Taxation of subsoil users under the New Tax Code. Almat Daumov GRATA Law Firm Almaty, March 2 7 , 200 9. Content. Tax regime prior January 1, 2009 New Tax Code Comparative analysis of tax burden changes Tax regime stability issues of early concluded contracts
GRATA Law Firm
Almaty, March 27, 2009
Calculation tax base for Royalty and Rent Tax takes account for subsoil user’s expenses
Calculation tax base for MRPT and Rent Tax does not take account for subsoil user’s expenses
In accordance with data of Ministry of Economy the increase in tax burden is from 49 to 62% (at crude oil price $60 for barrel).
At this no provision that tax regime stability guarantee for the contracts concluded before January 1, 2004 is cancelled.
From the legal point of view, tax regime under the New Tax Code might apply to subsoil user only in cases of making inserting respective changes to the contract in part of tax regime.
Partner GRATA Law Firm
Director Tax Law Department