Profitability (Internal rate of return – post normal hydrocarbon income tax)

COMPANY INCOME TAX
27% of Taxable Income Deductibles:
– Costs
– Investments (30% depreciation/year)
– Royalty
18% Tax on Company Income from other activities
SPECIAL TAX
Rate-of-Return based (ROR)
– Higher return, higher special tax
Calculation basis: Cash flow
Special Tax Rates
– ROR: < 20%: 0% Special Tax
– ROR: >=20 og <25% 10% Special Tax
– ROR: >=25 og <30%: 25% Special Tax
– ROR: > 30%: 40% Special Tax
Deductibles:
– Costs and investments
– Company Income Tax and Royalty
– Not interest
Ring-fence (field basis)
ROYALTY
2% of Gross Income
Deductible in tax calculation
Deductible in tax calculation