Oil and Gas Tax Terms

Upstream Petroleum Tax

The tax regime, which applies to upstream petroleum activities (oil and gas exploration and production), is set out mainly in the Taxes Consolidation Act, 1997 as amended.

The tax terms applying to a specific petroleum authorisation (e.g. a licensing option, exploration licence or petroleum lease) will depend upon the date of issue of that petroleum authorisation.

 

Year​Terms
​1975​Corporation Tax 50%, Royalties 12.5%, production bonuses and a right to State Participation
​1987​Royalties abolished plus no State participation
​1992​Corporation Tax rate reduced to 25%
​2007​Additional Profit Resource Rent Tax of 5% to 15% introduced and linked to profitability of discoveries
​2014​Petroleum Production Tax (PPT) introduced, replacing Profit Resource Rent Tax in respect of new authorisations. PPT to apply at variable rate of 0% to 40% linked to profitability of discoveries. Minimum annual PPT payment of 5% the gross revenues of a field once production has commenced. PPT permitted as a deduction from Corporation Tax. Marginal tax take rises from 40% to 55%

 

2014 Review of Irelands Upstream Petroleum Tax Terms

On 18 June 2014 the Minister for Communications, Energy and Natural Resources, announced changes to the tax terms for upstream petroleum activities following on the Wood Mackenzie Review. These changes are detailed in the press release issued on that date.

The revised tax terms have been implemented by way of Section 20 of the Finance Act 2015, enacted on 21 December 2015, and will apply in the case of authorisations first awarded from 18 June 2014 

Archive

2007 Review of Irish Petroleum E&P Licensing Terms - Indecon Report.