Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Stream Oil & Gas Ltd SOGAF



GREY:SOGAF - Post by User

Comment by newtoboard.on Apr 03, 2013 5:50pm
209 Views
Post# 21207326

RE: RE: RE: RE: Albanian Tax Code - Deferred incom

RE: RE: RE: RE: Albanian Tax Code - Deferred incom

To my knowledge fiscal aspects are actually pretty simple. There are three key elements.

1) Stream only "nets" 30% of pre-existing production volumes as specified by an initial rate and a decline curve. Based upon the decline curves and rates, this approximately matches that of expected primary production without re-completions. It is not a product of the "tax regime," but merely a (reasonable) way to account for pre-existing production by allocating value to prior CAPEX (70%) and future OPEX (30%).

2) Production revenue is subject to a royalty of 3-15% (off the top of my head, I remember it being on the middle/lower side of typical).

3) Profits are subject to a 50% income tax rate.

As has been expressed, accelerated depreciation (favorable) and other fiscal aspects may exist, but the overal structure is as stated above. The overall structure is (IMO) comparable to many of the moderately favorable fiscal regimes (E.g. US, UK). For instance, US has a lower tax rate (35%) but higher average royalties (~15% for onshore). 50% is a very common income tax rate for resources.

<< Previous
Bullboard Posts
Next >>