United Arab Emirates : taxation of contractors in the oil and gas sector - a case study

A western company (WestCo) is subcontracted by an oil company from host country (e.g. the national oil company) to build an oil rig (either onshore or offshore) in the host country. The activities that will be conducted by WestCo include the design, construction and transport of the oil platform to the location. WestCo is also considering subcontracting part of these activities to a subcontractor who is resident in host country. The entire project is to be completed in approx. 200 days, and for the purposes of this case study, it is presumed that WestCo is a resident of one of the following countries: France, the Netherlands, the United Kingdom or the United States.