Extra taxation of companies in the energy sector Ana Puşcaş

Transcription

1 Extra taxation of companies in the energy sector Ana Puşcaş 20 March 2013

2 Agenda Extra taxation 1. Energy package 2. Oil&Gas taxation around the globe 3. Case study UK 1

3 Agenda Extra taxation 1. Energy package 2. Oil&Gas taxation around the globe 3. Case study UK 2

4 Energy package Ordinance no 5/2013 approving some special taxation rules for activities with a monopoly character in the electricity and natural gas sectors ( Ordinance 5/2013 ) Ordinance no 7/2013 approving the taxation of additional revenues derived following the deregulation of the natural gas price ( Ordinance 7/2013 ) Ordinance no 6/2013 approving a special taxation rule for companies in the natural resources (excluding natural gas) exploitation sector ( Ordinance 6/2013 ) General aspects limited application: 1 February 2013 to 31 December 2014 Due on a monthly basis Declared purpose collect funds to the state budget, to fund subsidies to be offered to vulnerable consumers and state funded projects 3

5 Extra taxation gas Ordinance no 7/2013 approving the taxation of additional revenues derived following the deregulation of the natural gas price ( Ordinance 7/2013 ) Taxpayers: companies which extract and sell natural gas in Romania (onshore and offshore) Details: 60% tax on the additional income derived from deregulation. Formula: Additional tax due = 0.60 * (additional income royalty * additional income - investment in upstream sector) 4

6 Extra taxation crude petroleum Ordinance no 6/2013 approving a special taxation rule for companies in the natural resources (excluding natural gas) exploitation sector ( Ordinance 6/2013 ) Taxpayers: specific activities, including extraction of crude petroleum Details: 5% of the turnover registered by companies subject to this tax 5

7 Extra taxation What next? Will the new energy package cease to exist after 31 December 2014? How will the new royalties system look like? 6

8 Agenda Extra taxation 1. Energy package 2. Oil&Gas taxation around the globe 3. Case study UK 7

9 Oil&Gas taxation around the globe How is this taxed? - royalties e.g. Russia, US, Canada, Brazil, Nigeria - sharing e.g. African countries - extra taxation of difference between the market price vs costs / limit profitability rate, e.g. Australia, Norway, UK - other state owned, local contingents 8

10 Oil&Gas taxation around the globe Country Tax (%) Amount Comments Australia Royalties 0% % Corporate Income Tax 30% Resource rent tax 40% Canada Royalties 10% - 45% Corporate Income Tax 10% - 16% Denmark Corporate Income Tax 25% 70% Hydrocarbon tax Netherlands Royalties 0% - 8% Income Tax Rate 25% CIT - 20% for the first EUR Surface Rent Tax 703 euros/sq km Production areas State Profit Share levy 50% Norway Income Tax Rate 28% Onshore tax regime Marginal Tax Rate 78% CIT - 28%, special tax 50% - offshore tax regime Romania Royalties 3.5% % Extra Taxation 60% of additional income / 0.5%* turnover Limited application Corporate Income Tax 16% UK Corporation Tax Rate 30% Supplimetary Charge Rate 32% Petroleum Revenue Tax Rate 50% USA Royalties 12.5% - 30% Onshore 18.75% Offshore Corporate Income Tax 35% Severance Tax Depends on the state Data as of 2012, except Romania Source : IBFD 9

11 Agenda Extra taxation 1. Energy package 2. Oil&Gas taxation around the globe 3. Case study UK 10

12 Oil&Gas taxation around the globe Rates of taxation on North Sea oil production Petroleum Corporation Supplementary Year revenue tax tax charge Royalties % 52% 12.5% % 52% 12.5% % 52% 12.5% % 52% 12.5% % 52% 12.5% % 52% 12.5% % 52% 12.5% % 52% 12.5% % 50% 12.5% % 45% 12.5% % 40% 12.5% % 35% 12.5% % 35% 12.5% % 35% 12.5% % 35% 12.5% % 34% 12.5% % 33% 12.5% % 33% 12.5% % 33% 12.5% % 33% 12.5% % 33% 12.5% % 33% 12.5% % 31% 12.5% % 31% 12.5% % 30% 12.5% % 30% 12.5% % 30% 12.5% Rates of taxation on North Sea oil production Petroleum Corporation Supplementary Year revenue tax tax charge Royalties % 30% 10% 12.5% % 30% 10% % 30% 10% % 30% 20% % 30% 20% % 30% 20% % 30% 20% % 30% 20% % 30% 20% % 30% 32% % 30% 32% HM Revenue & Customs website 11

13 Oil&Gas taxation around the globe Lessons learned - not retrospective - royalties or extra taxation - surcharges backed-up by deduction, such as R&D, indefinite carry forward of losses, etc. - transparency 12

14 Ana Pușcaș Manager, Taxation Services 2013 KPMG Tax SRL, a Romanian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative("KPMG International"), a Swiss entity. All rights reserved. PDC no The KPMG name, logo and cutting through complexity are registered trademarks or trademarks of KPMG International Cooperative (KPMG International).