标签： Suriname

In a recent response to counterarguments put forward by Siegfried Kenswil LLM, Suriname-based fiscal and legal advisor Roy Shyamnarain has stood firm on his original core position: compliance with Article 19 of Suriname’s Petroleum Law directly shapes the tax treatment of oil and gas (O&G) contractors operating in the country. Shyamnarain argues that despite extensive rhetoric, tangential references, and misattribution of claims in Kenswil’s rebuttal, the original conclusion remains entirely valid.

To clarify the scope and impact of Article 19, Shyamnarain emphasizes that the provision must be interpreted in conjunction with other key sections of the Petroleum Law, including Articles 1(b), 1(g), 11, and 20. When read as a cohesive legal framework, the text makes clear that the mandatory requirement for contractors to establish and legally register a local office in Suriname creates formal tax residency for that local entity. This tax obligation in turn dictates that taxable income for the contractor’s local office is calculated as total revenue generated from PSC activities minus eligible expenses directly tied to work conducted under that petroleum agreement.

The text of Article 19 itself lays out two core requirements: first, all contractors must maintain a permanent office in Paramaribo to carry out activities stemming from their petroleum agreement; second, this office must be registered in full compliance with national legal regulations. Article 20 of the law further requires that all areas covered by petroleum agreements are defined as individually numbered blocks, which leads to a critical tax implication: only revenue and expenses linked to operations within a single defined block can be counted when calculating a contractor’s taxable income. This means statutory rules limit cost deductions exclusively to expenses incurred for work within the specific block outlined in the contractor’s PSC, as required by Article 20. Article 11 of the law confirms that all provisions of Chapter IV, which includes Articles 19 and 20, apply to every existing petroleum agreement in the country.

Addressing a key argument from Kenswil that regulators have not historically enforced the requirement, Shyamnarain notes that non-enforcement of a regulation does not invalidate it or create legal rights for parties that fail to comply. The obligation to maintain a registered local office rests solely with the contractor, and inaction from Staatsolie, the Surinamese government, or the national tax service to date does not erase this requirement. Sooner or later, all contractors must meet this compliance obligation fully, he argues.

Shyamnarain adds that contractors actually have multiple flexible legal pathways to meet the local office requirement, based on his professional experience advising firms in the sector. The first option is for contractors to directly register a local branch of their existing foreign entity. The second is to establish a new locally incorporated subsidiary, transfer all PSC obligations to that subsidiary in line with Article 16 of the Petroleum Law and Article 44 of the model PSC, and have the subsidiary operate as the legal successor to the original contractor. The third option is to establish a foreign subsidiary, transfer PSC obligations to that entity under the same legal provisions, then have the foreign subsidiary register a local branch in Suriname to act as legal successor. The choice between these structures depends on the specific operational and financial circumstances of each contractor.

Contrary to claims that this interpretation represents new policy or evolving legal standards that conflict with existing agreements, Shyamnarain stresses that Article 19 has contained clear, unchanged language since the earliest PSCs were signed. This longstanding rule does not contradict the terms of any existing agreements, and contractors have always been aware of this obligation. This is explicitly confirmed in Article 35.1 of the standard model PSC, which states: “Pursuant to Article 19 of the Petroleum Law of 1990, Contractor and/or Operator shall have a legal representative in Suriname and maintain an office in Suriname for the purpose of carrying out Contractor’s responsibilities under this Contract. Any such office and/or representative(s) shall be registered as required by Applicable Law.”

In closing, Shyamnarain reiterates that full compliance with Article 19 means tax deductions for an O&G contractor’s taxable income are limited to only those expenses tied to operations within the specific block for which the contractor is required to maintain a local Suriname office. Whether this practice is labeled “fiscal ringfencing” or not is irrelevant; the law is clear on this requirement, he says. He adds that Article 19.2.1 of the model PSC further confirms that contractors acknowledge this tax framework, as it explicitly outlines that taxable income and expenses are calculated exclusively for activities tied to the specific contract, with all tax calculations aligned with the national Petroleum Law and Income Tax Act.

Closing with a pointed note, Shyamnarain says the unnecessary debate over this clear legal provision serves its own unstated purpose, and that no further discussion is needed on the matter.

