A Zero Mineral Extraction Tax Has Come Into Force For The Production of Gas Used For The Production of Hydrogen And Ammonia
On January 1, a law came into force establishing a zero rate of mineral extraction tax (MET) for the extraction of gas and (or) gas condensate in subsoil areas located wholly or partially on the Yamal and (or) Gydansky peninsulas in the Yamalo-Nenets Autonomous Okrug, used exclusively for the production of ammonia and/or hydrogen.
In addition, corporate income tax benefits have been established for ammonia and hydrogen producers. In particular, for taxpayers producing ammonia and (or) hydrogen at new production facilities (first put into operation after January 1, 2025), in relation to profits received from such activities, the laws of the constituent entities of the Russian Federation (regardless of the places of gas production) may a reduced tax rate is established for income tax subject to credit to the budgets of the constituent entities of the Russian Federation.
To apply a preferential tax rate, it is necessary to keep separate records of income and expenses within the framework of the mentioned activity.
Plans for gas production in the Yamal-Nenets Autonomous Okrug for the production of ammonia and hydrogen were announced by NOVATEK; the company is registering a subsidiary, Ob Ammonia, in the Murmansk region.
