Ireland to Increase Maximum Tax on Gas Companies from 40% to 55%

The Irish Government announced the introduction of a new "petroleum production tax" which will increase the maximum tax take on an producing field from 40% to 55%, explaining the new tax scheme for oil and gas operations.

‘Once a field starts producing oil or gas, a minimum payment of 5% of annual gross revenues will be due annually’ reads the Finance Bill 2015.  

The measure was anticipated by local newspapers on Wednesday, but it was not announced on Budget Day earlier this year. 

‘The ultimate rate of tax and amount due will be determined on a variable basis depending on the profitability of an individual field and will be payable in addition to the existing 25% rate of corporation tax that applies to the profits from oil and gas exploration,’ reads the note released on Thursday, explaining that companies will be also called to pay a minimum of 5% of annual gross revenues once a field starts production.