CC BY
24PROBLEMS OF TAXATION OF OIL AND GAS COMPANIES
PhD Kashirina M. V.
Korshunova D. D.
Russia, Moscow, Financial University under the Government of the Russian Federation
Abstract. This article discusses the main problems of taxation of oil and gas, factors offalling export revenues from oil and gas sales, the way of effective tax policies for high-quality and sustainable development of Russian oil and gas sector, the impact of competitive environment to reduce the cost of oil companies.
Keywords: Oil, gas, natural resources tax, customs duty, export revenue, tax reform, innovative technology.
Oil - is the main resource of the modern world. But oil and gas - is a renewable resources or not? And what will happen if these natural resources will not be? Many scholars argue that the postulate that dominates now and dominated all the time - a non-renewable oil and gas resources -false. Scientists say that if the deposit is exhausted leave for 5 years and 5 years not to produce oil and gas from this field, and to develop other fields, that means that the field is naturally reduced and after 5 years again can begin production, and further continue this process. Scientists compared the process with crop rotation - the maintenance of the field. The oil and gas industry of Russia will occupy a central place in the Russian economy over the years. Therefore, it is the raw material vector should determine the direction of economic policy, as well as to promote and ensure the development of other industries. Impact of oil and gas significantly in many areas of the country's economic activity and is in close relationship with all sectors of the economy. Today, natural resources are used inefficiently, without taking into account the factor of exhaustion. State interests are not always properly protected. In turn, the users of natural resources are no incentives for their rational use. This paralyzes the economic climate in the Russian Federation, leading to instability in the economy.
Let us analyze part of oil and gas revenues of the federal budget of the Russian Federation. If we consider the annual report on the federal budget for 2014 and pay attention to taxes on fuel oil and natural gas, gas condensate without considering, then making elementary calculations, we conclude that the share of these taxes in the federal budget is 22.18 % - not bad, considering the fact that these taxes are direct.
Table 1.
2014 year
Taxes, fees and regular payments for the use of natural resources 2 884 618 200 233,77
Severance tax 2 857 963 405 772,95
Oil 2 463 561 154 721,28
Flammable natural gas from all types of hydrocarbon deposits 357 232 341 042,74
"REPORT ON IMPLEMENTATION OF THE FEDERAL BUDGET as of 1 January 2015".1 But do not forget about the problems arising from the taxation of oil and gas. And one of the main factors causing this problem - exports and the pricing of oil and gas in both domestic and foreign markets.
Russian oil revenues from oil exports decreased by 8.6% in 2014, but despite this, oil companies could reduce their payments to the state. The current tax system is based on the two taxes -mineral extraction tax and export customs duties. Bids these taxes vary annually, but the tax rate remains unchanged.
For example:
1 http://www.roskazna.ru/
The rate of severance tax in 2015 amounted to 857 rubles. by m., in order to calculate the tax amount is multiplied by a coefficient Kc, depending on world oil prices, which is determined by the formula:
^=^-15)*P/261
(y- the price of Urals crude oil, P- US dollar against the ruble)
The rate of customs duty is also installed depending on the price of oil Urals brand.
Table 2.
Urals price, USD. / T The rate of customs duty, USD. / T
^109,5 0
109,5<U,<146 0,35*(U,-109,5)
146<U,<182,5 12,78+0,45*(U,-146)
185,5<U, 29,2+0,42*(U,-185,5)
The rate of customs duties, depending on the price of oil2
The joint application of the customs duty and mineral extraction tax leads to a high marginal tax rate of the price of rent. With the price of oil above $ 25 per barrel, the state receives almost the entire increase in revenue from exports. At the same time it remains less than $ 20 per barrel at the disposal of the oil companies; at a price of $ 60 per barrel, this value is $ 17 per barrel.
