Italy follows an open door licensing policy where companies can apply for available acreage at any time. Upstream licences are awarded under concession terms which are fixed by legislation. Royalty rates range from 7% to 10% depending on permit location and hydrocarbon type. An initial amount of oil and gas production is exempt from royalty every year (varies by location 400 to 1 000 b/d of oil and 2.42 to 7.74 mmcfd of gas). Corporate income tax is levied at 24%. A regional income tax of 3.9% is also levied for onshore operations. There is no state participation in upstream licences.