1. To whom do the tax provisions apply?
- Staatsolie Maatschappij Suriname N.V.
- Contractor(party): a third party with whom Staatsolie Maatschappij Suriname N.V. has entered into a petroleum agreement with regard to a contracting party contract territory and the legal successors of those third parties.
- Subcontractor: a person or legal entity who, directly or indirectly, provides services related to and characteristic of petroleum work to a contractor, in accordance with custom in the international petroleum industry.
2. What is a petroleum agreement?
A contract entered by Staatsolie Maatschappij Suriname N.V. and a contractor (party) for the prospecting, exploration and exploitation of petroleum in an area for which the right of prospecting, exploration and exploitation has been granted.
3. What are petroleum activities?
The prospection, exploration, development, production, transportation, processing, refining, liquefying, trading, importing, and exporting of petroleum or petroleum products.
4. Which tax laws are applicable for Staatsolie Maatschappij Suriname N.V, contractor (party) and subcontractor?
Staatsolie Maatschappij Suriname N.V., contractor and subcontractor are subject to all valid tax laws, stamp duties, levies and all other costs of a general nature that are not discriminatory in nature with respect to the contractor. The foregoing does not apply if the Petroleum law or the Ming Decree deviates from it or if an exemption is granted.
5. Is royalty due?
The royalties which Staatsolie Maatschappij Suriname N.V. owes regarding the concession area is 6.25% of the gross production. Gross production is the total production of petroleum in the concession area except for water, sediment and all petroleum used during the petroleum activities.
6. Are surface rights due?
Staatsolie Maatschappij Suriname N.V. is released from the obligation to pay the surface rights.
7. Are import and export duties due?
Staatsolie Maatschappij Suriname N.V., contractors and subcontractors are exempt from import and export duties for the import and export of business assets, materials, goods or equipment of any kind, which are used for petroleum activities.
If these goods have been imported by the contractor or subcontractor, the exemption only applies if the goods, which are not the property of Staatsolie Maatschappij Suriname NV, become the property of Staatsolie Maatschappij Suriname NV after the completion of the petroleum activities in Suriname or if the goods are exported out of Suriname.
The household items of the personnel of the contractor and subcontractor are exempt from import duties on import into Suriname, only if these items have already been used previous to their import and have been imported within 6 (six) months after arrival of the person concerned.
Except for statistics and consent duties, no further export duty, stamp duty or other charge, levy or tax will be levied or payable on the export of petroleum.
The following are excluded from the exemption of import and export duties:
- Food, alcoholic ad non-alcoholic beverages, for human consumption
- Fuels and lubricants.
- Wood and wood products.
- Textiles, textile goods, clothing and footwear, except those commonly used in petroleum activities
- Firearms and ammunition therefor.
- Office furniture.
- Unused air conditioners other than for business premises.
- Gunpowder and explosives, except those customarily used during petroleum activities.
- Sports and pleasure boats and their engines.
- Unused furniture, appliances and equipment, whether mechanical or not.
8. Are statistics and consent rights due?
Staatsolie Maatschappij Suriname N.V., contractors and subcontractors are subject to the statutory provisions regarding the statistics and consent right law for the import and export of goods.
The statistics and consent rights payable by Staatsolie Maatschappij Suriname N.V. on the import and export of goods will not exceed the equivalent of US $ 300,000 (three hundred thousand American Dollars) in any calendar year.
The statistics and consent rights payable by the contractor and subcontractor on the import and export of goods will not exceed the equivalent of US $ 300,000 (three hundred thousand US Dollars) in any calendar year. If several petroleum agreements have been concluded with 1 (one) contractor, the statistic and consent right owed will be determined per petroleum agreement.
Staatsolie Maatschappij Suriname N.V. and the contractor are released from the obligation to pay statistics and consent rights in case of an export of petroleum in relation to the repayment of borrowed and other funds intended for the implementation of the petroleum agreement.
9. Which income tax rate applies to the contractor?
Under the 1922 Income Tax Law, a contractor will be subject to income tax at the rates prevailing on the date of entry into force of the petroleum agreement.
If the tax rates are changed, such change will not apply to the contractor and will not affect its tax liability under 1922 Income Tax Law.
10. Is sales tax due?
The Government of the Republic of Suriname has made the commitment to grant an exemption to the contractor. The Government has assured the contractor that the contractor is exempt and is not subject to sales tax on the sale or purchase of goods or the provision of services.
11. Is dividend tax due?
The Government of the Republic of Suriname has made the commitment to grant an exemption to the contractor for taxes on dividends paid by a contracting party to a non-Surinamese shareholder.
12. Are stamp duties due?
State enterprises, contractor and subcontractor are subject to stamp duty.
The Government of the Republic of Suriname has made the commitment to exempt the contractor from stamp duty for taxes owed on the sale of an interest arising from a petroleum agreement or the sale of the shares of a contractor party by non-Surinamese shareholders.