(1) In accordance with section 71(4) of the Act, a person shall withhold tax as follows:

(a) where a contractor under a petroleum agreement sub-contracts part of the contract obligation to a sub-contractor, the contractor shall withhold tax when making payment to the sub-contractor for the works or services provided by the sub-contractor.

(b) where a sub-contractor under a petroleum agreement sub-contracts part of the obligations under the sub-contract, the sub-contractor shall withhold tax when making payment to the sub-sub-contractor for works and services provided by the sub-sub-contractor; or

(c) where a contractor under a petroleum agreement sub-contracts part of the contract obligation to a syndicate of sub-contractors, the contractor shall withhold tax from the aggregate amount when making payment to the syndicate.

(2) A payment to be made to a syndicate of sub-contractors under paragraph (c) of sub-regulation (1) shall be made to the leader of the syndicate for distribution among the members of the syndicate.

(3) A leader of a syndicate of sub-contractors shall withhold tax when distributing payment made by the contractor for works or services provided by members of the syndicate.

(4) Where a sub-contractor enters into a contract with a non-resident person under which contract the non-resident person is to provide works or services in connection with a petroleum agreement, the sub-contractor shall notify the Commissioner-General, in writing, within thirty days after entering  into the contract for the Commissioner-General to determine the tax treatment of the income of the non-resident person from  that contract in accordance with subsection (11)of section 116 of the Act.

(5) For purposes of this regulation, a “syndicate of sub-contractors” means a group of sub-contractors who have an agreement among themselves to provide works and services in respect of a project for a contractor under an arrangement where one of the sub-contractors serves as the lead sub-contractor.