Contracting in the Oil & Gas sector is a highly qualified well paid vocation that covers virtually the whole globe when it comes to location sites.
Due to the enormous scope of territories this can make it a very complex field to deal with when it comes to salary payment, taxes and paperwork with each job varying significantly in its requirements.
The rules and regulations of each country have to be examined in depth in order to properly understand the tax requirements. For instance when drilling in the part of the continental shelf that comes under the UK a foreign contractor working there will need to be held accountable to UK taxes, but domestic legislation can be overridden by some Double Taxation Treaties (DTT). The UK has DTT’s with a large number of countries and whilst most of these have a definition including the continental shelf of the UK it does not apply to all. This is just one example, but clearly illustrates the obstacles that Oil & Gas Contractors face as opposed to Contractors in more run of the mill professions.
There are several types of companies that employ Oil & Gas Contractors;
– Operating Companies. These hold the exploration and production licences and are usually household names and large international companies
– Drilling Companies. These maintain the rigs and do the drilling work
– Major Contractors. These provide the staff for the operations and maintenance work
– FPSO Operators. These operate and maintain the floating production storage and offloading units
– Service Companies. These provide specialist assistance
Depending on their level of expertise and experience Oil & Gas Contractors can expect to earn between £300 – £2,000 per day. This is also very variable depending on the supply and demand and is normally open to negotiation.
So there are many factors to be taken into account when calculating your tax, i.e. ;
– Your country/residence
– The location of the rig/installation
– Time spent on the rig
– Employers residence
Chesterfield are able to offer you expert advice when it comes to negotiating all these obstacles to ensure that you are fully tax compliant whilst you are also getting the optimum take home pay. We offer several solutions to assist with this including
– invoicing services/Payroll
– self-employed schemes
– offshore companies
Chesterfield understand that you want to make the most of your time as well as your money without the additional headache and offer a dedicated member of staff as point of contact to assist you with this.
For more information please follow the link below or call us on our offices Telephone Number: 44 20 7097 1385 Contact Us