Double taxation can pose a problematic financial burden on oil & gas industry players. This can be especially troublesome during periods of attempted growth, and can hinder pending transactions and corporate negotiations. Knowing how to manage double taxation, and using the best practices exemplified in the industry, can help reduce the impact on corporate finances and operative ability.
PwC is offering a webcast that offers strong insight into the leading practices for combating the risk of double taxation in the energy industry. “Managing double taxation: Leading practices for the oil and gas industry,” will be held on August 28th at 1:00PM Central Time.
Given the significant expansion of oil and gas companies globally, the need for industry players to align and coordinate local operations with corporate strategy has never been greater. As a result, the majority of US-based multinational energy companies incur significant general and administrative expenses related to headquarters services rendered on behalf of foreign affiliates.
Many tax authorities outside of the US are skeptical of these management charges—particularly those including a mark up—and aggressively challenge or disallow the deduction of the service fee for tax purposes at the local level completely. In many cases, these decisions are made by the foreign tax authority unilaterally and may result in a company being required to pay tax twice on the same income for the same period—in the local country which disallows the deduction and in the US where the counterparty to the transaction must report the income on its tax return and pay tax on that income.
It is critical that energy executives recognize the serious implications of these potential disallowances and take action to remedy the situation.
One hour of CPE credit will be offered to those individuals viewing the webcast live.
For more information on “Managing double taxation: Leading practices for the oil and gas industry,” click here.