Country Report

Italy upstream fiscal summary

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04 July 2018

Italy upstream fiscal summary

Report summary

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.

Table of contents

  • Executive summary
    • Basis
    • Licence terms
    • Government equity participation
    • Fiscal terms
      • Ring fencing
      • Bonuses, rentals and fees
      • Royalty
      • Indirect taxes
      • Corporate income tax
        • Income tax
      • Fiscal treatment of decommissioning
      • Product pricing
      • Summary of modelled terms
        • Italy Concession 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

Tables and charts

This report includes 23 images and tables including:

  • Revenue flowchart: Italy Concession
  • Timeline
  • Timeline details
  • Split of the barrel - oil
  • Split of the barrel - gas
  • Share of profit - oil
  • Share of profit - gas
  • Effective royalty rate - onshore, oil and gas
  • Effective royalty rate - shelf/deepwater, oil
  • Effective royalty rate - shelf/deepwater, gas
  • Maximum government share - onshore. oil and gas
  • Maximum government share - shelf/deepwater, oil
  • Maximum government share - shelf/deepwater, gas
  • State share versus Pre-Share IRR - oil
  • State share versus Pre-Share IRR - gas
  • Investor IRR versus Pre-Share IRR - oil
  • Investor IRR versus Pre-Share IRR - gas
  • Bonuses and Fees
  • Area Rentals
  • Current licence, equity and fiscal terms: Table 3
  • Indirect taxes
  • Current licence, equity and fiscal terms: Table 5
  • Current licence, equity and fiscal terms: Table 6

What's included

This report contains:

  • Document

    Italy upstream fiscal summary

    PDF 329.63 KB