Norway’s Petroleum Geo-Services (PGS) has entered into an agreement with the tax authorities of Rio de Janeiro in Brazil to settle all ongoing disputes related to municipal services tax (ISS) on the licensing of multi-client data.
According to PGS, it has decided to settle all the ongoing ISS disputes under the circumstances that the municipality of Rio de Janeiro recently published new regulations for ISS relating to licensing of multi-client data, which specifically require 2% ISS to be paid on multi-client licensing.
PGS and municipality of Rio de Janeiro have together applied with the court for the withdrawal of the lawsuits and the release of the amounts deposited as escrow.
Under the settlement, PGS will pay to cover all historical periods and exposures relating to ISS on MultiClient licensing up to today which will see it receive around $55m back from its deposit made before the end of this year.
