The government’s approach to its declining hydrocarbon industry has historically been measured and fair. However, the amendments to the "Climate Emergency Bill" cause concern, despite providing some relief to its O&G segment. That more draconian measures are planned, significant risks are prevalent. Consequently, the outlook remains Uncertain.
April 17, 2023
Europe - North West
Western Europe, occupying five-sixths of the island of Ireland in the North Atlantic Ocean, west of Great Britain.
Ireland’s O&G fiscal regime consists of corporation tax, a profit resource rent tax ("PRRT") and a petroleum production tax ("PPT"). PRRT is not deductible for corporation tax purposes and only applies only to exploration licenses and reserved area licenses awarded on or after 1 January 2007. PPT is deductible for corporation tax purposes and is not liable of licences that are subject to PRRT.
The Irish government treats all firms incorporated in Ireland on an equal basis. Ireland’s judicial system is transparent and upholds the sanctity of contracts, as well as laws affecting foreign investment. Conversely, Ireland’s ability to attract investment are often marred by relatively high labour and operating costs (such as for energy); skilled-labour shortages; licensing and permitting challenges (e.g., for zoning, rezoning, project permissions, etc.) Eurozone-risk; infrastructure in need of investment (such as in transportation, affordable housing, energy and broadband internet); high income tax rates; uncertainty in EU policies on some regulatory matters; and absolute price levels among the highest in Europe.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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