Tax treatment of materials provided by the employer in EPC projects
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Dear sea friends, whether it is a general contract or a subcontract, the issue of materials supplied by the client inevitably arises. How is taxation handled for this part? Can it save on construction costs without violating **tax laws?
If you are the client, it’s of course you who has to pay the taxes; if you are the supplier or simply just take the materials, then there’s no such issue. As for avoiding taxes in a way that doesn’t violate tax laws, that’s not possible, unless you don’t want to comply with the laws. Tax evasion is another matter.