Russian bill on excess profits tax provides for installment plan for large payments in 2027-2028; base price will be indexed
MOSCOW. Oct 1 (Interfax) - The amount of the tax on excess profits of companies will be determined as the product of the extracted mineral resource and the amount by which its average price on the world market exceeds the average price for 2025, according to the draft federal law on the excess profits tax submitted by the Russian government to the State Duma.
At the same time, for 2027 and 2028, the average price for 2025 will be indexed using coefficients of 1.1 and 1.21, respectively. The obligation to pay the tax arises only if the average price is exceeded by at least 10%.
The tax will apply to commodity ores of ferrous metals (iron, manganese, chromium), non-ferrous metals (aluminum, copper, nickel, cobalt, lead, zinc, tin, tungsten, molybdenum, antimony, magnesium), multicomponent complex ores, as well as mining and chemical non-metallic raw materials (apatite-nepheline and phosphorite ores, potassium salts, boron ores), mining and chemical raw materials containing metals (apatite-staffelite, apatite-magnetite, low-iron apatite ores) and intermediate products containing one or more precious metals (gold, silver, platinum, palladium, iridium, rhodium, ruthenium).
The tax rate in the general case is set at 30%, and with respect to gold it is set at 20%.
Payment of the tax is envisaged in 2027-2029 no later than April 28 of the corresponding year.
However, the draft law provides for a special procedure for paying the tax in 2027 and 2028. If the amount of tax payable in 2027 exceeds 4% of the company's revenue from the sale of mineral resources, the amount within this value is subject to payment no later than April 28, 2027, and the amount of the excess is subject to payment no later than April 28, 2029. With respect to the tax payable in 2028, a similar procedure is applied using a value equal to 5% of revenue, while the amount of the excess is also subject to payment no later than April 28, 2029.
