The offshore Israel fiscal terms are exceptional. Terms are very similar to USA Gulf of Mexico terms, and include a 27.5% Depletion Allowance. Corporate Tax is applied to income after deduction of royalty, costs, and the depletion allowance. Assuming the Leaseholder is a branch of a foreign company (no dividend tax), and applying 25% corporate tax (2010 forward), the effective tax rate can reach less than 15% due to favorable impact of the depletion allowance