Will moving from a tax-neutral jurisdiction to a taxable jurisdiction affect Transoceans financial results?
We believe the Redomestication should improve our ability to maintain a competitive worldwide effective corporate tax rate. Swiss taxation of holding companies is premised on a so-called participation exemption, which generally eliminates tax at the holding company level on income earned by operating subsidiaries, as well as dividends paid to the holding company by operating subsidiaries.Switzerland enjoys relationships, via tax treaties and otherwise, with the United States, the European Union and a number of other countries where Transocean has major operations.
