Capital Gains Tax

Against the backdrop of highly profitable deals concluded between companies transferring project shares, the VCC is researching the implementation of capital gains or transfer tax, and asking the questions: Which host governments apply it? With which legal and fiscal tools? And what are the challenges or transferable lessons learned so that countries can gain some benefit from these deals whose value derives from the rights to the natural resources?

The attached note outlined some scenarios by which direct and indirect transfers of project shares may take place, as a broad checklist in designing regulations for a capital gains tax to capture these scenarios.