own resources, technology, etc., at its own risk. The state compensates the contractor with an estimated tariff for every barrel that can be extracted. The margin of sovereignty, transport tariff, commercialization tariff, Law 10, and Law 40 tariffs are deducted from the projects revenue to quantify the states available cash flow which is used for contractors payment (carry forward of payments is available), which is calculated over the projects production. The contractor assumes the income tax and labor participation tax according to the available taxable income and applying the corresponding deductions: opex (expense), abandonment fund, research tax, and capital depreciation which can be either in straight line or units of production. Up to 5 years are permitted for carrying forward losses, and utilization is limited to 25% of taxable income every year. Show description

The Egypt 2018 EGPC EGAS production sharing agreement (PSA) applies a combination of both an oil price and a production sharing mechanism, with separate profit sharing for gas and hydrocarbon liquids. Additional tax items include cost recovery, training fees, signature bonus, retainment bonus, development lease bonus, assignment bonus, production bonuses and state participation with carry of the state until 1st oil/gas. Show description

The Egypt 2019 GANOPE production sharing agreement (PSA) applies a combination of both an oil price and a production sharing mechanism, with separate profit sharing for gas and hydrocarbon liquids. Additional tax items include cost recovery, training fees, signature bonus, retainment bonus, development lease bonus, assignment bonus, production bonuses and state participation with carry of the state until 1st oil/gas. Show description

The Equatorial Guinea 2006 PSC is a classical production sharing contract with royalties, signature bonus, discovery bonus, production bonuses, surface rental, cost recovery, profit split on a sliding scale using oil equivalent production rates, corporate income tax and carry of the state participation until 1st oil/gas. Show description

The Ghana 2002 GNPC fiscal regime is a Royalty Tax type fiscal regime for E&P contracts comprising separate royalties on hydrocarbon phases, petroleum income tax, additional oil entitlement for different tranches of earnings and carry of the state participation until 1st oil/gas. Show description

The Guyana 2016 PSC is a classical production sharing contract with royalties (direct flat-rate), signature bonus, surface rental, fees, cost recovery for OPEX, CAPEX, and specific fees as expensed, and ABEX using Units of Production (UOP). Profit Oil & Gas split based on total production per day. Tax obligations (income tax, corporation tax, and property tax) shall be satisfied through the Governments profit share. Show description

The India 2018 RSC Deep Water Offshore is a new revenue sharing contract for onshore E&P activities. The model has particular deep water tax holidays and royalty rates for oil and gas separately. The model also comprises goods and services tax for DRILLEX, CAPEX and OPEX, revenue sharing by interpolation between the lower revenue point and the higher revenue point, and finally corporate income tax including surcharge and education levy. Show description

The India 2018 RSC Onshore is a new revenue sharing contract for onshore E&P activities. The model has particular onshore tax holidays and royalty rates for oil and gas separately. The model also comprises goods and services tax for DRILLEX, CAPEX and OPEX, revenue sharing by interpolation between the lower revenue point and the higher revenue point, and finally corporate income tax including surcharge and education levy. Show description

The India 2018 RSC Shallow Offshore is a new revenue sharing contract for onshore E&P activities. The model has particular shallow offshore tax holidays and royalty rates for oil and gas separately. The model also comprises goods and services tax for DRILLEX, CAPEX and OPEX, revenue sharing by interpolation between the lower revenue point and the higher revenue point, and finally corporate income tax including surcharge and education levy. Show description

The India 2018 RSC Ultra-Deep Water Offshore is a new revenue sharing contract for onshore E&P activities. The model has particular ultra-deep water tax holidays and royalty rates for oil and gas separately. The model also comprises goods and services tax for DRILLEX, CAPEX and OPEX, revenue sharing by interpolation between the lower revenue point and the higher revenue point, and finally corporate income tax including surcharge and education levy. Show description

The India 2021 Discovered Small Field RSC is a revenue sharing contract for discovered small fields. The model has particular tax holidays and royalty rates for oil and gas separately, depending on whether the area is onshore/shallow water/deepwater. The model also comprises goods and services tax for DRILLEX, CAPEX and OPEX, revenue sharing by interpolation between the lower revenue point and the higher revenue point, and corporate income tax including surcharge and education levy. Finally, a signature bonus can also be specified. Show description

