Oil & Gas
Withholding Tax on Service Contractor Payments
Withholding tax on payments to foreign drilling and oilfield service companies.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Payable (Foreign Contractor) | Liability (-) | 5,000,000.00 | - |
| Withholding Tax Payable (Petroleum Authority) | Liability (+) | - | 250,000.00 |
| Cash / Bank | Asset (-) | - | 4,750,000.00 |
💡 Accountant's Note
Payments to foreign oilfield service companies (Schlumberger, Halliburton, Baker Hughes) are typically subject to WHT. The applicable rate depends on the host country's tax law and any relevant double taxation treaty.
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