30 Mar 2022 18:50

Rosgeo proposes extending preferential taxation to all geological exploration through 2024

MOSCOW. March 30 (Interfax) - State exploration holding RosGeo has proposed introducing preferential taxation for geological exploration works through 2024, according to a letter seen by Interfax which the holding sent to the Economic Development Ministry.

It is expected that the introduction of preferences similar to those provided for offshore exploration [application of a multiplying coefficient of 1.5 when calculating costs, reducing profit tax payments] will stimulate investment in exploration and help ensure the stability of exploration companies amid sanctions pressure.

In regards to entities engaged in subsoil exploration and prospecting, RosGeo also considers it necessary to clarify the procedure for accounting for expenses for the development of natural resources, consolidation of the tax base for junior projects, and consolidation of expenses incurred at one field and the financial result obtained at another field. At the same time, the company proposes that deferrals of profit tax be granted until the moment of production.

To support import substitution, it has been proposed that subsidies and tax incentives be provided for manufacturers of exploration equipment. RosGeo is also advocating for the creation of a preferential leasing program for the purchase of Russian-made products.

Among the top-priority anti-crisis measures in general, RosGeo suggests suspending anti-dumping duties on certain imported goods for six months and introducing a moratorium on bankruptcy proceedings at the request of creditors.

With respect to government orders, the company insists on the need to advance contracts in the amount of 50-80% and to revise the rules for writing off penalties accrued to the supplier, urges customers not to demand bank guarantees for return of the advance and performance of the contract from backbone enterprises and from contractors that are 100% state-controlled. It is being proposed that the term of payment for delivered products, work and services be reduced to 7 days.

RosGeo also believes it is important to launch a program of preferential lending to systemically important enterprises in a difficult situation (to replenish working capital) and to create a mechanism of gradual adaptation of interest rates on loans with floating rates to changes in the key rate.

In total, RosGeo proposed about 40 anti-crisis measures, including support for SMEs, stimulating the development of domestic information technology, accelerating budget procedures, stabilizing the situation on financial markets, reducing regulatory costs for domestic entrepreneurs and others.