Deposit and Withdrawal Rules
Deposit Rules
Revenues from liquefied natural gas production from areas 1 and 4, offshore of the Rovuma Basin, and future oil and natural gas development and production projects, deposited in the Treasury's Single Account (CUF – transitory oil and gas revenues), domiciled in the Banco de Moçambique, are distributed quarterly as follows:
- Over the first 15 years, 40% to the single FSM account and 60% to the State Budget's Treasury Single Account; and
- From the 16th year onwards, 50% to the single FSM account and 50% to the State Budget's Treasury Single Account.
The base of contribution for the collection of revenues includes:
- The gross tax revenue from the exploitation of petroleum resources, including tax on oil production and corporate income tax, including that resulting from the taxation of capital gains;
- Production bonuses; and
- Production sharing from oil profit.
Withdrawals from the FSM shall occur in the following cases, by authorization of the Assembly of the Republic:
- If actual revenues during a fiscal year are materially lower than the projections made for the same fiscal year, an amount not exceeding 4% of the final balance calculated in the previous year may be transferred from the FSM to support the State Budget;
- In the event of a public calamity leading to the declaration of a state of siege, state of emergency, and/or war, in compliance with the Constitution of the Republic and applicable legislation, financial resources may be transferred to support the State Budget in percentages higher than those provided for in Article 8 of the FSM law; and
- At the end of the exploitation of resources, if the projected revenues channeled to the State Budget are less than the expected real income of 3% of the investments of the FSM, withdrawals are made so that the total revenues channeled to the budget match the expected income (3%).