Country Report

Iceland upstream fiscal summary

30 April 2021

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30 April 2021

Iceland upstream fiscal summary

Report summary

Iceland’s concession regime includes an Extraction Levy, a Special Hydrocarbon Tax and Corporate Income Tax. All tax terms are fixed and are ring-fenced at the field level. The Special Hydrocarbon Tax rate increases in relation to a profit ratio. Permits are awarded through licensing rounds and the government has the right to participate. Norway also has the right to participate in any license awarded within the agreement zone on the continental shelf.

Basis
Licence terms
- Duration
- Relinquishment
Government equity participation
Fiscal terms
- Bonuses, rentals and fees
- Indirect taxes
- Royalty
- Ring fencing
- Base
- Rate
- Additional petroleum taxes
- Ring fencing
- Base
- Deductions
- Rate
- Corporate income tax
- Ring fencing
- Base
- Deductions
- Rate
- Product pricing
- Summary of modelled terms
Recent history of fiscal changes
Stability provisions
Split of the barrel and share of profit
Effective royalty rate and maximum government share
Progressivity
Fiscal deterrence