Part V Stability and credibility
Author:
International Monetary Fund
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Language:
English
Print Publication Date:
19 Apr 2010
Keywords:
BOOK; government; country; economic rent; State participation; rate of return; tax authorities; cash flow; government share; host government; Resource rent tax; Oil; Tax administration core functions; Corporate income tax; Oil sector; Africa; Global; North America; Caribbean; Sub-Saharan Africa

Abstract

Mining and petroleum agreements governing the exploration and development of natural resources frequently include contractual assurances of stability. These stability clauses are intended as legally binding commitments by the host country’s government. The commitment may be for an initial period of years or for the length of the agreement. They may cover a broad-range of host country laws or be limited to fiscal laws or even certain provisions in the fiscal laws, such as tax and royalty rates. This chapter primarily addresses contractual assurances of fiscal stability.1 “Fiscal stability” here means stability and predictability in the taxation, production-sharing, pricing, or state participation rules that govern the division of proceeds from a resource project.2

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Cover The Taxation of Petroleum and Minerals
The Taxation of Petroleum and Minerals
Principles, Problems and Practice
ISBN:
9780415781381
Publication Date:
19 Apr 2010
Publisher:
Routledge
DOI:
https://doi.org/10.5089/9780415781381.071
Pages:
471