IADC petitions Indonesian tax authorities

IADC has written the Indonesian director general of tax to urge the consistent application of Indonesia’s “deemed profits” regime for offshore drilling contractors. Over many years, IADC has worked with the Indonesian government to establish a reliable taxation system for members operating in that country. As recently as 2005, an IADC delegation visited Jakarta to update that regime, which was successfully completed.

A recent audit of an IADC member company, however, raises concerns that regulatory authorities may not be observing settled agreements with IADC on the tax regime. IADC senior vice president – government affairs Brian Petty then wrote a letter supporting the contractor’s position.

It emphasized that IADC has enjoyed a long history of cooperation with the Indonesian Tax Administration, with a positive and open path of communication between the parties. It also asked authorities to consider a contractor’s appeal of its audit in light of the “long-standing agreement between IADC and the Tax Administration” and its “vital importance to our industry group and therefore other member companies.”

For more information, please contact Brian Petty at 1/202-293-0670 (brian.petty@iadc.org).