U.S./Overseas Tax Analysis
In this report, Wood Mackenzie evaluates the economics of a typical upstream development in 14 countries. The after-tax return for a US based oil and natural gas company under each fiscal system is compared with the after-tax return of 'In-Country' producers in each country. Under the proposed changes to the dual capacity taxpayer rules, US based oil and gas companies would face an additional or residual US tax burden that they do not currently face. This additional US tax will reduce the after-tax value and returns from overseas projects. This could make US investors less able to acquire or develop overseas opportunities economically, compared to competitors who do not face a similar additional domestic tax burden.