Country Report

Brazil upstream fiscal summary

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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

    • Basis
    • Licence terms
    • Government equity participation
    • Fiscal terms
    • Bonuses, rentals and fees
    • Area rentals
    • Environmental compensation tax (SNUC)
    • Indirect taxes
    • 8 more item(s)...
    • 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
    • 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:

  • Timeline
  • Split of the barrel - oil
  • Split of the barrel - gas
  • Share of profit - oil
  • Share of profit - gas
  • Effective royalty rate - onshore
  • Effective royalty rate - offshore
  • Effective royalty rate
  • Maximum government share - onshore
  • Maximum government share - offshore
  • Maximum government share
  • 30 more item(s)...

What's included

This report contains:

  • Document

    Brazil upstream fiscal summary

    PDF 1.27 MB