Uganda: Technical Assistance Report-Implementing Fiscal Regimes for Extractive Industries: Technical Notes
IMF Staff Country Reports, December 13, 2017
Source details
- Canonical URL
- Uganda: Technical Assistance Report-Implementing Fiscal Regimes for Extractive Industries: Technical Notes
Other formats
Bibliographic details
- Published: December 13, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484332368.002
Executive summary
- IMF staff provided technical advice to the authorities of Uganda on implementing fiscal regimes for extractive industries.
- The report:
- Considers options on how to conduct future licensing rounds, including possible bid variables and bid evaluation methods.
- Provides detailed comments on the draft model Production Sharing Agreement.
- Presents simulations of the draft model Production Sharing Agreement’s fiscal terms.
- Explains how crude oil price into the refinery is likely to be a negotiated outcome using the pipeline tariff as a guide.
Findings and analytical content
- Licensing rounds:
- Options analyzed for bid variables and bid evaluation methods to guide future licensing rounds.
- Production Sharing Agreement (PSA):
- Detailed comments on the draft model PSA are provided.
- Simulations show the fiscal terms under the draft model PSA.
- Crude oil pricing:
- The report explains that crude oil price into the refinery is likely a negotiated outcome, with the pipeline tariff serving as a reference point.
Policy implications and recommendations
- Design of licensing rounds:
- Carefully select bid variables and bid evaluation methods to align with fiscal and sectoral objectives.
- Contract design:
- Revise the draft model Production Sharing Agreement based on detailed IMF comments to improve fiscal outcomes and clarity.
- Pricing and transport:
- Use the pipeline tariff as a guide in negotiating crude oil price into the refinery to ensure consistency with transportation economics.
Subjects and keywords
- Subject: Commodities, Double taxation, Economic sectors, Expenditure, Mining sector, Oil, Taxes, Value-added tax
- Keywords: Africa, company B, CR, domestic law, Double taxation, excise duty, Global, government share, gross income, gross sales, income tax, interest rate, ISCR, Mining sector, model DTA, Oil, place of business, processing company, production bonus, rate of return, service fee, tax credit, tax rate, Value-added tax
International Monetary Fund. Fiscal Affairs Dept. "Uganda: Technical Assistance Report-Implementing Fiscal Regimes for Extractive Industries: Technical Notes", IMF Staff Country Reports 2017, 368 (2017).
Content in this bundle
- Country Report