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