The Indonesia 2008 Cost Recovery Production Sharing Contract model applies to conventional oil and gas projects. Initially a First Tranche Petroleum (FTP) specified as a % of production is reserved for profit split before calculation of profit split after cost recovery is done. All production after FTP can be used for cost recovery, and tangible CAPEX is recovered on declining balance basis while OPEX and intangible CAPEX is expensed. An Investment Credit (uplift) applies on tangible CAPEX. Domestic Market Obligation requires the contractor to supply a fraction of the produced hydrocarbons to the local market, which is priced with the Indonesian Reference Price (a fraction of the export price). Some contracts allow the contractor to apply the export price for domestic supply, for a specific period, typically five years. The Corporate Income Tax rate is 30% (if 20% branch remittance tax is included then the (effective) tax rate should be specified as 44%). Depreciation and deductibles are calculated as for cost recovery for profit split. Losses can be carried forward to the end of the contract. Signature, discovery and production bonusses also apply but are not recoverable nor deductible. The State may acquire up to 10% and will then reimburse its share of costs. Show description

The Indonesia 2008 Cost Recovery Production Sharing Contract model applies to conventional oil and gas projects. Initially a First Tranche Petroleum (FTP) specified as a % of production is reserved for profit split before calculation of profit split after cost recovery is done. All production after FTP can be used for cost recovery, and tangible CAPEX is recovered on declining balance basis while OPEX and intangible CAPEX is expensed. An Investment Credit (uplift) applies on tangible CAPEX. Domestic Market Obligation requires the contractor to supply a fraction of the produced hydrocarbons to the local market, which is priced with the Indonesian Reference Price (a fraction of the export price). Some contracts allow the contractor to apply the export price for domestic supply, for a specific period, typically five years. The Corporate Income Tax rate is 30% (if 20% branch remittance tax is included then the (effective) tax rate should be specified as 44%). Depreciation and deductibles are calculated as for cost recovery for profit split. Losses can be carried forward to the end of the contract. Signature, discovery and production bonusses also apply but are not recoverable nor deductible. The State may acquire up to 10% and will then reimburse its share of costs. As an alternative to oil and gas, production of E-fuels including Hydrogen, Methanol and Ammonia can be modelled. In this case, cost recovery is not modelled. In addition, CO2 tax and CO2 injectors with pipelines and CO2 capture and operational costs can modelled modelled including possible enhancement of oil and gas production. Show description

The Indonesia Gross Split Production Sharing Model applies to Oil and Gas projects. Gross production is split between the Contractor and the State according to a defined fraction, that can vary based on several factors (Contr Base Split + Contr Variable Split + Contr Progressive Split + Contr Adjustment Split). Domestic Market Obligation requires the contractor to supply a fraction of the produced hydrocarbons to the local market, which is priced with the Indonesian Reference Price (a fraction of the export price). Some contracts allow the contractor to apply the export price for domestic supply, for a specific period, typically five years. The Corporate Income Tax is 25% (if 20% branch remittance tax is included then the effective rate is 40%). Declining balance depreciation method based on asset group as capital allowances. Up 10 years are permitted for carrying forward losses. Show description

CCS projects with CO2 injectors, pipelines and CO2 capture facilties and operational costs are modelled with Corporate Income Tax. In addition, hydrocarbon projects and CCS with possible enhancement of oil and gas production (CCUS) are modelled using the Indonesia Gross Split Production Sharing Contract Model which applies to both Oil and Gas projects. Gross production is split between the Contractor and the State according to a defined fraction, that can vary based on several factors (Contr Base Split + Contr Variable Split + Contr Progressive Split + Contr Adjustment Split). Domestic Market Obligation requires the contractor to supply a fraction of the produced hydrocarbons to the local market, which is priced with the Indonesian Reference Price (a fraction of the export price). Some contracts allow the contractor to apply the export price for domestic supply, for a specific period, typically five years. The Corporate Income Tax is 25% (if 20% branch remittance tax is included then the effective rate is 40%). Declining balance depreciation method based on asset group as capital allowances. Up 10 years are permitted for carrying forward losses. CO2 tax and quotas are also modelled. Show description

