DUBLIN: Ireland is set to significantly increase the maximum rate of tax on oil and gas production in new draft plans to be revealed on Thursday, according to a report.
The new petroleum production tax to be unveiled in the Finance Bill will see the maximum rate of tax levied on companies producing on Irish oil and gas fields in the future raised from 40% to 55%, the Irish Times newspaper reported.
There will be a minimum payment of 5% of annual gross revenues due once a field starts to produce, with the final rate of tax to be variable and ultimately to depend on the profitability of an individual field, it said.
The new tax legislation would replace the profit resource rent tax brought in under the 2008 Finance Act.
The aim of the new tax is to increase the financial return to the state from oil and gas exploitation as well as make producers pay tax earlier than under current arrangements, according to the newspaper.
The new rate would also be on top of the 25% corporation tax due from oil and gas companies’ profits from exploration.
The new tax and other measures are due to be announced on Thursday morning following
