Country Report
Brazil upstream fiscal summary
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*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Brazil's upstream industry is primarily licensed with a complex concession fiscal regime. From October 2013, profit sharing contracts (PSC) are used for pre-salt developments and other strategic areas. Licences are awarded in regular rounds. Concession terms primarily include a 10% royalty, special participation tax that varies with time, location and production between 10% and 40%, and a 34% corporate income tax. PSC terms mainly include a 15% royalty, 80% cost recovery ceiling, and a biddable government profit share. The latter is adjusted based on a price and production combination. Corporate income tax applies similar to concessions. A key issue in Brazil is the complex range of indirect taxes in both regimes at the federal, state and local levels. These taxes add approximately 15% to 20% to project investments and costs.
Table of contents
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Concession
- Basis
- Licence terms
- Government equity participation
- Fiscal terms
- Bonuses, rentals and fees
- Area rentals
- Environmental compensation tax (SNUC)
- Indirect taxes
- 8 more item(s)...
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Production sharing contract (PSC)
- Basis
- Government equity participation
- Fiscal terms
- Bonuses, rentals and fees
- Environmental compensation tax (SNUC)
- Indirect taxes
- Royalty
- Research and development obligation
- 7 more item(s)...
- Recent history of fiscal changes
- Stability provisions
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Split of the barrel and share of profit
- Concession
- PSC
- Effective royalty rate and maximum government share
- Concession
- PSC
- Concession
- PSC
- Progressivity
- 5 more item(s)...
Tables and charts
This report includes the following images and tables:
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TimelineSplit of the barrel - oil
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Split of the barrel - gasShare of profit - oilShare of profit - gasEffective royalty rate - onshoreEffective royalty rate - offshoreEffective royalty rateMaximum government share - onshoreMaximum government share - offshoreMaximum government share
- 30 more item(s)...
What's included
This report contains:
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