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

Article 742. The order for calculating the tax

1. The amount of the mineral extraction tax payable to the state budget is determined on the basis of a taxable item, tax base and tax rate.

2. To calculate the mineral extraction tax, within a calendar year, a subsoil user applies a rate that corresponds to the planned production volume for a current taxable year for each individual subsoil use contract, in accordance with the scale given in Article 743 of this Code.

In this case, in case of assignment (transfer) of subsoil use right under a subsoil use contract, it is necessary to apply the mineral extraction tax rate corresponding to the declared total annual production volume under such subsoil use contract, irrespective of the fact of assignment (transfer) of the subsoil use right.

To ensure correct calculation and full payment of the mineral extraction tax to the state budget, before January 20 of a current calendar year, the authorized body for hydrocarbons submits to the tax authority information on the planned volumes of hydrocarbon production with respect to subsoil users for the forthcoming year for each individual subsoil use contract.

3. If, based on the results of a reporting calendar year, the actual volume of hydrocarbons produced under a subsoil use contract does not correspond to the planned volume under such a contract and requires to alter the rate of the mineral extraction tax, a subsoil user is obliged to adjust the amount of the mineral extraction tax calculated for a reporting year.

The amount of the mineral extraction tax is adjusted in a declaration for the last taxable period of a reporting taxable year by applying the mineral extraction tax rate, corresponding to the actual volume of produced hydrocarbons determined in accordance with Article 743 of this Code, to the tax base calculated in tax declarations of the mineral extraction tax for 1 - 3 quarters of a reporting taxable year.

The amount of the mineral extraction tax with account of the adjustment made is a tax obligation for the mineral extraction tax for the last taxable period of a reporting year.