Assessment of the feasibility of applying an excess-profits tax from hydrocarbon production for deposits at the final stage of development

Larisa Rudneva,Olga Rudenok,Svetlana Larionova,R Apakashev,A Glebov,D Simisinov

doi:10.1051/e3sconf/202017705009

Abstract

The author's approaches to the feasibility of applying an excess-profits tax from hydrocarbon production to various types of deposits are reflected. The possibility of applying this tax in the operation of an oil field at the final stage of development is studied. A comparative assessment of the technical and economic performance of the field under consideration under the current and new tax regimes was carried out. Based on the modeling of scenarios for the development of the world oil market, its parameters have been determined, under which the development of the field using the new tax regime will ensure economic and budgetary efficiency.

Highlights

Taxation of hydrocarbon production in the Russian Federation has always been the subject of disputes and discussions among government officials, scientists and practitioners
Since it affects the interests of the state, which budget is largely formed from tax revenues from oil and gas companies, and subsoil users themselves, whose sustainable development opportunities depend on the size of paid taxes on oil and gas production
The theoretical and methodological basis of the study was the work of scientists and practitioners in the field of taxation of oil production in the Russian Federation, as well as regulatory documents reflecting the introduction of a excess-profit tax from hydrocarbon production in the Russian Federation

Summary

Introduction

Taxation of hydrocarbon production in the Russian Federation has always been the subject of disputes and discussions among government officials, scientists and practitioners. Since it affects the interests of the state, which budget is largely formed from tax revenues from oil and gas companies, and subsoil users themselves, whose sustainable development opportunities depend on the size of paid taxes on oil and gas production. The excess-profit tax from the production of hydrocarbons (EPT) introduced in the Russian Federation from 01.01.2019 is based on taxation of the economic results of oil companies, which corresponds to the global trend It does not imply the extension on the entire industry due to the current inexpediency of completely eliminating taxation of the gross income of oil companies. The aim of this work is to justify the need and feasibility of expanding the scope of EPT for oil production in connection with a change in the current macroeconomic situation in the subsoil area that are not included in the group of "pilot" projects, but meeting the requirements of article 333.45 of the Tax Code of the Russian Federation

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Results