Fields with Heavy Oil were Transferred to the Third Group of AIT
New amendments to the Tax Code regarding the taxation of oil companies will come into force in 2024. This is stated in the Federal Law No. 389 published today.
Areas with extra-viscous (EVO) and high-viscosity oil are transferred to the payment of income tax on the third group of AIT, Interfax reports. At these fields, at least 70% of the oil produced per year should have a viscosity of 200 to 10 thousand mPa*s, as well as 10 thousand mPa*s or more (under reservoir conditions).
To stimulate the production of extra-viscous and high-viscosity oil, the maximum amount of unit costs has been increased by 1,000 rubles. For other sections, unit costs are set at 7140 rubles.
When discussing this value in the State Duma, the head of the Duma Budget Committee, Andrey MAKAROV, suggested that the Ministry of Finance of the Russian Federation return to this topic based on the results of the first half of 2024. Deputy Finance Minister Alexei SAZANOV agreed with this.
In addition, for the third group of deposits, the tax deduction start date is postponed from 2024 to 2027. Also, until the end of 2026, restrictions on the reduction of the tax base as a result of the recognition of losses are extended.
For tax periods from January 1, 2021 to December 31, 2026 (previously – 2023) inclusive, the tax base for the current tax period cannot be reduced by the amount of losses (including historical) incurred in previous reporting periods, more than than 50%
The possibility for the taxpayer to correct historical losses on value added tax outside the first tax period after the transition to AIT is excluded.
The adopted law transfers three subsoil plots in the Khanty-Mansiysk Autonomous Okrug to AIT. These are the Petelinskoye and Fainskoye oil fields of Rosneft, as well as the Kirsko-Kottynskoye oil field of the Bashneft company (part of Rosneft). As a result, the number of sites of the third group (brownfields) of AIT will expand from 69 to 72.
This group includes sites in the Tyumen region, the Khanty-Mansi Autonomous Okrug-Yugra, the Yamalo-Nenets Autonomous Okrug (YaNAO), the Komi Republic. At the same time, the degree of depletion of oil reserves can be from 20% to 80% as of January 1, 2017, or from 10% to 80% as of January 1, 2017, if the site has been developed for more than six years.
The third group also includes sites in the North Caucasian Federal District and on Sakhalin. Viscous and extra-viscous oil in Russia is mainly produced by Tatneft, LUKOIL and Rosneft.
