The Authorities Have Increased the Deduction for Mineral Extraction Tax for the Samotlorskoye field
Russian President Vladimir Putin signed a law that increases the deduction for the mineral extraction tax (MET) for the Samotlorskoye field of Rosneft in the period from July 1, 2024 to December 31, 2026; the total amount of the increase should not exceed 16.6 billion rubles.
The relevant document is posted on the portal of the official publication of legal acts.
The tax deduction for the Samotlorskoye field is valid from 2018 to 2027 inclusive and amounts to 2.917 billion rubles per month, or 35 billion rubles per year.
The law increases the amount of this deduction by the value of the HB indicator, which the taxpayer determines independently for each tax period. At the same time, it cannot exceed 1.167 billion rubles per month from July 1 to December 31, 2024, 583 million rubles per month in 2025, 434 million per month in 2026. The total amount of such indicators determined by the taxpayer for all tax periods cannot exceed 16.6 billion rubles.
In April–December 2022, the MET deduction for the Samotlorskoye field was already increasing. Then an additional deduction was applied if the price of Urals oil in the tax period exceeded $ 44.2 per barrel. This was supposed to support the level of oil production in the flooded fields.
And for the Irkutsk Oil Company, the amount of the refund of the MET tax deduction and interest paid on MET for the period from 2025-2029 is excluded from the actual expenses on income added tax. This is done in order to “correctly calculate the obligations under the tax code, that is, to increase them,“ explained Deputy Head of the Ministry of Finance of the Russian Federation Alexey Sazanov. The deduction was granted for the period from July 1, 2022 to the end of this year in order to create new capacities for processing ethane or liquefied petroleum gas.
In addition, Sazanov said, double taxation of mineral extraction tax is excluded in the production of gas condensate, when it is pumped back into the reservoir to maintain reservoir pressure during the extraction of hydrocarbons. Moreover, starting from 2025, zero MET rates will apply for both combustible natural gas (with the exception of associated gas) and gas condensate pumped into the reservoir to maintain reservoir pressure during the extraction of any hydrocarbon raw materials.
The law, which contains other amendments, comes into force from the date of official publication, with the exception of norms for which other deadlines are set.
