The US$400 million in capital gains tax owed by Italian oil group ENI to Mozambique have been paid to the country’s treasury, the president of the Tributary Authority, Rosário Fernandes said last week.
The payment is for the sale by the Italian group of a 20 percent stake in the Area 4 block to the China National Petroleum Corporation (CNPC) for US$4.2 billion.
The original partners of the Area 4 block of the Rovuma basin, which was handed over as a concession in February 2007, were ENI (70 percent), Portugal’s Galp Energia and South Korea’s Kogas (10 percent) and Mozambican state oil and gas company, Empresa Nacional de Hidrocarbonetos (ENH), with the remaining 10 percent.
The cash paid by ENI, according to Mozambican newspaper O País, accounts for 2.5 percent of the country’s Gross Domestic Product and more than 74 percent of tax contributions from large projects in 2012.
The newspaper said that in less than a year the Mozambican Treasury had taken US$753 million from capital gains tax on the sales and acquisitions of natural resources assets.
As of 2014 sales of assets in Mozambique owned by foreign companies will be subject to a 32 percent capital gains tax. (macauhub)