Posts Tagged 'investment'

The operations of international oil companies operating in developing countries have a disproportionate impact on the finances of these countries as a result of the contributions made to these countries in terms of taxes and other payments in return for the right to extract and sell hydrocarbon resources. Given that these hydrocarbon resources are non-replaceable, once extracted, the governments and public in many host countries are concerned that the revenue-receipts from the sale of their hydrocarbon resources accruing to national governments are maximized since they are likely to constitute the single most important engine of growth in the foreseeable future. Recognizing that oil-production contracts signed between countries and international oil companies vary from country-to-country, this note provides a review of the variety of these arrangements in use, paying special attention to the tax regimes that they incorporate. Based on available information, the literature indicates that there is no substantial difference between the different oil-production arrangements as revenue sources for national governments. This review of the different tax regimes implied by the contractual arrangements is followed by a description of the national tax arrangements applicable to the international oil companies that are in effect in a group of selected countries which include: Guyana, Suriname, Colombia, Trinidad and Tobago, Venezuela, Ghana, Kenya, and Angola.

Published Date: April 2021
Author: Keith Dublin

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