The Iraq Kurdistan 2007 PSC is a production sharing contract model for engaging IOCs in upstream E&P activities with the Kurdistan Regional Government. The main tax items are royalties, signature bonus, capacity building bonus, various annual fees, profit sharing and cost recovery, corporate income tax, production bonuses, decommissioning fund and state participation. Show description

The Ireland 2014 Royalty Tax fiscal regime has 2 income tax items - Petroleum production tax (PPT) and Corporate income tax (CIT). The PPT rate is based on the R-factor which is calculated as cumulated gross revenue (pre-CIT) less PPT and then divided by cumulated costs. This is converted into a PPT rate between 5% and 40% of gross revenue less deductibles. CIT is then calculated as 25% of gross revenue less deductibles. Deductibles are comprised of CAPEX and OPEX that are expensed, ABEX that can be carried back 3 years and interest on development CAPEX. PPT is deductible for CIT. There is ring fence around the contract area, and unrecovered costs can be carried forward to the end of contract. Show description

The Kazakhstan 2009 Mineral Extraction Tax (MET) model is a Royalty Tax type fiscal regime. It applies to almost all existing and new exploration and production contracts since 1st January 2009, but not production sharing agreements that became effective prior to 1 January 2009 and contracts specifically approved by the President of Kazakhstan. The MET fiscal regime consists of a combination of corporate income tax, rent tax on export, bonuses and royalty-type taxation. Oil and gas production activities are ring-fenced from downstream activities and from each other on a contract by contract basis. Show description

The Kenya 2008 PSC is a production sharing contract between a contracting group and the Kenyan national oil company NOCK. Separate split is performed for oil and gas and based on the production rates. In addition the tax items include signature bonus, training fees, abandonment fund, cost recovery, windfall profit tax and state participation. Show description

The Malaysia Shallow Water EPT PSC model represents a production sharing agreement where the contractor pays 10% of gross production (“Cash Payment”) to the Federal and State Government. The cost recovery limit is fixed at 70% of the gross revenue, and the remaining production after cash payment and cost recovery represents a profit that is shared between Petronas and the contractor based on the “self-adjusted profit-sharing mechanism. Export duty is levied on Profit Oil and unused cost recovery when oil is exported, and the Research Tax rate is applied over the contractor net revenue. Income Tax Rate of 38%, and capital/ expenses allowances, where an additional allowance of 10% and 20% is permitted for other exploration costs (different from drilling) and other development costs (different from drilling and platforms) respectively. Unlimited carry forward is permitted. Show description

The Mexico 2017 RT is a production license contract with negotiable Signature Bonus. This fiscal regime model includes royalties, which are calculated separately for crude oil, condensates, associated natural gas and non-associated natural gas; Oil & Gas Additional Royalty, where the minimum rate is adjusted based on production average; Contractual Exploration Fee, Exploration & Production Tax, Landowner Fee, and Abandonment Fund calculated as Units of Production. Income Tax obligation of 30%, where Pipelines, Plants, and Gathering Capital are depreciated at 10% straight line, Other Development Capital and exploitation investments can be depreciated at 25%, and operating costs and exploration costs are expensed. Loss carry forward is 10 years. Show description

The Mexico 2018 PSC Shallow Water is a production sharing contract, where the Contractors Metric of the Operating Result before Taxes (MRO) is used to split the profit between the Contractor and the Government, based on specific rules and parameters which are defined within the contract (Minimum Work Program MWP has a defined uplift for profit share). This type of fiscal regime includes royalties, which are calculated separately for crude oil, condensates, associated natural gas and non-associated natural gas, Contractual Exploration Fee, Exploration & Production Tax, Cost Recovery (where MWP is uplifted with a fix fraction defined by the contract) for OPEX, CAPEX as expensed, and Abandonment Fund calculated as Units of Production. Income Tax obligation of 30%, where Pipelines, Plants, and Gathering Capital are depreciated at 10% straight line, Other Development Capital and exploitation investments can be depreciated at 25%, and operating costs and exploration (MWP included) costs are expensed. Loss carry forward is 10 years and for deep water 15 years. Show description

