Section 899, part of the bill promoted by Donald Trump, introduces a new tax that threatens directly impact the income of foreign companies with operations in the country.
For Trump, whose rhetoric has revolved around the United States energy domain, this measure could be counterproductive if it reduces foreign investment in one of the most strategic sectors.
The energy domain promoted by Trump requires investment, technology and a global network of companies that are committed to expand their operations in US territory.
However, the implementation of this standard could scare away the key actors who have contributed to position the United States as one of the world leaders in oil and gas production.
What is section 899 and why it generates controversy
Section 899 proposes to apply an additional tax of up to 20â € ¯% on income as dividends and giftsIas obtained by foreign investors. This initiative is part of the Trump administration protectionist approach, which seeks to respond to what it considers discriminatory taxes applied by other countries, especially in the European Union and the United Kingdom.
The new tribute not only seeks Correct international tax imbalancesbut also penalize jurisdictions that, from the point of view of the US government, harm national companies with unjust fiscal policies.
The problem is that this policy could harm foreign energy companies that, paradoxically, have contributed to the energy boom that Trump celebrates so much.
Affected companies
Section 899 is emerging as a threat to large multinationals such as Shell, BP, Total energy y Repsolall with massive investments in the United States. These companies have invested billions in energy infrastructurefrom refineries to service stations and liquefied natural gas projects (LNG).
For example, BP allocated 40â € ¯% of its capital expenditure to projects in the United States, which also represent a third of its global workforce. Shell, on the other hand, obtains more than 20â € ¯% of its income from the US market and maintains key operations in the Gulf of Mexico.
Impact on Trump’s energy domain
The paradox is clear: a fiscal measure designed to protect US companies could weaken the competitiveness of their own energy sector. The energy domain, promoted as one of the pillars of the Trump administration, relies on the country’s ability to attract and retain international capital. If the fiscal environment becomes less favorable, these investments could look for new destinations.
This change would also come in a context in which Other regions have already lost attractiveness for large oil companies. Russia, for example, ceased to be a viable option after the sanctions derived from the invasion of Ukraine. Middle East imposes strong restrictions on foreign investments and Europe, with strict environmental regulations and limited resources, nor does it offer great opportunities.
Alternatives for energy companies
Faced with the new fiscal scenario, multinational companies could choose to diversify their capital towards countries with more predictable environments. Brazil, Mozambique, Canada and Namibia are emerging as viable options to redirect resources, thanks to its abundance of natural resources and expanding regulatory frameworks.
Another possibility would be the transfer of corporate headquarters to the United Statesa decision that would imply a great financial effort, in addition to political and legal complexities. Shell, for example, already considered in the past a movement in that direction to increase the value of his actions, although he abandoned the idea in the face of operational difficulties.
Fiscal instability and business confidence
Large investments in the energy sector require long -term vision, legal certainty and stable game rules. Projects such as oil fields or LNG plants are developed in decades horizons, so any tax alteration generates uncertainty in business advice.
Section 899 could erode that confidence, as already happened during the Biden administration, when the permission of the Keystone XL pipeline was revoked and new BLPs were frozen for climate reasons.