Mineral Extraction Tax Cheat Sheet

taxes to enterprises

For the use of subsoil, the following payments are established:

1) one-time payments for the use of subsurface resources upon the occurrence of certain events specified in the license –

2) regular payments for the use of subsoil-

3) payment for geological information on subsoil-

4) fee for participation in the tender, auction-

5) license fee.

Production sharing agreements provide for the division of extracted raw materials between the Russian Federation and the subsoil user. Subsurface users acting as a party to such an agreement are exempted from levying certain taxes and other obligatory payments in the manner established by the legislation of the Russian Federation.

The procedure, size of payments for the use of subsoil and the conditions for the collection of such payments when fulfilling production sharing agreements are established by these agreements in accordance with the legislation in force at the date of signing the agreement.

One-time payments for the use of subsurface resources upon the occurrence of certain events specified in the license. Subsurface users who have obtained the right to use subsoil pay one-time payments for the use of subsoil upon the occurrence of certain events specified in the license (one-time payments for the use of subsoil).

The minimum (starting) amounts of one-time payments for the use of subsurface resources are set at a rate of at least 10% of the amount of the tax on mineral extraction, based on the average annual design capacity of the mining organization.

The final sizes of one-time payments for the use of subsoil are established by the results of a tender or auction and are fixed in the license for the use of subsoil.

One-time payments are made in the manner prescribed in the license for the use of subsoil.

The size of one-time payments for the use of subsurface resources, as well as the procedure for their payment when fulfilling production sharing agreements, are established in the production sharing agreement.

One-time payments for the use of subsurface resources upon the occurrence of certain events specified in the license are credited to the budgets of the federal and constituent entities of the Russian Federation in accordance with budget legislation.

Regular payments for the use of subsurface resources are levied for providing subsoil users with exclusive rights to search, evaluate, explore, and geologically study mineral deposits.

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