The Mozambique 2006 Exploration and Production Concession Contract (EPCC) LNG is a classical production sharing contract with royalties, signature bonus, production bonuses, various fees, decommissioning fund, cost recovery, profit split using R-factors, corporate income tax and state participation (national oil company) carried until development, and featuers modelling of LNG production, and LNG price as a % of Oil Price. Show description

The Mozambique 2016 Exploration and Production Concession Contract (EPCC) is a classical production sharing contract with royalties, signature bonus, production bonuses, various fees, decommissioning fund, cost recovery, profit split using R-factors, corporate income tax and state participation carried until development. Show description

The Mozambique 2016 Exploration and Production Concession Contract (EPCC) LNG is a classical production sharing contract with royalties, signature bonus, production bonuses, various fees, decommissioning fund, cost recovery, profit split using R-factors, corporate income tax and state participation carried until development, and featuers modelling of LNG production, and LNG price as a % of Oil Price. Show description

The Namibia 1998 Royalty Tax fiscal regime comprises annual training fees, royalties on gross revenue and petroleum income tax with deductibles that includes expensed exploration costs and OPEX, and CAPEX depreciated linearly over 3 years, and a decommissioning trust fund that is depreciated linearly over the last half of the production period. Further, the additional profits tax is levied on the after-tax net cash flows by deducting the E&P costs and PIT from gross income. The first tranche of APT is only payable if operations in a license area earn an after-tax rate of return of at least 15%. If operations in the license area earn an after-tax rate of return of 20% to 25%, the second and third tranches of APT become payable. Show description

The Netherlands 2015 Royalty Tax model has royalties determined on an incremental scale based on annual production rates and levied on sales revenue (only charged on onshore fields, offshore has zero royalty). Royalty rates increase by 25% for the period where the weighted average price of crude oil imported exceeds 25 EUR/bbl. Royalty Rates increase by 100% if there is an absence of state participation. Surface Rental for Exploration (based on area and contract years) and Production (based on area) stages. Onshore exploration licenses do not pay a rental fee; however, they have a one-time provincial payment. Direct Taxation is represented by: State Profit Share (SPS), which allows an uplift for the licensees costs (Exploration is deductible as an expense, and Development Capex is depreciated by UOP), and permits corporate tax to be deducted from the SPS payment; Corporate Income Tax (CIT), where SPS is deductible from the tax base, but costs uplift is not permitted. Show description

The Nigeria 2007 production sharing contract (PSC) has several tax items, comprising royalties, signature bonus, NDDC levy, education levy, cost recovery, profit split based on R-factor, and petroleum profits tax. PSCs have become the primary choice for Nigeria for managing petroleum resources over time, particularly for offshore acreages. A PSC is an agreement between the state oil company i.e. NNPC, and other E&P companies for the purpose of exploration and production of hydrocarbons in the deep offshore and inland basins. Show description

The Norway 2019 Royalty Tax model has 2 income tax items, corporate income tax and special petroleum tax. For both income taxes, development CAPEX is depreciated linearly over 6 years and OPEX is expensed. Unused deductions can be carried forward until the end of contract. For SPT, CIT is also deductible and there is an uplift on development CAPEX of 20.8% linearly over 4 years. Norway has a unique refund of exploration and appraisal costs at 78% corresponding to the sum of the 2 income tax rates. This means that the E&A costs cannot later be used for deduction in the tax basis for CIT and SPT. The Norwegian state sometimes participates via Petoro, however since the state participates with all costs and revenues as a normal partner then state participation is not modelled. Show description

The Norway 2019 Royalty Tax and CO2 Tax model has 2 income tax items, corporate income tax and special petroleum tax, and CO2 tax. For both income taxes, development CAPEX is depreciated linearly over 6 years and OPEX is expensed. Unused deductions can be carried forward until the end of contract. For SPT, CIT is also deductible and there is an uplift on development CAPEX of 20.8% linearly over 4 years. Norway has a unique refund of exploration and appraisal costs at 78% corresponding to the sum of the 2 income tax rates. This means that the E&A costs cannot later be used for deduction in the tax basis for CIT and SPT. The Norwegian state sometimes participates via Petoro, however since the state participates with all costs and revenues as a normal partner then state participation is not modelled. Show description

