The extraction tax system in the US incorporates federal and state taxes.
The American oil and natural gas extraction tax systems is composed of a few elements which are connected with the strong position of the federal, state authorities:
- the CIT tax in the US is calculated using the 35 percent rate; there is a possibility of using it in some cases, also by companies from the oil-natural gas branch, that is the alternative minimal tax system, where the 20 percent rate is used,
- the state income taxes - they differ in terms of the applied approach and their rates range from 1 to 12 percent,
- the commissions for the resource owners - in the case of sea beds the owner is the federal government of the USA, in the case of inland resources there is a group of owners - the federal government, the states, Indian tribes, individuals, companies, etc. Commissions are calculated from the value of the products sold, coming from a specific location. The percent of transferred inland resources to the owner ranges from 12 to 30 and in the case of sea beds it is estimated in the process of granting concessions.
The extraction companies in Canada pay several kinds of taxes.