Ukraine's Ministry of Finance has proposed reducing royalties for commercial gas production from 55 percent to 29 percent (with the well depth being less than 5 km) and from 28 percent to 14 percent (for deeper wells) from Oct. 1, 2015, according to the presentation of the tax reform developed by the authority.
The ministry also proposed introducing even lower royalties for gas extraction 20 and 10 percent (depending on the depth of wells) from 2018. As planned by the authorities, together with the decrease in royalties from Jan. 1, 2018 extra charge on income tax will come into force. It is also planned to introduce a system of advance payments for extra charge on income tax.
As reported, the Finance Ministry’s tax proposals are to be considered by the National Reforms Council on Aug. 27.