The 2020 COVID-19 terms apply to all investments in 2020 and 2021, and investments until start of production under development plans delivered to the authorities before 1 Jan 2023 and approved before 1 jan 2024. The 2020 COVID-19 modification of the Norway 2019 Royalty Tax model has 2 income tax items, corporate income tax and special petroleum tax. For CIT, development CAPEX is depreciated linearly over 6 years and OPEX is expensed. For SPT, CIT is also deductible and there is an uplift on development CAPEX of 24 %, and development CAPEX plus uplift are expensed. Unused deductions can be carried forward until the end of contract for both income tax items. Norway has a unique refund of exploration and appraisal costs at 78% corresponding to the sum of the 2 income tax rates. This means that the E&A costs cannot later be used for deduction in the tax basis for CIT and SPT. The Norwegian state sometimes participates via Petoro, however since the state participates with all costs and revenues as a normal partner then state participation is not modelled. Show description

The 2020 COVID-19 terms apply to all investments in 2020 and 2021, and investments until start of production under development plans delivered to the authorities before 1 Jan 2023 and approved before 1 jan 2024. The 2020 COVID-19 modification of the Norway 2019 Royalty Tax model and CO2 Tax has 2 income tax items, corporate income tax and special petroleum tax, and CO2 tax. For CIT, development CAPEX is depreciated linearly over 6 years and OPEX is expensed. For SPT, CIT is also deductible and there is an uplift on development CAPEX of 24 %, and development CAPEX plus uplift are expensed. Unused deductions can be carried forward until the end of contract for both income tax items. Norway has a unique refund of exploration and appraisal costs at 78% corresponding to the sum of the 2 income tax rates. This means that the E&A costs cannot later be used for deduction in the tax basis for CIT and SPT. The Norwegian state sometimes participates via Petoro, however since the state participates with all costs and revenues as a normal partner then state participation is not modelled. Show description

The Norway 2021 Hydropower Income Tax model has Fall Right Lease (waterfall entitlement), property tax and 2 income tax items, corporate income tax (CIT) and natural resource tax (NRT). The Fall Right Lease can be calculated on both gross revenue basis or net revenue basis (=gross revenue minus deductions) basis. For CIT, unused cost losses are carried forward and the tax rate of 22% is applied on revenue minus costs incl. carry-forward. CAPEX is depreciated according to different capital categories. For NRT, all costs are expensed and cost losses are refunded. The NRT rate is 37% but since CIT is deducted before the NRT is calculated, an effective NRT rate of 37%/(100%-22%)=47,44% is applied. Show description

The Norway 2019 Royalty Tax model has 2 income tax items, corporate income tax and special petroleum tax. For both income taxes, development CAPEX is depreciated linearly over 6 years and OPEX is expensed. Unused deductions can be carried forward until the end of contract. For SPT, CIT is also deductible and there is an uplift on development CAPEX of 20.8% linearly over 4 years. Norway has a unique refund of exploration and appraisal costs at 78% corresponding to the sum of the 2 income tax rates. This means that the E&A costs cannot later be used for deduction in the tax basis for CIT and SPT. The Norwegian state sometimes participates via Petoro, however since the state participates with all costs and revenues as a normal partner then state participation is not modelled. In this 2021 version, the tax rates are set to 0 and Portfolio input profiles are displayed in combined graphs and tables. Show description

The Norway 2022 Royalty Tax model has 2 income tax items, corporate income tax and special petroleum tax combined with special rules concerning refund of costs. This model combines legislation from 2019 (old terms), 2020 (temporary terms) and 2021 (new terms). The Norwegian state sometimes participates via Petoro, however since the state participates with all costs and revenues as a normal partner then state participation is not modelled. Show description

The Norway 2022 Royalty Tax and CO2 Tax model has 2 income tax items, corporate income tax and special petroleum tax combined with special rules concerning refund of costs. CO2 tax is also included. This model combines legislation from 2019 (old terms), 2020 (temporary terms) and 2021 (new terms). The Norwegian state sometimes participates via Petoro, however since the state participates with all costs and revenues as a normal partner then state participation is not modelled. Show description

