On taxes and other obligatory payments to the budget (Tax Code)

Article 757. Gross annual income under a subsoil use contract for the purposes of calculating the excess profits tax

1. A subsoil user determines gross annual income for the purposes of calculating the excess profits tax for contract activity under each individual subsoil use contract in the manner established by this Code to determine total annual income, except for income provided for in Articles 228, 234 and 235 of this Code, defined in accordance with paragraph 2 of this article.

2. For the purposes of calculating the excess profits tax, the income provided for in Articles 234 and 235 of this Code shall be determined as the amount of full value of sale, transfer and disposal of the assets specified in Articles 258, 259 and 270 of this Code.

The income provided for in Article 228 of this Code shall be determined as the amount of full value of sale, transfer and disposal of the assets specified in Articles 258, 259 and 270 of this Code in case of allocating the value of these assets to deductibles for the purposes of calculating the excess profits tax.

The amount of income from the sale of assets specified in Article 228 of this Code, the value of which shall not be allocated to deductibles for the purposes of calculating the excess profits tax, is determined in accordance with Article 228 of this Code.
Article 758. Deductions for the purposes of calculating the excess profits tax

1. For the purposes of calculating the excess profits tax, the deductions for each individual subsoil use contract are determined as the sum of:

1) expenses to be allocated to deductibles for the purposes of calculating corporate income tax on contract activity in a reporting taxable period in accordance with Articles 242 - 248, 252 - 257, 261 - 263 and 272 of this Code;

2) expenses actually incurred within a taxable period to be included in:

value balances of groups (subgroups) of fixed assets;

separate groups of depreciable assets formed in accordance with Articles 258, 259 and 260 of this Code.

In this case, the costs of acquiring total and (or) indirect fixed assets for the purposes of calculating the excess profits tax are to be allocated to deductibles by the share of direct expenses, attributable to each specific subsoil use contract and non-contract activity, in the total amount of direct expenses incurred by a subsoil user for a taxable period.

2. For the purposes of calculating the excess profits tax for the 2018 taxable period, the amount, accumulated for the purposes of calculating the excess profits tax, that shall be allocated to deductibles for the purposes of calculating the excess profits tax from January 1, 2009 to January 1, 2018, but not allocated thereto, shall be deducted only once.

3. If same types of expenses are provided for in several types of deductions established by this article, these expenses shall be deducted only once when calculating taxable income.