Country Report

Kazakhstan upstream fiscal summary

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Most licences in Kazakhstan are governed by Concession terms. The main projects (Kashagan, Karachaganak and Tengiz) and a number of smaller projects operate under the PSC/special terms. However, a law was passed in 2010 which means PSCs can no longer be awarded for new licences. Standard Concession terms include five major taxes - Mineral Extraction Tax (MET), rent tax on the export of crude oil, excess profits tax (EPT), oil export customs duty (ECD) and corporate income tax. In December 2017, Kazakhstan adopted a new Tax Code, effective January 2018 (new rates effective January 2023), which introduced optional alternative fiscal terms - Alternative Subsoil Tax (AST) for offshore and complex onshore fields in the Concession regime, that aims to incentivize investment in shelf exploration. Fields that opt for AST will be exempt from MET, rent tax on export, EPT and reimbursement of historical state costs. The AST is levied on profit at a rate linked to the oil price.

Table of contents

  • Basis
  • Licence terms
  • Government equity participation
    • Ring fencing
    • Bonuses, rentals and fees
    • Indirect taxes
    • Royalty - Mineral Extraction Tax (MET)
    • Base
    • Rate
    • MET reductions
    • Payment schedule
    • Export duty
    • Base
    • Rate
    • Incentives
    • Rent tax on export
    • Additional petroleum taxes
    • Other taxes
    • Alternative subsoil tax
    • Base
    • Rate
    • Corporate income tax
    • Base
    • Rate
    • Payment schedule
    • 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 27 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/shelf, Oil
  • Effective royalty rate - onshore/shelf, Gas
  • Maximum government share – onshore, Oil
  • Maximum government share – shelf, Oil
  • Maximum government share – onshore/shelf, 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, rentals and fees
  • Indirect taxes
  • Oil MET rates
  • MET rates
  • Oil export customs duty
  • Oil export customs duty
  • Rent tax on export
  • Rent tax on export
  • Excess profit tax
  • Excess profit tax rates
  • AST rates
  • Assumed terms by location - oil and gas

What's included

This report contains:

  • Document

    Kazakhstan upstream fiscal summary

    PDF 1.11 MB