Country Report

Italy upstream fiscal summary

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19 November 2020

Italy upstream fiscal summary

Report summary

Italy’s upstream licences are awarded under concession terms. The main elements are a royalty and corporate income tax. There is also a regional income tax applied to onshore operations. The royalty rate depends on the permit location and hydrocarbon type. An initial volume of production is exempt from royalty each year. Corporate income tax changes have been implemented by the government on a regular basis. Companies can apply for available acreage at any time and there is no state participation.

Table of contents

  • Basis
    • Duration
    • Relinquishment
  • Government equity participation
    • Ring fencing
    • Bonuses, rentals and fees
    • Royalty
    • Indirect taxes
    • Corporate income tax
    • Fiscal treatment of decommissioning
    • 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

Tables and charts

This report includes 22 images and tables including:

  • 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
  • Effective royalty rate - shelf/deepwater, oil
  • Effective royalty rate - onshore/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
  • Indirect taxes
  • Income tax
  • Italy Concession Terms

What's included

This report contains:

  • Document

    Italy upstream fiscal summary

    PDF 979.02 KB