ReportsWeb- South Africa Upstream Fiscal and Regulatory Report | Page 2

Table of Content:
1. Table of Contents 1
1.1. List of Tables 2
1.2. List of Figures 2
2. Regime Overview 3
3. State Take Assessment 5
4. Key Fiscal Terms 6
4.1. Royalties, Bonuses and Fees 6
4.1.1. Royalties 6
4.1.2. Exploration Fees 6
4.1.3. Upstream Training Trust Fees 7
4.2. Direct Taxation 7
4.2.1. Corporate Income Tax 7
4.2.2. Deductions and Depreciation 8
4.2.3. Withholding Tax 8
4.3. Indirect Taxation 8
4.3.1. Value Added Tax 8
4.3.2. Customs Duties 9
4.4. Participation Requirements 9
4.4.1. State Participation 9
4.4.2. Historically Disadvantaged South African Participation 9
4.5. Fiscal Stability Agreements 9
5. Regulation and Licensing 10
5.1. Legal Framework 10
5.1.1. Governing Law 10
5.1.2. Contract Type 10
5.1.3. Title to Hydrocarbons 10
5.2. Institutional Framework 11
5.2.1. Licensing Authority 11
5.2.2. Regulatory Agency 11
5.2.3. National Oil Company 12
5.3. Licensing Process 12
5.4. License Terms 13
5.4.1. Duration and Relinquishments 13
5.4.2. Work Obligation 13
5.5. Local Content 13
5.6. Regulations on Hydraulic Fracturing 13
6. Outlook 14