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Hungary Upstream Fiscal and Regulatory Report - Increased Tax Burden Balanced by Reduced Royalty Rates

Hungary Upstream Fiscal and Regulatory Report - Increased Tax Burden Balanced by Reduced Royalty Rates

Summary

“Hungary Upstream Fiscal and Regulatory Report - Increased Tax Burden Balanced by Reduced Royalty Rates”, presents the essential information relating to the terms which govern investment into Hungary’s upstream oil and gas sector. The report sets out in detail the contractual framework under which firms must operate in the industry, clearly defining factors affecting profitability and quantifying the state’s take from hydrocarbon production. Considering political, economic and industry specific variables, the report also analyses future trends for Hungary’s upstream oil and gas investment climate.

Scope

  • Overview of current fiscal terms governing upstream oil and gas operations in Hungary
  • Assessment of the current fiscal regime’s state take and attractiveness to investors
  • Charts illustrating the regime structure, and legal and institutional frameworks
  • Detail on legal framework and governing bodies administering the industry
  • Levels of upfront payments and taxation applicable to oil and gas production
  • Information on application of fiscal and regulatory terms to specific licenses
  • Outlook on future of fiscal and regulatory terms in Hungary
Reasons to buy
  • Understand the complex regulations and contractual requirements applicable to Hungary’s upstream oil and gas sector
  • Evaluate factors determining profit levels in the industry
  • Identify potential regulatory issues facing investors in the country’s upstream sector
  • Utilize considered insight on future trends to inform decision-making


1 Table of Contents
1.1 List of Tables
1.2 List of Figures
2 Regime Overview
3 State Take Assessment
4 Key Fiscal Terms
4.1 Concession Fees
4.2 Royalties
4.2.1 2008 Onwards
4.2.2 Pre-2008 Rates
4.3 Direct Taxation
4.3.1 Corporate Income Tax
4.3.2 Energy Suppliers’ Tax
4.3.3 Local Business Tax
4.3.4 Deductions and Depreciation
4.3.5 Development Tax Allowance
4.3.6 Royalty Credit for Energy Suppliers’ Tax
4.3.7 Withholding Tax
4.4 Indirect Taxation
4.4.1 Value Added Tax
4.4.2 Customs Duties
4.5 EU Emissions Trading Scheme
5 Regulation and Licensing
5.1 Legal Framework
5.1.1 Governing Law
5.1.2 Contract Type
5.1.3 Title to Hydrocarbons
5.2 Institutional Framework
5.2.1 Licensing Authority
5.2.2 Regulatory Agency
5.3 Licensing Process
5.3.1 Licensing Rounds
5.3.2 Bidding
5.4 License Terms
5.4.1 Duration
5.4.2 Work Obligations
6 Outlook
7 Contact Information
1.1 List of Tables
Table 1: Summary
Table 2: Hungary, Concession Fee (HUF), Fourth Round, 2016
Table 3: Hungary, Standard Royalty Rates (%), 2016
Table 4: Hungary, Fixed Asset Depreciation Rates (%), 2016
Table 5: Hungary, Maximum State Aid Intensity Limits (%), 2016
1.2 List of Figures
Figure 1: Regime Flow Chart
Figure 2: Hungary, Indicative NPV10/boe, IRR and State Take Comparison - Regional , 2016
Figure 3: Hungary, Indicative NPV10/boe, IRR and State Take Comparison - Internal, 2016
Figure 4: Hungary, Legal Framework
Figure 5: Hungary, Institutional Framework

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