The Norway 2022 Royalty Tax and CO2 Tax model (NPD 60 year input) has 2 income tax items, corporate income tax and special petroleum tax combined with special rules concerning refund of costs. CO2 tax is also included. This model combines legislation from 2019 (old terms), 2020 (temporary terms) and 2021 (new terms). The Norwegian state sometimes participates via Petoro, however since the state participates with all costs and revenues as a normal partner then state participation is not modelled. Show description

The Norway 2022 Royalty Tax and Finance Costs model has 2 income tax items, corporate income tax and special petroleum tax combined with special rules concerning refund of costs. This model combines legislation from 2019 (old terms), 2020 (temporary terms) and 2022 (new terms). Interest on external debt can be added as a cost and deductible in CIT, and user specified tax deductibles (typically from other projects). The Norwegian state sometimes participates via Petoro, however since the state participates with all costs and revenues as a normal partner then state participation is not modelled. Show description

The Norway 2022 Royalty Tax CO2 Tax Finance Costs Variable Periods model has 2 income tax items, corporate income tax (CIT) and special petroleum tax (SPT) combined with special rules concerning refund of costs. In addition CO2 tax, external loan balances and interest, non-project tax deductibles and pre-payments of CIT and SPT are also modelled. Further, the first 3 years can be modelled on annual, quarterly or monthly basis, followed by 60+ years on annual basis. This model combines legislation from 2019 (old terms), 2020 (temporary terms) and 2022 (new terms). The Norwegian state sometimes participates via Petoro, however since the state participates with all costs and revenues as a normal partner then state participation is not modelled. Show description

The 2023 COVID-19 terms apply to all investments in 2020 and 2021, and investments until start of production under development plans delivered to the authorities before 1 Jan 2023 and approved before 1 jan 2024. The 2023 COVID-19 modification of the Norway 2019 Royalty Tax model and CO2 Tax has 2 income tax items, corporate income tax and special petroleum tax, and CO2 tax. For CIT, development CAPEX is depreciated linearly over 6 years and OPEX is expensed. For SPT, CIT is also deductible and there is an uplift on development CAPEX of 24 % (with updates for 2022 and from 2023 onwards), and development CAPEX plus uplift are expensed. Unused deductions can be carried forward until the end of contract for both income tax items. Norway has a unique refund of exploration and appraisal costs at 78% corresponding to the sum of the 2 income tax rates. This means that the E&A costs cannot later be used for deduction in the tax basis for CIT and SPT. The Norwegian state sometimes participates via Petoro, however since the state participates with all costs and revenues as a normal partner then state participation is not modelled. Show description

The Norway 2023 Hydropower Income Tax model has Fall Right Lease (waterfall entitlement), property tax and 2 income tax items, corporate income tax (CIT) and natural resource tax (NRT). The Fall Right Lease can be calculated on both gross revenue basis or net revenue basis (=gross revenue minus deductions) basis. For CIT, unused cost losses are carried forward and the tax rate of 22% is applied on revenue minus costs incl. carry-forward. CAPEX is depreciated according to different capital categories. For NRT, all costs are expensed and cost losses are refunded. The NRT rate is 45% but since CIT is deducted before the NRT is calculated, an effective NRT rate of 45%/(100%-22%)=57,69% is applied. Finally, Windfall tax for 2023 and 2024 is calculated if the market price for electricity is higher than 0,7 NOK/kWh. Show description

The Norway 2023 Royalty Tax CO2 Tax Finance Costs Variable Periods model has 2 income tax items, corporate income tax (CIT) and special petroleum tax (SPT) combined with special rules concerning refund of costs. In addition CO2 tax, external loan balances and interest, non-project tax deductibles and pre-payments of CIT and SPT are also modelled. Further, the first 3 years can be modelled on annual, quarterly or monthly basis, followed by 60+ years on annual basis. This model combines legislation from 2019 (old terms), 2020 (temporary terms) and 2022 (new terms including updates from 2023). The Norwegian state sometimes participates via Petoro, however since the state participates with all costs and revenues as a normal partner then state participation is not modelled. Show description

