1. To whom do the tax provisions apply?
- Staatsolie Maatschappij Suriname N.V.
- Contractor: the joint reference to third parties who have entered into a petroleum agreement with state-owned enterprises, including Staatsolie Maatschappij Suriname N.V., or at least the legal successors of those third parties.
- Contractor party: any third party with whom a state-owned enterprise, including Staatsolie Maatschappij Suriname N.V., has entered into a petroleum agreement, or at least 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 is petroleum work?
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, subcontractor and contractorparty?
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 by state-owned enterprises, contractors and subcontractors?
The amendment to the Petroleum Act of 30 December 2022 stipulates that state-owned enterprises, contractors and subcontractors, insofar as relevant in the context of performing petroleum activities, are exempt from and are not subject to sales tax for the duration of the petroleum agreement they entered into, on the the sale or purchase of goods or the provision of services.
11. Is dividend tax due by state-owned enterprises, contractors, subcontractors and contractor parties?
The amendment to the Petroleum Act of 30 December 2022 stipulates that state-owned enterprises, contractors, subcontractors and contractor parties, insofar as relevant in the context of performing petroleum activities, are exempt from and are not subject to dividend tax for the duration of the petroleum agreement they entered into, on dividends in the following instances:
- dividends paid to non-Surinamese shareholders
- the transfer of profits to a foreign headquarters
- the remittance of dividend payments by non-Surinamese shareholders
12. Are stamp duties due by state-owned enterprises, contractors, subcontractors and contracting parties?
The amendment to the Petroleum Act of 30 December 2022 stipulates that state-owned enterprises, contractors, subcontractors and contractor parties, insofar as relevant in the context of performing petroleum activities, are exempt from and are not subject to stamp duties for the duration of the petroleum agreement they entered into in the following instances:
- the sale of an interest in a Petroleum Agreement
- the sale of the shares by a non-Surinamese shareholder
- the proceeds from the sale of such interests or shares
- the re-transfer of such proceeds
