Country Report

Japan upstream fiscal summary

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18 December 2018

Japan upstream fiscal summary

Report summary

Simple Concession-based fiscal regime where no Royalty is paid on production and Corporate Income Tax is applied to profits.  Given high domestic needs relative to supply, all production is required to be sold domestically.

Table of contents

  • Executive summary
    • Basis
    • Licence terms
    • Government equity participation
    • Fiscal terms
      • Bonuses, rentals and fees
      • Indirect taxes
      • Royalty
      • Corporate income tax
        • Ring fencing
        • Companies can consolidate their oil and gas activities for the corporate income tax purposes.
        • Base
        • Rate
        • The contractor is subject to corporate income tax at a rate of 30.62%.
        • Payment schedule
        • The fiscal year runs from April to April the following year. Income tax is paid on an annual basis.
      • Fiscal treatment of decommissioning
      • Product pricing
        • Domestic Market Obligation (DMO)
      • Summary of modelled terms
        • Assumed terms by location - oil and gas
    • 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 15 images and tables including:

  • Revenue flowchart: Japan Concession
  • Timeline
  • Timeline details
  • Split of Barrel - oil
  • Split of barrel - gas
  • Share of profit - oil
  • Share of profit - gas
  • Effective royalty rate and minimum state share
  • Maximum government share and maximum state share
  • 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
  • Indirect taxes
  • Current licence, equity and fiscal terms: Table 2

What's included

This report contains:

  • Document

    Japan upstream fiscal summary

    PDF 772.08 KB

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