The Trend in Taxing Capital Gains on Transfers of Interests in Production Sharing Agreements
Article from: OGEL 4 (2015), in Taxation
Abstract
A recent trend has been identified among various Emerging Market Countries (EMCs) whereby capital gains taxes have been applied to transfers of interests in production sharing agreements (PSAs). The PSA is the instrument of choice when investing in EMCs because it seems to provide a balance between the competing interests of investors and host countries. Nevertheless, both a strong sense of resource nationalism and the perception that international oil companies (IOCs) are gaining unfair windfall profits often causes EMCs to impose taxes in a fashion that is either contrary to existing ...