According to the Tax Code in 2015, with growth Morki Urals oil price at $ 1 per ton increased MET 857/261 / 7.3 = $ 0.45 per ton. The export duty is increased by 42%; from this comes that the price increases $ 1 per ton, the tax burden will be 0.45 + 0.42 = $ 0.87 per ton. As a result, the state receives 82% of the increase in oil prices, excluding tax pribyl.Po this form of calculation, the tax eats up almost the entire income from the increase in oil prices that may not like oil companies.
Another factor -reduction oil exports. For comparison: in 2013 the export was sent to 228 million tons, in 2014 - 213.7 million tonnes.
Yet the main factor of falling export earnings from oil sales by 8.6% - a reduction in the average annual price tag of a barrel around (compared with 2013 godom- in 2013 the average price for oil was $ 107 per barrel)
• on 10%. (In 2014 it amounted to about $ 97 per barrel)
• on 49.5% (in 2015 the average price was 53.61 dollars per barrel)
Also, other factors intervene, in particular, the tax maneuver, which became operational in 2015. He will conclude that the tax is levied buduts revenue rather than profit3.
Tax maneuver in the initial stage involves an increase in revenue. And then there is already leveling, in some cases, the oil can start to benefit from it. Therefore, due to the difficult market conditions in 2016 the tax maneuver to some extent help to smooth the loss of exports. In addition, with proper monetary policy of the ruble devaluation will also smooth the budget losses from declining revenues on the sale of oil.
Thus, if in 2014 Russia's budget in fact received less windfall from oil exports, here in 2015, not only did not have the means to put them into reserves, but the budget will lose revenues, already reserved for specific budget expenditures in connection what will not increase funding for many social programs. As the deterioration of the situation can be corrected budget, pressed down, reduced the cost of certain infrastructure projects, but without cutting social spending.
Consider a situation with gas. One of the reasons why in 2015 Gazprom received from gas sales abroad by 15.7% less than in 2014 - the fall in the volume of deliveries. During the reporting period Gazprom has reduced gas export by 9.8% to 158.7 billion cubic meters against 176 billion cubic meters a year ranee.Tak also be noted that in Russia, not all settlements are gasified, thereby reducing domestic gas consumption. Plans for gasification of the Far East and Siberia postponed indefinitely. Experts argue that the gasification of eastern Russian regions are very costly. The total gas reserves in the east of the country are estimated at about 70 trillion cm, with Siberia and Far East,
2 Tax Code of the Russian Federation
3 The business newspaper "Sight" - Russia Revenues from oil and gas exports fall
which account for over 60% of the entire territory of Russia, is still supplied with gas by about 12%, while the western part of the country by 75%.
Another reason for falling export earnings Gazprom - at a lower price of gas in comparison with the one that was in 2013. But it's not in the falling gas prices, on the basis of which, as we know, gas prices are calculated in long-term contracts Gazprom. Oil prices have not affected the gas prices for Gazprom's contracts, since the price is based on the average oil price in the previous 9 months. This is due to discounts, which Gazprom has provided to its customers, primarily European. The average price for Russian gas in 2014 was reduced by approximately 10% from 2013.
Over the past two years system of taxation of oil and gas has undergone significant changes as a transition from a flat, uniform tax rate on mining to a complex formula that takes into account the specific conditions of production of hydrocarbons. These changes are reflected in the tax reform adopted in late 2014. Besides the differentiations formulas tax on mining for oil and gas production, also increased the basic rate of tax and reduced export duties on oil. For the most part the current taxation was aggravating for nedpropolzovateley, especially the oil-producing companies, which contradicts the task of stimulating production and entails risks to reduce the production and development of new deposits.
Each year, the Tax Code changes are made, but the nature of these innovations in the oil and gas production does not fully meet modern requirements - virtually all new deposits are being developed or will be developed under the exemption from the basic tax system. But the number and size of benefits for new areas do not eliminate the problem of the so-called production approach, in which all tax innovations are implemented. At the same time, a significant portion of all benefits is individual in nature and linked to the activities of a particular company in a particular area. All this characterizes the taxation of the oil and gas sector as a haphazard and does not meet modern requirements and challenges. Thus, the causes of the current unfavorable situation in the oil and gas industry in Russia are rooted not so much in the deterioration of the geological resources of hydrocarbons and in the development of objective difficulties, but in the formidable institutional barriers and wrong government policies.
