Taxes in Azerbaijan: mining tax.

1. taxpayers - taxpayers - individuals and legal entities extracting minerals from the subsoil in the territory of the Republic of Azerbaijan, including the Azerbaijani sector of the Caspian Sea, are payers of mining tax. 2. tax object - all minerals extracted from the subsoil in the territory of Azerbaijan (crude oil, natural gas, metals, non-metallic minerals, etc.) are subject to mining tax. 3. taxable base: depending on the type of mineral extracted: for crude oil – quantity in tons. for natural gas and condensate – thousand cubic meters. for metals – wholesale price. for non-metallic minerals – cubic meters. during oil and gas production, the amount of oil and gas reinjected into the well for technological purposes is deducted from the taxable base within the established norms. 4. taxable period - the reporting period is monthly; mining tax is calculated on a monthly basis. 5. tax rate: crude oil – 12 manats per ton. natural gas and condensate – 15 manats per thousand cubic meters. all types of metals – 3 percent of the wholesale price. non-metallic minerals – from 0.04 manat to 10 manats per cubic meter, depending on the type. 6. tax calculation procedure: the tax is calculated by applying the relevant tax rate to the volume of extracted minerals or to the wholesale price. for oil and gas, the reinjected volume within normative limits is deducted when determining the taxable base. for minerals other than oil and gas, the mining tax calculated for the calendar year may be reduced in the last reporting month of the year, provided it does not exceed the amount of land tax assessed and paid for the respective land plots. 7. tax payment procedure and timing: mining tax is calculated monthly and must be paid to the state budget no later than the 20th day of the month following the month of extraction. the tax return must also be submitted to the tax authority no later than the 20th day of the month following the reporting month. brief note: mining tax is a special tax applied to the extraction of mineral resources. the rate depends on the type of resource extracted. key factors are the extracted volume, the type of resource and (for metals) the wholesale price.