CCS projects with CO2 injectors, pipelines and CO2 capture facilties and operational costs are modelled with Corporate Income Tax. In addition, hydrocarbon projects and CCS with possible enhancement of oil and gas production (CCUS) are modelled using the Norway 2023 Royalty Tax with CO2 Tax and CCUS and Finance Costs model which has 2 income tax items, corporate income tax (CIT) and special petroleum tax (SPT) combined with special rules concerning refund of costs. In addition CO2 tax, external loan balances and interest, non-project tax deductibles and pre-payments of CIT and SPT are also modelled. Further, the first 3 years can be modelled on annual, quarterly or monthly basis, followed by 60+ years on annual basis. This model combines legislation from 2019 (old terms), 2020 (temporary terms) and 2022 (new terms including updates from 2023). The Norwegian state sometimes participates via Petoro, however since the state participates with all costs and revenues as a normal partner then state participation is not modelled. Show description

The Norway LNG Barents Sea 2019 Royalty Tax model has 2 income tax items, corporate income tax and special petroleum tax. For both income taxes, development CAPEX is depreciated linearly over 3 years and OPEX is expensed. Unused deductions can be carried forward until the end of contract. For SPT, CIT is also deductible and there is an uplift on development CAPEX of 20.8 % linearly over 4 years. Norway has a unique refund of exploration and appraisal costs at 78% corresponding to the sum of the 2 income tax rates. This means that the E&A costs cannot later be used for deduction in the tax basis for CIT and SPT. The Norwegian state sometimes participates via Petoro, however since the state participates with all costs and revenues as a normal partner then state participation is not modelled. Show description

The Pakistan 2007 PSA Deep Offshore model is executed by the IOC through a government owned entity. The production sharing agreement includes royalties, separate gas and hydrocarbon liquid production-based profit sharing rules for deep offshore with sliding scale and cost recovery, import duty, signature bonus, discovery bonus, production bonuses, various annual fees and rentals, corporate income tax, windfall levy and state participation. Show description

The Pakistan 2007 PSA Shallow Offshore model is executed by the IOC through a government owned entity. The production sharing agreement includes royalties, separate gas and hydrocarbon liquid production-based profit sharing rules for shallow offshore with sliding scale and cost recovery, import duty, signature bonus, discovery bonus, production bonuses, various annual fees and rentals, corporate income tax, windfall levy and state participation. Show description

The Pakistan 2007 PSA Ultra Deep Offshore model is executed by the IOC through a government owned entity. The production sharing agreement comprises royalties, separate gas and hydrocarbon liquid production-based profit sharing rules for ultra-deep offshore with sliding scale and cost recovery, import duty, signature bonus, discovery bonus, production bonuses, various annual fees and rentals, corporate income tax, windfall levy and state participation. Show description

The Qatar 2007 production sharing agreement (PSA) applies a combination of both an R-factor and a production sharing mechanism, with separate profit sharing for gas and hydrocarbon liquids. Additional tax items include signature bonus, production bonuses, cost recovery, corporate income tax and state participation. Show description

The Romania 2017 Royalty Tax model has separate production royalties for both gas and hydrocarbon liquids based on sliding scales. It also has a corporate income tax with deprecation of E&A DRILLEX, development DRILLEX and development CAPEX on either linear or declining basis, and OPEX, royalties and provision for decommissioning are expensed. Finally, there are additional tax items in the form of crude oil transportation royalty, gas storage royalty, gas transportation fee and oil revenue fee. Show description

The Russia 2019 Royalty Tax model has royalties represented by the calculation of the Mineral Extraction Tax, which is levied on extracted natural gas, gas condensate, and crude oil; MET formulas include adjustments coefficients according to the 2019 formula. Export Duty is included for oil, condensate, and gas, and is based on the total export volume (revenue for gas). Tax maneuver of 2019 apply for export duty and can be modified by the user. Other taxes such as Property Tax, Land & Pollution Tax, Unified Social Tax, VAT, and Import Duties are also included. Corporate Profit Tax Rate is 20%, where total gross revenue is the basis, and Capex depreciation, Operating costs, MET, Export duty, Other taxes, and Abandonment costs are tax deductibles. Companies can carry forward net operating losses up to 10 years. Show description

