Russia’s Mining Fiscal Regime: H2 2014

Russia has a range of natural resources, including oil fields, coal deposits and numerous strategic minerals. The mining industry in Russia is governed by the Ministry of Natural Resources and Environment of the Russian Federation, as well as the Federal Agency on Mineral Resources. The Subsoil Law is the main law regulating mining activity in the country.

Scope

The report outlines Russia's governing bodies, governing laws, business licenses, rights and obligations and tax-related information, including one-time payments, severance tax, corporate income tax, transport tax, property tax, local taxes, depreciation, tax incentives, withholding tax, loss carry forward and VAT.

Key Highlights

• The Ministry of Energy is a federal executive body responsible for drafting and implementing government policy and legal regulation in sectors including oil and fuel, electric power, renewable energy and hydrocarbons.

• The Federal Agency for Mineral Resources is a federal body of executive authority responsible for providing state services, managing state property, and legal regulation in the sphere of subsoil.

• The Ministry of Natural Resources and Environment of the Russian Federation is a federal executive body responsible for formulating government policy and legal regulation in the field of the exploration, use, reproduction and protection of natural resources.

• The Subsoil Law is the main law in the mining industry, providing all relevant laws and regulations regarding subsoil use in the Russian Federation. Other regional laws on subsoil also apply to the mining industry.

Reasons to buy

Gain an overview of Russia's mining fiscal regime.

Companies mentioned

Table of Contents

1 Executive Summary 1

2 The Russian Mining Industry – Governing Bodies 7

2.1 Ministry of Energy of the Russian Federation 7

2.2 Federal Agency for Mineral Resources 7

2.3 Ministry of Natural Resources and Environment of the Russian Federation 7

2.4 Federal Service for Environmental, Technological, and Nuclear Surveillance 7

2.5 Federal Service for Surveillance in the Sphere of Nature Use 7

3 The Russian Mining Industry – Governing Laws 8

4 The Russian Mining Industry – Ownership and Business Licenses 9

4.1 Subsoil Ownership 9

4.2 Business Licenses 9

4.2.1 License for the geological exploration and assessment of a subsoil plot 9

4.2.2 Production license 9

4.2.3 Combined geological research, exploration and production license 9

4.2.4 Termination of license 9

5 The Russian Mining Industry – Rights and Obligations 10

5.1 Rights 10

5.2 Obligations 10

6 The Russian Mining Industry – Key Fiscal Terms 11

6.1 One-Time Payments, Rents and Fees 11

6.2 Severance Tax 11

6.2.1 Tax Base 11

6.2.2 Tax Rates 11

6.3 Corporate Income Tax 12

6.4 Transport Tax 12

6.5 Property Tax 12

6.6 Local Taxes: Tax on Land 12

6.7 Depreciation 12

6.8 Tax Incentive 13

6.9 Withholding Tax 13

6.10 Loss Carry Forward 13

6.11 Value Added Tax (VAT) 13

7 Appendix 14

7.1 What is this Report About? 14

7.2 Methodology 14

7.3 Secondary Research 14

7.4 Primary Research 15

7.5 Contact GlobalData 15

7.6 About GlobalData 15

7.7 GlobalData’s Services 16

7.8 Disclaimer 17

List of Tables

Table 1: The Mining Industry in Russia – Fiscal Regime Terms and Other Taxes 1

Table 2: The Mining Industry in Russia – Severance Tax on Coal (RUB/ton), 2014 11

Table 3: The Mining Industry in Russia – Severance Tax on Minerals (Other than Coal), 2014 11

Table 4: The Mining Industry in Russia – Transportation Tax Rates (%), 2014 12

Table 5: The Mining Industry in Russia – Depreciation Groups and Rates, 2014 13

Table 6: The Mining Industry in Russia – Withholding Taxes (%), 2014 13

List of Figures

Figure 1: The Mining Industry in Russia – Commodity Mines at Different Stages (Number of Mines), 2014 2

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