Comparative analysis of tax regimes Effectiveness in oil Production

Abstract

The paper deals with the problems of the method of comparative analysis of the tax regimes in the field of oil production in order to create instruments for making operational decisions on its basis by oil and gas companies. The author shows that for hard-to-recover reserves, when reducing coefficients apply to the MET rate (for the period of their validity), the basic taxation regime is more effective than the AIT regime. It also substantiates the expediency of conducting a comparative analysis of the tax regimes used in the production of hydrocarbons using the Discounted Petroleum Taxes (DPT) indicator, which reflects the discounted amount of taxes (in constant prices per 1 ton of oil) in periods corresponding to the validity of project documents for the development deposits and the term of the license for the use of subsoil. The author proposed the approach to a comparative assessment of the effectiveness subsoil plots to the AIT regime at increasing the efficiency and validity of tax planning in the oil and gas industry. The research used such general scientific principles and methods as systematization, analysis (including structural-dynamic), as well as deduction.