The Russian Federation 2019 Royalty Tax model включает роялти, представленные расчетом «Налога на добычу полезных ископаемых», который взимается с добытого природного газа, газового конденсата и сырой нефти; Формулы НДПИ включают поправочные коэффициенты. Экспортная пошлина включена для нефти, конденсата и газа и основана на общем объеме экспорта (выручка от газа). Налоговый маневр 2019 года распространяется на экспортную пошлину и может быть изменен пользователем. Также включены другие налоги, такие как налог на имущество, налог на землю и загрязнение окружающей среды, единый социальный налог, НДС и импортные пошлины. Ставка корпоративного налога на прибыль составляет 20%, где за основу берется общий валовой доход, а амортизация капитальных затрат, эксплуатационные расходы, НДПИ, экспортная пошлина, прочие налоги и отказ от налогообложения подлежат вычету из налогооблагаемой базы. Компании могут переносить чистые операционные убытки на срок до 10 лет. Show description

South Africa 2010 Royalty Tax model has a royalty based on the EBIT up to maximum 5%, and a corporate income tax with deductibles comprising of OPEX, CAPEX incl. uplift and royalties, and finally state participation which is carried until first oil/gas. Show description

The Suriname 2015 PSC is a production sharing contract, where Factor-R is used to split the profit between the Contractor and the Government (Staatsolie). This Contract includes royalties (direct flat-rate), Training Fee, Social Fee, cost recovery for OPEX, CAPEX as expensed, and Abandonment Fund calculated as Units of Production. Income Tax obligation (36%), where Capex, Opex, and Abandonment Fund are deductibles, and the contractor group can perform unlimited carry forward of NOL. The State (Staatsolie) can participate in the development and production stages of the contract. Show description

The United Kingdom 2016 Royalty Tax with Brown Field Allowance model has 2 income tax items, ring fence corporation tax and supplementary charge tax. For both income taxes, CAPEX and OPEX are expensed, and losses can be carried forward to the end of contract, with an interest of 10% p.a. for up to 6 years. In addition, this model has allowance for Brown Field developments for calculation of the supplementary charge tax. Show description

The United Kingdom 2016 Royalty Tax with HPHT and Heavy Oil Allowances has 2 income tax items, ring fence corporation tax and supplementary charge tax. For both income taxes, CAPEX and OPEX are expensed, and losses can be carried forward to the end of contract, with an interest of 10% p.a. for up to 6 years. In addition, this model has allowances for both HPHT and Heavy Oil field developments for calculation of the supplementary charge tax. Show description

The United Kingdom 2016 Royalty Tax with Investment Allowances has 2 income tax items, ring fence corporation tax and supplementary charge tax. For both income taxes, CAPEX and OPEX are expensed, and losses can be carried forward to the end of contract with an interest of 10% p.a. for up to 6 years. Show description

The United Kingdom 2016 Royalty Tax with Small Field Allowance model has 2 income tax items, ring fence corporation tax and supplementary charge tax. For both income taxes, CAPEX and OPEX are expensed, and losses can be carried forward to the end of contract, with an interest of 10% p.a. for up to 6 years. In addition, this model has allowance for Small Fields for calculation of the supplementary charge tax. Show description

The United Kingdom 2016 Royalty Tax with Deepwater Field Allowance model has 2 income tax items, Ring Fence Corporation Tax and Supplementary Charge Tax. For both income taxes, CAPEX and OPEX are expensed, and losses can be carried forward to the end of contract, with an interest of 10% p.a. for up to 6 years. In addition, this model has allowances for Deepwater fields (typically West of Shetlands). Show description

The USA 2018 Onshore Royalty Tax model has multiple tax items that vary significantly from state to state. The model is generic and input values are modified to match the conditions in each state. The generic model comprises leasehold bonus and rentals, training fee, severance tax, overriding royalty, local value tax, local property tax, local annual tax, state and federal income taxes, with the choice of CAPEX depreciation of either linear depreciation, 150% MACRS depreciation, 200% MACRS depreciation or Unit of Production depreciation. Show description

The USA 2018 Gulf of Mexico (GOM) Royalty Tax model comprises leasehold bonus and rentals, training fee, severance tax, royalty and royalty suspension volumes, and federal income tax with the choice of CAPEX depreciation of either linear depreciation, 150% MACRS depreciation, 200% MACRS depreciation or Unit of Production depreciation. Show description