Bill on tax incentives for investors in Arctic been adopted in the first reading
The bill provides for a less tax rate for subsoil users in the Arctic
Yakutia 24 TV channel: State Duma adopted amendments to the Tax Code in the first reading, providing for incentives for investors who plan to implement new projects in the Arctic territories.
Amendments to the Tax Code are optimization of the Mineral extraction tax (MET) for organizations, extracting hydrocarbon raw materials from new offshore fields.
It is supposed to set the mineral extraction tax rate at 5% of revenue for 15 years. The bill sets a zero severance tax rate for the extraction of gas condensate together with combustible natural gas, produced and used exclusively for the production of liquefied natural gas or for the production of petrochemical products, at new production capacities up to a production volume of 250 billion cubic meters.
Such a rate will be applied provided that the subsoil plot using term does not exceed 12 years from the date of sale of petrochemical products for the plots located north of the Arctic Circle: within the boundaries of the Arkhangelsk Region, the Komi Republic, the Yamalo-Nenets Autonomous District, Krasnoyarsk Territory, Yakutia, Chukotka Autonomous Okrug.