New Irish tax regime unveiled, top rate raised to 55 percent

Pat Rabbitte, Ireland’s energy minister, has introduced a proposal to increase Irish offshore tax rates.

The proposed rules will provide a higher tax take for the state, ensuring earlier revenue from developed fields, Rabbitte said at a Dublin conference.

The proposed rules would charge taxes on a field by field basis, adjusted according to the profitability and net profits from the field.

A 5% minimum royalty tax would be imposed.

The minister said the revised rates should ensure that the rates are higher than an existing profit resource rent tax, resulting in a maximum rate of 55% for new offshore licenses.

The current maximum rate is 40%.

The existing 25% corporation tax related to petroleum production would remain unchanged.