Skip to main content
  • News
  • Events
  • Blog
  • Search

Natural Resource Governance Institute

  • Topics
    Beneficial ownership
    Economic diversification
    Measurement of environmental and social impacts
    Sovereign wealth funds
    Civic space
    Global initiatives
    Measurement of governance
    State-owned enterprises
    Commodity prices
    Legislation and regulation
    Open data
    Subnational governance
    Contract transparency and monitoring
    Licensing and negotiation
    Revenue management
    Tax policy and revenue collection
    Corruption
    Mandatory payment disclosure
    Revenue sharing
  • Approach
    • Stakeholders
      • Civil society actors
      • Government officials
      • Journalists and media
      • Parliaments and political parties
      • Private sector
    • Natural Resource Charter
    • Regional knowledge hubs
  • Countries
    NRGI Priority Countries
    Colombia
    Guinea
    Mongolia
    Tanzania
    Dem. Rep. of Congo
    Indonesia
    Myanmar
    Tunisia
    Ghana
    Mexico
    Nigeria
    NRGI Limited Engagement Countries
    Azerbaijan
    Lebanon
    Senegal
    Ukraine
    Bolivia
    Peru
    Uganda
    Zambia
    Kyrgyz Republic
    Philippines
    OTHER COUNTRIES
  • Learning
    • Training
      • Residential training courses
        • Advanced
        • Executive
        • Anglophone Africa
        • Francophone Africa
        • Asia-Pacific
        • Eurasia
        • Latin America
        • Middle East and North Africa
      • Online training courses
        • Massive open online course (MOOC)
        • Interactive course: Petronia
        • Massive Online Open Course (Español/Spanish)
      • Trainers' modules
        • (empty)
    • Primers
    • Glossary
  • Analysis & Tools
    • Publications
    • Tools
    • Economic models
  • About Us
    • What we do
      • Strategic plan
      • Country prioritization
    • NRGI impact
    • Board of Directors
    • Advisory Council
    • Leadership team
    • Experts and staff
    • Careers and opportunities
    • Contact us
    • Financials
    • Grant-making
    • Privacy policy
  • News
  • Events
  • Blog

You are here

  1. Home
  2. Publications

Primer: Fiscal Regime Design

27 April 2015
Download
Primer: Fiscal Regime Design (PDF 162.47 KB)
Topics
Tax policy and revenue collection
Precepts
P4 What are Natural Resource Charter precepts?
Social Sharing
Natural resource development may provide employment and other returns, but its principal benefit is the generation of government revenues to support development and the well-being of citizens. Realizing these revenues requires a well-designed fiscal system that takes into account the nature of extractive resources, the considerable uncertainties inherent in their exploration, and the capacities of the government.

KEY MESSAGES:
  • The fiscal regime is the set of tools that determine how the revenues from oil and mining projects are shared between the government and companies.
  • There are a variety of fiscal tools that can be used to create a fiscal regime to govern oil and mining projects, including royalties, taxes, production sharing, and bonuses.
  • Which fiscal tools a government chooses to employ for its oil or mining sectors depends on balancing a number of factors, including when the state hopes to receive the revenues, how to share the investment risk, how to respond to changes in profitability, and how strongly to promote new investments.
  • Some companies, like many taxpayers, use loopholes to try to lessen the amount they are required to pay to the government. A strong fiscal regime can be designed to avoid some of these loopholes.


Typical PSC 


Revenue Flows in a Tax and Royalty System 


Transfer Pricing 

Related content

Forecasting Ghana's Oil Revenues: What Open Fiscal Modeling Tells Us About the Budget Year Ahead

Samuel Bekoe, David Mihalyi
19 December 2014

Rio Tinto, Mongolia, and the Art of Negotiating Amidst Price Volatility

Amir Shafaie
24 June 2015

A Taxing Question Arises When Commodity Prices Fall

David Manley, Thomas Lassourd
24 June 2015

Lower Oil Prices: An Opportunity for Oil and Gas Companies

Carole Nakhle
11 June 2015

New Producers Must Manage Great Expectations in a Time of Low Oil and Gas Prices

Patrick Heller
13 July 2015

Recent Tweets

  • NRGI
    NRGI
    @NRGInstitute
    Follow @NRGInstitute
    Civil society actors in #Ghana are asking questions about the use of #oil money: t.co/oJ3QcUcTZD
    9 hours 34 min ago.
    Reply Retweet Favorite
  • NRGI
    NRGI
    @NRGInstitute
    Follow @NRGInstitute
    As mining becomes a vital part of #climatechange strategies, many developing countries still struggle to tax… t.co/cbBcpiF22k
    10 hours 42 min ago.
    Reply Retweet Favorite
Helping people to realize the benefits of their countries’ endowments of oil, gas and minerals.
Follow on Facebook Follow on Twitter Subscribe to Updates
  • Topics
    Beneficial ownership
    Civic space
    Commodity prices
    Contract transparency and monitoring
    Corruption
    Economic diversification
    Global initiatives
    Legislation and regulation
    Licensing and negotiation
    Mandatory payment disclosure
    Measurement of environmental and social impacts
    Measurement of governance
    Open data
    Revenue management
    Revenue sharing
    Sovereign wealth funds
    State-owned enterprises
    Subnational governance
    Tax policy and revenue collection
  • Approach
    Array
  • Priority
    Countries
    • Colombia
    • Dem. Rep. of Congo
    • Ghana
    • Guinea
    • Indonesia
    • Mexico
    • Mongolia
    • Myanmar
    • Nigeria
    • Tanzania
    • Tunisia
  • Learning
    • Training
    • Primers
  • Analysis & Tools
    Array
  • About Us
    • What we do
    • NRGI impact
    • Board of Directors
    • Advisory Council
    • Leadership team
    • Experts and staff
    • Careers and opportunities
    • Contact us
    • Financials
    • Grant-making
    • Privacy policy
  • News
  • Blog
  • Events
  • Search