June 16:
LONDON, June 16, 2015 /PRNewswire/ -- Exporting countries around the world are reconsidering how they tax the oil and gas industry in the wake of ongoing oil price volatility, according to EY's Global oil and gas tax guide 2015, launched today, which summarizes the oil and gas corporate tax regimes in 84 countries.
Source: http://www.prnewswire.com/news-releases/oil-price-volatility-highlights-tax-structure-vulnerabilities-of-exporting-countries-300099221.html
LONDON, June 16, 2015 /PRNewswire/ -- Exporting countries around the world are reconsidering how they tax the oil and gas industry in the wake of ongoing oil price volatility, according to EY's Global oil and gas tax guide 2015, launched today, which summarizes the oil and gas corporate tax regimes in 84 countries.
Alexey Kondrashov, EY Global Oil & Gas Tax Leader, says:
"Over
the last decade, and especially in the last five years, governments of
exporting countries around the world have gradually introduced or
adjusted their fiscal regimes to capitalize on the high oil price
environment. The dramatic oil price drop that started a year ago exposed
the vulnerabilities of many of these tax structures and is forcing
jurisdictions to focus on revising them."
Fiscal
regimes in many countries involve taxation on a per barrel basis. But
taxing based on volume hasn't served exporting countries well amid oil
price volatility. Countries that tax profit are best positioned to
withstand further dips in oil price.
Kondrashov
says: "Many tax regimes include terms that automatically respond to oil
price variations, but even these are being stretched in the current
price environment. For projects to remain economically viable, some
countries will need to impose new incentives or make adjustments to
existing tax regimes."
A number of jurisdictions have already begun adjusting fiscal terms. For example, Argentina, the UK, Colombia, Kazakhstan and China have introduced important changes to their regimes to support and intensify investments.
Kondrashov
says: "Tax regimes can't depend on a high oil price environment.
Governments must work with industry to create a regime with the
flexibility to withstand price fluctuations and incentives to encourage
investment regardless of price point. A sustainable model is in reach."
Notes to Editors
About the report
The
Global oil and gas tax guide summarizes the oil and gas corporate tax
regimes in 84 countries and also provides a directory of EY oil and gas
tax contacts. The content is based on information current to 1 January 2015, unless otherwise indicated in the text of the chapter.
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About EY Global Oil & Gas
The
oil and gas sector is constantly changing. Increasingly uncertain
energy policies, geopolitical complexities, cost management and climate
change all present significant challenges. EY's Global Oil & Gas
team supports a global network of more than 10,000 oil and gas
professionals with extensive experience in providing assurance, tax,
transaction and advisory services across the upstream, midstream,
downstream and oilfield service sub-sectors. The team works to
anticipate market trends, execute the mobility of our global resources
and articulate points of view on relevant key sector issues. With our
deep sector focus, we can help your organization drive down costs and
compete more effectively.
Source: http://www.prnewswire.com/news-releases/oil-price-volatility-highlights-tax-structure-vulnerabilities-of-exporting-countries-300099221.html
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