Resource rent tax

A resource rent tax is a tax on the rents gained on the exploitation of a resource.^[1][2][3] It can cover both renewable and non-renewable resources. It is classically understood to be a tax on the surplus value generated by resource exploitation beyond the necessary costs of production (which includes rewards to capital).^[1] An investor enjoys relief from taxation until a certain rate of return has been achieved, at which point profits are shared with the host government.^[1]

Resource rent taxes are particularly prevalent in the mining and petroleum industries.^[1] Australia's Minerals Resource Rent Tax covers rents in the mining industry.^[4] Norway introduced a resource rent tax on aquaculture (i.e., salmon and trout farming) in 2023,^[5] and resource rent tax on onshore wind energy effective January 1, 2024.^[6][7][8] In Iceland, a resource rent tax has been placed on fishing industry profits.^[9] In Switzerland, there is a resource rent tax on hydropower.^[10]

Some other countries that apply resource rent tax include:^[11]

• Australia
• United Kingdom^[12]
• Canada
• Russia
• Azerbaijan
• Madagascar
• Ghana