Tax Reform for Gross-Split Production Sharing Contracts Incoming: CCS and CCUS Costs Set to Become Contractors Tax-Deductibles

Work is currently being completed on a new Draft Regulation of the Government (“Draft Regulation”) on the Amendment to Regulation of the Government No. 53 of 2017 on Tax Treatments for Upstream Oil-and-Gas Business Activity Involving Gross-Split Production Sharing Contracts (“Regulation 53/2017”).[1] The aforementioned Draft Regulation has been drawn up in order to further support the country’s investment climate and encourage increased national oil-and-gas production, particularly in relation to cooperation contracts that take the form of gross-split production sharing contracts.[2]