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.