During a plenary session of the National Assembly on July 23, the leader of the Surinamese National Party (NPS) parliamentary faction, Jerrel Pawiroredjo, delivered a urgent call to the national government, demanding an immediate temporary freeze on all special benefits and allowances allocated to executive teams and boards of commissioners at state-owned enterprises. The request comes after repeated public reports of unjustified extravagant spending within state-controlled and government-linked institutions, most notably the acquisition of luxury official vehicles priced at over $100,000 each.

Opening his address during the routine current affairs segment at the start of the assembly meeting, Pawiroredjo emphasized that newly uncovered information confirms irresponsible, unregulated practices continue to take place across state-owned entities. He told lawmakers he has received credible intelligence indicating that multiple senior executives have moved forward with purchasing high-end vehicles without first securing required approval from their organizations’ boards of commissioners. In other state-owned firms, leadership are actively planning to acquire new luxury vehicles for top management, adding to the mounting unnecessary public expenditure, he added.

Against this backdrop, the NPS faction leader argued that senior leadership at state-backed companies are obligated to demonstrate fiscal discipline and restraint, particularly at a time when the nation faces broader economic and social challenges. He reiterated that the temporary freeze on all executive benefits and amenities should remain in place until comprehensive oversight reforms can be implemented to curb wasteful spending of public funds.

Pawiroredjo began his address with notes of measured praise for two separate government initiatives and actions. First, he commended the authorities’ ongoing work to address the issue of homelessness, highlighting recent reports that the national Vagrant Brigade has successfully taken nearly 60 unhoused people off the street. That said, he emphasized that policy efforts in this area should shift focus from simply removing unhoused people from public view to providing sustained social care, mental health support, and long-term reintegration guidance to help individuals rebuild stable lives.

He also extended praise to the country’s top two elected officials — President Jennifer Simons and Vice President Gregory Rusland — for their modest approach to official travel and security. Pawiroredjo noted that the pair do not rely on large, resource-heavy motorcades for daily travel, setting a positive example of public restraint that should be replicated across all levels of government. He called on all cabinet ministers to follow the president and vice president’s lead, adopting more moderate practices when it comes to their own use of official vehicles and security convoys to reduce unnecessary public spending.

On July 23, Suriname’s National Assembly (DNA) began consideration of a draft bill that would pave the way for the South American nation to join the Second Optional Protocol to the International Covenant on Civil and Political Rights (ICCPR), a United Nations agreement focused on permanently eliminating capital punishment.

Adopted by the UN General Assembly in 1989, the Second Optional Protocol binds all participating states to legally commit to ending all use of the death penalty. Signatory nations are prohibited from carrying out executions, and are barred from reintroducing capital punishment into their national legal systems, with only extremely narrow exceptions permitted under the treaty’s terms.

While Suriname has not executed any prisoners or applied the death penalty in judicial proceedings for decades, accession to the protocol would enshrine the country’s de facto abolition as a binding international legal obligation. This creates an additional layer of legal protection that prevents future governments from reversing the current practice and reinstating capital punishment, aligned with the limited reservations allowed under the protocol for accession states.

Suriname is already a full party to the core International Covenant on Civil and Political Rights, a foundational human rights treaty that codifies fundamental protections including the right to life, the right to a fair trial, and other core civil and political guarantees for all citizens. The Second Optional Protocol is a supplementary agreement that builds on these core commitments, with its sole focus being the permanent abolition of the death penalty globally.

If the draft bill receives final approval from the National Assembly, the move will mark another significant milestone in Suriname’s implementation of its international human rights obligations. For years, the United Nations and global human rights monitoring bodies have repeatedly urged all countries that still retain capital punishment in their legislation to join this protocol and advance global abolition efforts.

Per the official DNA agenda, the draft bill will be debated at a public plenary session scheduled to begin at 10:00 a.m. local time on Thursday. Preparatory review of the legislation has already been completed by a special committee of rapporteurs led by chair Ebu Jones, with additional members including Dew Sharman, Jennifer Vreedzaam, Iona Edwards, Hakiem Lalmohamed, Genevievre Jordan and Poetini Atompai.