Natural Resource Taxation

Day 1: Introduction to Natural Resource Taxation

• Importance of natural resource taxation for economic development
• Overview of fiscal regimes including royalties, corporate income tax, production sharing agreements (PSAs), and hybrids.
• Key challenges in taxing renewable and non-renewable resources.
• The role of economic rent in resource taxation.

Workshop: Comparative analysis of resource taxation systems in different countries.

Day 2: Fiscal Regimes and Legal Frameworks

• Royalties include fixed, variable, and Ad Valorem types.
• Corporate income tax and resource-specific tax structures are explored.
• Legal frameworks for resource taxation and international agreements are discussed.
• Dispute resolution mechanisms in resource taxation are examined.

Activity: Drafting a simple fiscal regime for a resource-rich country.

Day 3: Revenue Collection, Allocation, and Administration

• Mechanisms for revenue collection in natural resource taxation.
• Revenue allocation for sustainable development and addressing volatility.
• Sovereign wealth funds and stabilization funds.
• Avoiding revenue leakage: addressing transfer pricing and base erosion.

Case Study: Successful management of resource revenues in a selected country.

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Day 4: Sector-Specific Taxation and Transparency

• Taxation in the mining sector: unique challenges and best practices.
• Oil and gas taxation: upstream, midstream, and downstream considerations.
• Transparency initiatives: EITI, BEPS framework, and mandatory disclosures.
• Taxation in artisanal and small-scale mining (ASM).

Simulation: Identifying and addressing tax evasion in a resource project.

Day 5: Emerging Trends and Sustainability

• Resource taxation in the context of climate change and energy transition.
• Carbon taxes and environmental taxation in resource industries.
• Managing declining resources and economic diversification.
• Final review and group presentations: developing a resource taxation policy.

Certification Ceremony: Distribution of certificates upon successful completion.

Day 1: Introduction to Natural Resource Taxation

• Importance of natural resource taxation in economic development.
• Types of natural resources: renewable vs. non-renewable.
• Overview of fiscal regimes in resource taxation (royalties, income tax, production sharing, etc.).
• Key challenges in taxing natural resources.

Workshop: Comparative analysis of resource taxation systems in different countries

Day 2: Economic Principles of Resource Taxation

• Economic rent and its role in resource taxation.
• Balancing equity, efficiency, and revenue generation.
• Taxation’s impact on resource exploration, development, and production.
• Resource dependency and its fiscal implications.

Case Study: Examining the economic impacts of tax policy on a resource-rich country.

Day 3: Legal and Institutional Frameworks

• Legal structures governing natural resource taxation.
• Tax treaties and agreements in resource extraction.
• Role of revenue authorities and regulatory agencies.
• Dispute resolution mechanisms in natural resource taxation.

Workshop: Drafting key provisions for a natural resource tax law.

Day 4: Fiscal Regimes in Natural Resource Taxation

• Royalties: fixed, variable, and Ad Valorem.
• Corporate income tax and resource-specific tax structures.
• Production sharing agreements (PSAs) and service contracts.
• Hybrid fiscal regimes and their applications.

Activity: Designing a fiscal regime for a hypothetical resource project.

Day 5: Revenue Collection and Allocation

• Revenue collection mechanisms in resource taxation.
• Revenue allocation for sustainable development and social equity.
• Managing resource revenue volatility.
• Resource funds: sovereign wealth funds and stabilization funds.

Discussion: Best practices for resource revenue allocation and management.

Day 6: Taxation of the Mining Sector

• Tax structures for mineral resources.
• Issues in valuing and pricing minerals.
• Taxation of artisanal and small-scale mining (ASM).
• Environmental taxes in the mining sector.

Case Study: Review of successful mining tax policies in resource-rich countries.

Day 7: Taxation of the Oil and Gas Sector

• Petroleum fiscal regimes: royalties, taxes, and profit-sharing agreements.
• Tax challenges in upstream, midstream, and downstream sectors.
• Impact of oil price volatility on tax revenues.
• Carbon taxation in the oil and gas industry.

Workshop: Analyzing an oil and gas production sharing agreement.

Day 8: Avoiding Tax Evasion and Revenue Leakage

• Transfer pricing issues in natural resource industries.
• Base erosion and profit shifting (BEPS) and its implications.
• Transparency initiatives: EITI and mandatory disclosure laws.
• Strengthening capacity for revenue administration in resource taxation.

Simulation: Identifying and addressing tax evasion in a resource project.

Day 9: International Frameworks and Agreements

• Role of international organizations in resource taxation.
• Aligning domestic tax policies with global standards (OECD, IMF, UN).
• Cross-border resource taxation and double taxation treaties.
• Emerging issues: digitalization, ESG factors, and energy transition.

Activity: Drafting recommendations for aligning resource taxation with global frameworks.

Day 10: Sustainability, Challenges, and Future Trends

• Resource taxation in the context of climate change and green energy.
• Addressing resource dependency and economic diversification.
• Managing declining resources and sunset industries.
• Review and presentation of group projects.

Mock Exercise: Developing a comprehensive resource taxation policy for a case study country.

Certification Ceremony: Certificates awarded upon successful completion.