All new upstream licences are awarded through the licensing rounds under Revenue Sharing Model (RSM) terms. Within the RSM regime there is no cost recovery. Revenue after royalty is shared between the government and contractor. Revenue sharing is based on high and low revenue points which are set by the government, with the respective revenue shares biddable by the contractor. Royalty is fixed but varies between 5% and 12.5% depending on a fields location. Corporate income tax is payable at the effective rate of 25.63% for domestic companies and at 43.68% for foreign companies. In February 2019, the government introduced policy reforms to incentivise exploration, which included royalty discounts to encourage faster project execution, elimination of government revenue share for emerging and frontier basins and introduction of windfall gain revenue sharing, capped government revenue share and gas marketing and pricing freedom for all new gas discoveries.