Extractive Industries Taxation

Extractive industries are engaged in finding, developing, producing and selling non-renewable natural resources, such as oil, natural gas and mining products. The tax and broader fiscal system that applies to the extractive industries should ensure that the government obtains an adequate and appropriate share of the benefits from its resources, while providing a return commensurate with the risks borne and functions carried out by the parties.  

The UN Handbook on Selected Issues for Taxation of the Extractives Industries by Developing Countries responds to country demand for clearer guidance on the policy and administrative aspects of applying taxes to companies active in the extractive industries. Such guidance assists policy makers and administrators in dealing with complex issues; it also assists taxpayers in their dealings with tax administrations.  

In focusing on specific areas of interest for developing countries, the Handbook covers issues of tax treaty, permanent establishment and transfer pricing, the government’s fiscal take, VAT topics, tax treatment of decommissioning, the negotiation and renegotiation of contracts, and the indirect transfer of assets. 

This second edition of the Handbook contains updated guidance on tax incentives, transfer pricing and decommissioning. Moreover, it offers new guidance on the tax treatment of subcontractors and service providers, production sharing contracts, financial transactions and audits. 

The Handbook is a product of the UN Tax Committee and its multi-stakeholder Subcommittee, supported by the Secretariat in the UN Department of Economic and Social Affairs. The Committee initiated work on taxation of extractive industries in 2013 and published the first edition of the Handbook in 2017.  


UN Handbook on Selected Issues for Taxation of the Extractives Industries by Developing Countries (2021)