In the gas sector and there have been changes in taxation - in a differentiated severance tax formula, began to have effect July 1, 2014 additional factors were introduced. As before, there are stakes introduced in July 2013, production of fuel gas and gas condensate: 76 - 42 rubles per 1 ton of gas condensate produced from all types of hydrocarbon deposits. Differential formula for the gas industry was introduced September 30, 2013 №263-FZ, and included a whole range of formulas allows you to distribute the tax burden, depending on several factors: the price of gas, the cost of transportation and storage of gas, the rate of export duty and the price gas condensate, linked to international crude oil prices, geographical location of subsurface area, depletion of reserves, the depth and characteristics of the development of deposits.
In order to stimulate new offshore projects April 12, 2012 the government adopted a decree № 443-p, also suggesting a gradation project complexity, based on the geographical location. Among the major innovations - the liberation of companies extracting hydrocarbons on new offshore fields from the export duty, the introduction of ad valorem rates of the mineral extraction tax depending on the category of complexity. The ultimate goal of tax innovations is the beginning of an active exploration of hydrocarbons in the region, with estimated reserves of 100 billion tons of fuel equivalent. At the same time, further steps will be determined taking into account the agreements reached between the Russian Federation, Belarus and Kazakhstan on the principles of the functioning of the common markets of oil and petroleum products within the Common Economic Space.
For high-quality and sustainable development of the oil and gas sector in Russia to solve the tax problems just is not enough. An integrated approach, where the effective tax policy will be one of the key components.
• Firstly: the state needs to maintain a stable dynamics of hydrocarbon production through the development and increasing use of innovative technologies.
• Second, to create conditions for the development of deep processing of oil, natural gas, gas condensate and associated gas priority petrochemical industries.
• Third, to form the progressive development of domestic high-tech oilfield services sector, including the development of industries and production for machine building to meet the needs of all segments of the oil and gas industry.
To promote the intensive development of the industry will be a real competitive environment, which has prompted the company to reduce costs for, including through the development and use of innovative technologies. The State is required to create the conditions under which any of the oil companies would be able to maintain and increase market share only by maintaining its market competitiveness, that is, being at least not less effective than others, and not by the law of force, or by privilege, received from the state. Thus, it is necessary to change the current trend of oil and gas companies to the risk-free transactions, such as mergers and acquisitions, sale of assets in the direction of development of new deposits with a large number of risks and costs, including for the development and purchase of innovative technologies. This will increase the commercial and financial performance, as well as the volume of production through the introduction of technological and other innovations that enhance the resource base and help reduce costs.
Introduction of innovative technologies to reduce the cost of oil and gas companies to a level that eliminates the tax benefits. In this case, increase performance indicators of oil companies and minimize the budgetary losses due to tax benefits. Also, for a total reduction of mineral extraction cost share of knowledge-based component will tend to increase, thus reducing the costs will have a pronounced multiplicative effect on the economy of the majority of industries, including engineering and R & D. In connection with this, the government needs to stimulate subsoil users to the funding and development of science and technology, exploration and research; to carry out regular monitoring of the effectiveness and validity of the applied technical solutions and to strengthen the role of technical control procedures in the application of new scientific and technological solutions
REFERENCES
1. The report on the federal budget as of 1 January 2015 ".
2. Tax Code
3. The business newspaper "Sight" - Income from the Russian oil and gas exports fall
4. Kashirina M.V. Actual issues of taxation of the oil sector in Russia // Innovations and investments. - 2015. - №4. - P. 75-80.
5. Kashirina M.V. The new declaration for the mineral extraction tax. Accounting in construction // "Aktion Group Chief Accountant". - 2015. - №9. - P. 14-25.
