Reform of the subsoil users taxation system
KAZENERGY Association takes active part in reforming the subsoil users taxation system.

The new Tax Code that came into force in early 2018 includes the following provisions proposed by the Association:

  • cancellation of the commercial discovery bonus in 2019;
  • introduction of an alternative subsoil use tax (AST) instead of a charge for past costs compensation, mineral extraction tax, export rental tax and excess profit tax.
  • Voluntary choice. It applies to oil and gas fields with a depth of 5 thousand meters and more; offshore fields;
  • expenses for exploration before oil and gas production can be taken into account in another contract, where production began (25% depreciation). Earlier, in case of unsuccessful exploration, expenses were not taken into account in taxes;
  • income from sale of crude gas on the domestic market to the national operator within the government’s pre-emption right will be determined in accordance with the actual selling price;
  • income from sale of oil for export, if the world oil price is below cost, will be determined in accordance with the actual selling price;
  • deductions of subsoil user's expenses for training, advanced training or retraining of own employees will be determined in accordance with the actual costs.


The new provisions should lead to:
  • stimulation of an increase in investment in oil and gas exploration, reserves growth;
  • intensification of new field developments in the Caspian Sea shelf and super deep fields.
НОВЫЙ НАЛОГОВЫЙ КОДЕКС И КОДЕКС О НЕДРАХ И НЕДРОПОЛЬЗОВАНИИ