Major Directions in Oil & Gas Taxation with Particular Attention to Eurasia and Middle East North
Africa Regions
OVERVIEW
Hydrocarbons taxation is a key contributor to Government budgets and a critical parameter for investment decision-making. Current domestic and international developments, both in the nature of the petroleum industry and in respect of the overall fiscal environment, particularly in countries of these Regions, provide a timely opportunity to examine the impact of the hydrocarbons taxation regime in contributing to public financing while creating an environment conducive to investment and growth. Thus Governments desperately searching for new sources of revenues see the resources sector as an obvious target. As a practical matter, more rent can however be obtained only if the revenue can be extracted without damaging investment and confidence. Higher taxes do not necessarily mean higher revenues, particularly if they lead to a loss in investment, revenues and profits.
Many Governments are attracted to copying other countries’ measures, not fully appreciating that what might work in one jurisdiction does not necessarily translate well into another. Fiscal regimes should be, in principle, tailored to the relevant oil and gas province realities and well-crafted tax regimes can benefit both tax collector and taxpayer. Against this principled background, the workshop will examine key elements of the current debate over tax regimes including the outlook for fiscal stability, for PSAs versus tax-and-royalty regimes and for profits-based versus production-based systems.
♦ WHAT IS ITIC
The International Tax and Investment Center (ITIC) is an independent, non-profit research and education foundation headquartered in Washington D.C. and with offices in Azerbaijan, Jordan, Kazakhstan, the Philippines, Russia, Ukraine and UK.
♦ ORIGIN
ITIC was established in 1993, upon the initiative of the fiscal authorities of Russia and Kazakhstan and of MNEs then seeking to operate in those jurisdictions post-Independence, for the purpose of helping to develop modern tax systems there.
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