Mozambique receives tax on profit of sale of Ireland’s Cove Energy

11 September 2012

The Mozambican government has received US$175 million resulting from applying a 12.8 percent tax on the profits from the sale of Irish company Cove Energy to Thai state group PTT Exploration & Production, the country’s Finance Minister said.

According to the Mozambican press, during the meeting of the Coordinating Council of the Finance Ministry, held last week, Minister Manuel Chang said that that amount had been received Thursday.

The Tributary Authority charged Corporate Income Tax (IRPS), which has a rate of 32 percent.

However, as Cove Energy was still at a stage of investment, Mozambique’s tax legislation outlines reducing that rate to just 12.8 percent, which was applied in this case.

Thai state group PTT Exploration & Production offered US$1.9 billion for 100 percent of Cove Energy, the main asset of which was an 8.5 percent stake in an oil block in the Rovuma Basin, northern Mozambique. (macauhub)