Mike Patrick, executive officer of PEANZ says that it is seeking to reduce or eliminate the tax complexity for rig operators which adds to mobilization and demobilization costs. Currently non-resident contractors New Zealand income tax if they stay in New Zealand waters for more than 182 days in any rolling 365-day period.
PEANZ has asked for similar tax treatment as luxury yachtsman now get, namely no income tax until contractors have spent a consecutive 365 days in local waters over any 2 years. This would encourage rigs to drill multi-well programs for longer than 6 months.
Meanwhile, Swift Energy New Zealand CEO Don Morgan and Westech Energy (NZ) director Kevin Johnson have been re-elected as chairman and vice-chairman of PEANZ to serve a second one-year term.
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