Investment Portal of the Arctic Zone of the Russian Federation
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Tax deduction available for investors in the Arctic

A taxpayer who has received the status of a resident of the Russian Arctic zone can reduce the amount of mineral extraction tax by the amount of the tax deduction, determined by a special formula.

26 2020

The tax deduction will be applied for new subsoil plots. A 'new subsoil plot' will refer to a plot completely located within the Russian Arctic zone, with a degree of the mineral reserve depletion less than or equal to 0.01% as of 1 January 2021 The tax deduction shall be applied to each type of extracted minerals separately.

The tax deduction shall apply from 1 January 2021 through 31 December 2032.

The 'amount of tax deduction' will refer to the amount of expenses actually paid by the taxpayer starting on 1 January 2021 to the last day of the tax period in which the tax deduction is applied for the acquisition, construction, manufacture, delivery of facilities, and bringing such facilities to a state in which they are suitable for use. The tax deduction is also provided for expenses under utility connection agreements, investment contracts and similar agreements with organisations involved in the construction and operation of facilities. The amount of tax deduction may not exceed 50% of the amount of tax payable in the tax period in which the tax deduction is applied.

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