… Foreign investors are well aware that a significant change in the level of taxation poses a serious risk, especially when investing in a country at an early stage of economic and institutional development. In many cases, they will obtain appropriate guarantees in this regard, for example in the form of stability agreements that limit or prohibit the possibility of raising taxes. Indeed, in 2001, but without success, GEM attempted to obtain such an agreement in 2001, a few years after claimants` initial investment, and in 2002, Vostokneftegaz – a company controlled by complainants – secured a stability agreement on a number of taxes. In the absence of such a stability agreement in favour of GEM, the applicants failed to establish that they had legitimate expectations that they would not be subject to significant tax increases in the future. If a sale in a robust market, as it existed until recently, a significant part of the premium or capital gain that the investor obtains from such sales (which may be significant) is rent.39 Nevertheless, the investor may, depending on current legislation and regulations, be able to structure the sale in a way that limits taxation (e.g.B. if the tax rules are incomplete or unclear). Premiums in recent years have far exceeded expectations due to soaring oil and mineral prices and have rightly encouraged a re-examination of their tax treatment.40 The way the problem arose a few years ago in Ghana, Mozambique and Uganda, both in mining and mining41. , who ask themselves with these questions, focus on these issues.
Should these benefits be taxed and, if so, who should or can tax the profits? This also applies to Romania, where the concession of oil transactions is made on the basis of oil contracts between the National Mineral Resources Agency (“NAMR”) and national and foreign legal entities, according to a public auction procedure. Therefore, the stability of the economic conditions of the legislation applicable to the oil industry is essential for any foreign investor who is considering investing in our country.