A mineral extraction tax deduction can be provided from 2021 for oil production in Yamal and Tatarstan

A mineral extraction tax deduction can be provided from 2021 for oil production in Yamal and Tatarstan

A mineral extraction tax deduction can be provided from 2021 for oil production in Yamal and Tatarstan

Companies will be able to receive a tax deduction for the severance tax when extracting super-viscous oil in Tatarstan (the main developer is Tatneft (MCX: TATN)) and when extracting oil within the boundaries of the Yamal region of the Yamal-Nenets Autonomous Okrug, it follows from the draft law on adjusting parameters that was finalized for the second reading NDD, which was reviewed by Interfax.

A deduction will be provided if the price of Urals oil in the tax period (month) exceeds the base oil price established by the Budget Code of the Russian Federation (in 2021 $ 43.4 per barrel). The exemption does not apply if the oil price is below the base price. The threshold value of the deduction from the start of application is set at 36 billion rubles.

Leave a Reply

Your email address will not be published. Required fields are marked *