Venezuelas New Oil Tax Takes Effectadmin
Venezuela began taking a bigger cut of foreign oil companies’ windfall profits, as a higher tax on those earnings went into effect.
Under a law approved Tuesday by the National Assembly, President Hugo Chavez’s government is charging a 50 percent tax on additional earnings when crude prices pass $70 per-barrel and 60 percent on additional earnings when prices top $100 per barrel — based on the monthly average price of benchmark Brent crude.
The new levy is on top of income taxes currently set at 50 percent for foreign oil companies. The amounts paid will be deductible from the oil companies’ income tax payments.
Major oil companies operating in Venezuela include Total SA, Chevron Corp., BP PLC and StatoilHydro ASA.