New Zealand upstream fiscal summary Report

Country Report 16 May 2023

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Report summary

Upstream licences are awarded under concession terms through the annual licensing rounds. The fiscal terms are fixed by the 2013 Crown Minerals Regulations. There are two mechanisms for calculating royalty. The contractor will pay either an ad valorem royalty (AVR) of 5% of net sales revenues or an accounting profits royalty (APR) of 20% of profits, whichever is higher. Corporate income tax is payable by the contractor at a rate of 28%. The fiscal terms are amongst the lowest in the region, however there is strong conservation movement against petroleum developments. There is no mandatory state equity participation in upstream licences.

Basis
Licence terms
Government equity participation
Fiscal terms
- Ring fencing
- Bonuses, rentals and fees
- Indirect taxes
- Royalty
- 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