6.5. Mining tax optimization
Enterprises that pay mineral extraction tax (MET) can optimize it using the profitable cost accounting method. The optimization of the tax base for mineral extraction tax is based on one of the options for the formation of the estimated value of the extracted minerals (Chapter 26 of the Tax Code of the Russian Federation).
The costs of production and sale of products are divided into two groups – direct and indirect (paragraph 1 of article 318 of the Tax Code). The list of direct costs in tax legislation is closed. Indirect are all other expenses incurred by the taxpayer during the reporting period, with the exception of non-operating expenses. Moreover, indirect costs are fully written off in the reporting period.
The specifics of calculating the tax base for mineral extraction tax is based on the technological process of extraction of raw materials and production of products from it, which include several stages, for example: 1) mining of rock and its delivery to the primary processing workshop; 2) primary processing (processing to obtain products according to state standards quality) – 3) secondary processing (further processing to obtain the final product).
For payers of this tax, the main element of tax policy is the method of determining the amount of extracted minerals (paragraphs 1, 2 of article 339 of the Tax Code of the Russian Federation):
– direct method, i.e. using measuring tools and devices-
– by an indirect method, i.e., by calculation, according to the data on the content of the extracted mineral in the mineral raw materials extracted from the bowels.
The selected method is applied throughout the entire period of the activity of mining. You can only adjust this method if you change the technology used to extract minerals.
Assessment of the cost of extracted minerals is determined in one of 3 ways:
– based on the prevailing prices for the taxpayer for the relevant tax period,
– based on the prevailing prices of the extracted mineral for the taxpayer for the corresponding tax period,