Taxes & Incentives for Hydrocarbons Sector

Taxes & Incentives for Hydrocarbons Sector

The Petroleum Act provides special incentives to oil companies, contractors and subcontractors.

One of these incentives regards the exemption from import and export duties for the import (and export) of capital assets. Another incentive regards the exemption from import duties for the household effects of personnel of a contractor. The exemption from import and export duties as meant in the Petroleum Act 1990, does not apply to the goods mentioned in the attachment of this State Decree. According to the State Decree of May 4, 2005/52 Staatsolie is fully exempted from payment of statistic and consent duties due, with regard to the import and export of goods for activities in the concession area that falls in the petroleum agreement and that in a calendar year does not exceed USD 300,000. With respect to the contractor, as mentioned in the State Decree, the above also applies. If one Contractor is party to several petroleum agreements, the statistic and consent duties due will be determined per petroleum agreement.

a. Rental value tax

Under the name “Rental Value Tax” Act (Huurwaarde belasting) a tax is levied on the owner of a building or owner of a right in rem of a building (type of real estate tax).

For buildings standing on domain land which have been rented out, the landlord owes the tax. In case there is more than one entitled person to a specific building, the entitled parties shall, at the request of the Inspector, designate one person liable for this tax by mutual agreement.

The tax is due based on an assessment raised by the Inspector of Direct Taxes. Every 3 years the rental value is determined by the Inspector of Direct Taxes, based on the situation of that building at the beginning of that year. In case of a rented building, the rental value is determined based on the amount of the rental annual income. The tax is levied at a rate of 6 % of the rental value.

The total rental value of buildings in own use is set at 1 (one) percent of the free sale value; for determining this rental value, the free sale value is reduced by SRD 50,000. For rented buildings, the annual rental income applies as rental value, insofar as this rental income does not amount to less than 1 (one) percent of the free sale value.

The tax is due within 5 months after the assessment is raised.

Please note that according to the law some buildings and establishments are exempt from the tax.

2019-12-16T11:28:32-03:00Monday 16 December 2019|EITI Suriname Report 2016|