Section 13 Extension of charge to income tax to profits and income derived from activities carried on and employments exercised on the Continental Shelf

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(1) In this section and in Schedule 1-

"designated area" means an area designated by order under section 2 of the Continental Shelf Act, 1968;

"exploration or exploitation activities" means activities carried on in connection with the exploration or exploitation of so much of the sea bed and subsoil and their natural resources as is situated in the State or in a designated area;

"exploration or exploitation rights" means rights to assets to be produced by exploration or exploitation activities or to interests in or to the benefit of such assets.

Are offshore exploration activities regarded are carried on in Ireland?

(1) Exploration or exploitation activities are activities relating to exploration or exploitation of the sea bed and its natural resources either within Irish territorial waters or a designated area, i.e., a block on the Continental Shelf in which th...

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(2) Any profits or gains from exploration or exploitation activities carried on in a designated area or from exploration or exploitation rights shall be treated for income tax purposes as profits or gains from activities or property in the State.

How are offshore exploration activities in a designated area treated?

(2) If you are an offshore oil or exploration company operating in a designated area, you are treated as carrying on your activity within the Republic of Ireland.

(3) Any profits or gains arising to any person not resident in the State from exploration or exploitation activities carried on in the State or in a designated area or from exploration or exploitation rights shall be treated for income tax purposes as profits or gains of a trade carried on by that person in the State through a branch or agency.

Are profits from offshore exploration activities subject to Irish tax?

(3) If you are a non-Irish-resident company engaged in offshore oil or exploration activity, you are treated as carrying on your activity through a branch or agency within the Republic of Ireland.

(4) Where exploration or exploitation activities are carried on by a person on behalf of the holder of a licence or lease granted under the Petroleum and Other Minerals Development Act, 1960, such holder shall, for the purpose of an assessment to income tax, be deemed to be the agent of that person.

Amendments

Subs (4) substituted by Finance Act 2001 section 44(a).

How am I taxed if I hold an exploration licence but don't carry on the exploration activity?

(4) if you hold a licence for exploration or exploitation activities, you are regarded for tax purposes as the agent of the person who carries out the exploration or exploitation activity on your behalf.

(5) Any emoluments from an office or employment in respect of duties performed in a designated area in connection with exploration or exploitation activities shall be treated for income tax purposes as emoluments in respect of duties performed in the State.

Are offshore rig employees subject to Irish tax?

(5) If you have employees working on an offshore exploration platforms on the Continental Shelf, they are regarded as working in the Republic of Ireland and caught for PAYE)....

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(6) Schedule 1 shall apply for the purpose of supplementing this section.

How is tax collected from offshore licence holders?

(6) The detailed rules in Schedule 1 regarding information to be provided to the inspector and collection of tax apply to such licence holders.