The Ministry of Finance of the Russian Federation has prepared amendments to the Tax Code, according to which oil companies in the YaNAO will be able to receive a tax credit in the form of a tax deduction for the mineral extraction tax (hereinafter referred to as MET). This was reported in the official telegram channel of the department.
“The Russian Ministry of Finance has prepared a change in the current procedure for determining Russian oil quotations used to calculate taxes. <...> It is proposed to provide an opportunity to provide a tax credit to companies producing hydrocarbons in Yamal by applying a tax deduction for the mineral extraction tax, ”the Ministry of Finance reports.
It is clarified that the tax deduction can be received for the period from April 1, 2023 to March 31, 2029 for fixed assets that are acquired for the implementation of the infrastructure construction project for the transportation of liquid hydrocarbons produced in Yamal. The refund of the tax credit will be made from April 1, 2029 to March 31, 2035 inclusive, with the payment of the amount of accrued interest.
Earlier, URA.RU reported that the Ministry of Finance of the Russian Federation proposed to set a zero tax rate in the Yamalo-Nenets Autonomous Okrug for the extraction of minerals needed for the production of ammonia and hydrogen. These changes will apply to projects introduced from 2025.