South Africa : Technical Assistance Report-Petroleum Sector Fiscal Regime Reform-Additional Analysis for the Davis Tax Committee

Author/Editor:

International Monetary Fund. Fiscal Affairs Dept.

Publication Date:

August 1, 2016

Electronic Access:

Free Full Text (PDF file size is 929 KB).Use the free Adobe Acrobat Reader to view this PDF file

Summary:

This Technical Assistance report lists key issues discussed between the IMF’s Fiscal Affairs Department (FAD) and the Davis Tax Committee regarding recommendations for tax reforms in the oil and gas sector in South Africa. It is suggested that the royalty should have a single flat rate, rather than the current variable rate formula. The 5 percent flat rate proposed in the FAD report is modest by international standards. For corporate tax purposes, the current immediate expensing of capital expenditure and the 100 percent and 50 percent uplifts for exploration and development expenditure are overly generous and will lead to both a revenue loss and a long delay before revenue is collected.

Series:

Country Report No. 16/259

Subject:

Notes:

See also the FAD 2015 Report

English

Publication Date:

August 1, 2016

ISBN/ISSN:

9781475520286/1934-7685

Stock No:

1ZAFEA2016003

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

19

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