Finance Act 2015 introduces a new regime for petroleum production tax. The tax has been applied since 2007 at rates from 0% to 15% of the field’s taxable income. It applies on a basis similar to corporation tax and is supplemental to corporation tax at the 15% rate.<\/p>\n
The 2015 Act provides for petroleum production tax, which replaces profit resource rent tax in the case of licences granted after 18th June 2014. Petroleum production tax applies in addition to corporation tax, which is payable at 25%. It is deductible against profits of oil or gas activities.<\/p>\n
It applies on a field-by-field basis and does not take into account allowances or losses on non-field-related activity. The tax is charged on the greater of 5% of the field less transportation cost, or it may rate it serving on a sliding scale between 10 and 40% on the basis of the scheme’s profitability. The profitability ratio is the cumulative gross revenue of each field divided by the cumulative cost of that same field for each period.<\/p>\n
Where the factor is more than 4.5, the PPT applies to 5% of gross revenue minus transport costs or 40% of income. In the case of less than 1.5 it is 10% of net income. Between 1.5 and 4.5 it is based on a formula scale. PPT is allowed as a deduction in the computation of corporation tax.<\/p>\n
Expenditure in respect of a taxable field may be surrendered to other group companies provided there is a 100% relationship.<\/p>\n\n
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Mineral Oil Tax The mineral oil tax was brought into effect on 1 January 2000.\u00a0 It replaces the older excise duties on oils, which had its origins in the 1930s when customs were imposed on imported oil and on domestically produced products. These duties were replaced by import excise duties, and a common rate structure […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[115],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/12051"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=12051"}],"version-history":[{"count":9,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/12051\/revisions"}],"predecessor-version":[{"id":32688,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/12051\/revisions\/32688"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=12051"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=12051"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=12051"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}