Report: Oil Companies to Pay 50% Tax in 2005 Fiscal Year

Venezuela's Seniat tax authority says that private oil companies in operating agreements with state oil firm PDVSA must pay their 2005 taxes at the 50% rate and not the 34% rate contemplated in the tax code for service companies, newspaper El Universal reported.

The companies began 2005 by paying taxes at 34%, arguing they were providing a service to PDVSA, but they "made an incorrect interpretation of the legal framework in effect," the paper quoted Seniat official Noel González as saying.

In April 2005 Seniat notified the companies the payments should have been made under the 50% rate established by the hydrocarbons law, the paper reported.

Seniat is already questioning the taxes paid by private oil companies in the 2001-2004 period. A number of companies have already been presented with claims corresponding to allegedly unpaid taxes for the period.

Seniat singled out 21 foreign oil companies last year as owing the government a total US$3bn and plans to complete the process of serving the companies with claims corresponding to the 2000-2004 period by end-January 2006, a Seniat official told BNamericas in November.

Eight companies have already been served with claims, including Brazil's Petrobras, French firms Total and Perenco, Italy's Eni, Japan's Teikoku, Anglo-Dutch major Shell, Spain's Repsol YPF and Texas-based Harvest-Vinccler.

The only company that has paid any money towards their claim is Harvest. Shell and Eni have introduced legal recourses to have their cases reviewed.

About Business News Americas: Business News Americas is a multilingual news and business information service that covers the most important original stories in 11 different business sectors throughout Latin America everyday. Visit BNamericas to access our real-time news reports, 7-year archive, Fact File company database, and latest research reports.

Click here for a Free two week trial to our Latin America Oil & Gas information service.

Related Companies
 Company: Petrobrasmore info


 - Petrobras Raises Asset Sale Goal To $21B For 2017-2018 Period (Mar 22)
 - Petrobras Resorts To Top Court To Free Divestment Plan (Mar 17)
 - CFO: Brazil's Petrobras Confident Accounting Practices Correct (Mar 8)
 Company: Shellmore info


 - Gulf Of Mexico Lease Sale Nets $315M in Bids, Feds Suggest Trump Bounce (Mar 22)
 - Norway Awards 56 Oil And Gas Licences In Mature Areas (Jan 17)
 - Southern North Sea Special Interest Group Launched (Nov 21)
 Company: Total S.A.more info
 - Total Starts Up Moho Nord Deep Offshore Project (Mar 15)
 - Chevron Commences Oil, Gas Production from Angola Project (Mar 9)
 - Oil Majors Still Years From Repairing Balance Sheets After Price War (Mar 8)
 Company: PDVSAmore info


 - Venezuela PDVSA Says In Grace Period For 2035 Bond (Nov 22)
 - Venezuela's PDVSA Reaches $1.45B In Finance Deals With Oil Firms (Nov 4)
 - US Said to Be Closing In on PDVSA-Linked Seizures, Charges (Oct 25)
 Company: ENImore info


 - Nigerian Court Overturns Seizure Of Oilfield From Shell And Eni (Mar 17)
 - Zohr to Start Gas Production This Year (Mar 15)
 - ExxonMobil Agrees to Buy 25% Stake in Mozambique's Area 4 Block (Mar 9)
 Company: Repsol more info
 - Spain's Repsol Aims To Cut Debt By A Further 16% In 2017 (Feb 23)
 - Poll: US, Foreign Oil Companies to Prosper in Trump's USA (Nov 10)
 - European Industry Says Trump Must Define Energy Policy (Nov 9)
 Company: Perencomore info


 - Reports: Offshore Gas Worker Dies in North Sea Incident (Dec 7)
 - BP: Potential Gas Play Could Open Up New Phase of North Sea Development (Dec 6)
 - Golar, Perenco Reach Agreement on Commercial Terms of Cameroon FLNG Project (Jul 1)
 Company: Teikoku Oilmore info
 - Petrobras: $535 Million In Ecuador Investments On Hold (Apr 8)
 - Teikoku Acquires 35% Stake in Block 31 Offshore Suriname (Aug 29)
 - Venezuela to Resume Offshore E&P Gas Licensing (Jan 25)
 Company: Harvest-Vincclermore info
 - Harvest Agrees to Comply with Tax Rates (Nov 17)
 - Tax Authority Asks for US$15mn from Five Oil Companies (Sep 8)
 - Harvest and CVP Sign MOU Defining Assets for Venezuelan Mixed Company (Aug 21)
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE


Most Popular Articles


From the Career Center
Jobs that may interest you
Landman - Midstream Surface Land
Expertise: Landman
Location: The Woodlands, TX
 
Land Specialist - Delaware Basin
Expertise: Landman
Location: Midland, TX
 
Health & Safety Compliance Specialist III
Expertise: Environmental, Safety & Training|HSE Manager / Advisor|Regulatory Compliance
Location: Ignacio, CO
 
search for more jobs

Brent Crude Oil : $50.56/BBL 0.15%
Light Crude Oil : $47.7/BBL 0.70%
Natural Gas : $3.05/MMBtu 1.32%
Updated in last 24 hours