API: PROPOSED TAX CHANGES WILL HURT U.S. OIL COMPANIES OPERATING ABROAD

摘要

The American Petroleum Institute (API) issued a statement on February 8 that warns legislators to steer away from redundant taxation for U.S. oil companies. API asserted that higher taxes would significantly alter how foreign payments by U.S.-based companies would be treated for U.S. income tax purposes, essentially subjecting them to double taxes on foreign operations. As a result, U.S. companies would face potentially lower returns investing in foreign oil and gas projects, would bid on fewer projects, and would successfully bid less often. "U.S. oil and natural gas companies will not be able to successfully compete against their foreign counterparts on many international energy development projects if longstanding rules on taxing foreign income are changed," API said.