Finance Act 1992 - Summary of Provisions Relating to Petroleum Taxation
The special tax regime, which applies to upstream petroleum activities is set out in the Taxes Consolidation Act, 1997 as amended by the Finance Act, 1999.
Under the Finance Act 1992 a special rate of corporation tax of 25% was introduced in respect of income arising by virtue of Petroleum Leases granted before certain dates. The Minister for Finance announced in 1999 his intention to reduce the standard rate of Corporation Tax to 12.5% by the year 2003. However, under the Finance Act, 1999 this reduction will not apply to profits from the exploitation of oil and gas resources which will continue to attract 25%.
Profits and gains arising from petroleum exploration and development are subject to Corporation Tax and Capital Gains Tax, as set out in Finance Act 1992, Summary of provisions of the Act.
There is no State royalty of any form. There is no State participation of any form.