International Accounting

Abstracting and Indexing

Referativny Zhurnal VINITI RAS
Google Scholar

Online available



Cyberleninka (24 month OA embargo)

Updating the profit taxation in the oil and gas industry: Prospects for profit-based tax

Vol. 21, Iss. 8, AUGUST 2018

PDF  Article PDF Version

Received: 13 December 2017

Received in revised form: 27 December 2017

Accepted: 23 January 2018

Available online: 15 August 2018

Subject Heading: Tax and taxation

JEL Classification: Н21, Н22, Н23, Н25

Pages: 917–926

Roshchupkina V.V. North Caucasian Federal University, Stavropol, Stavropol Krai, Russian Federation

Importance The existing economic conditions in the world in general and in the Russian Federation in particular necessitate updating the tax system in the oil industry. There is a new initiative to introduce a profit-based tax on hydrocarbons producers. Export duties, the current instrument for skimming off excessive profits, should be eliminated, as they fall short of fully conforming to the principles of international trade.
Objectives The study explores prospects for feasible transformation of tax on corporate profits of companies operating in the oil and gas industry. The purpose is to formulate an algorithm for phased transition to profit-based tax in Russia, using the experience of developed countries.
Methods The study rests on the method of statistical grouping, benchmarking, and subject?object analysis.
Results The findings show that the transition to the new taxation system will spur additional investment in challenging fields development. The tax reform will prop up the Federal budget revenues and contribute to increasing the volume of oil production.
Conclusions The potential of the new profit taxation system is high. However, its testing in pilot regions may face some difficulties though overcomable on condition of high efficiency of tax administration and flexibility of legislative initiatives.

Keywords: tax, mining, profit, oil industry


  1. Bobylev Yu.N., Idrisov G.I., Sinel'nikov-Murylev S.G. Eksportnye poshliny na neft' i nefteprodukty: neobkhodimost' otmeny i stsenarnyi analiz posledstvii [Export duties on crude oil and petroleum products: The need to eliminate and scenario analysis of implications]. Moscow, Gaidar Institute Publ., 2012, 84 p.
  2. Goncharenko L.I., Ivanov Yu.B., Maiburov I.A. [Reforming the tax system: A discussion on challenges and opportunities]. Nalogovaya politika i praktika = Tax Policy and Practice, 2012, no. 8, pp. 10—12. (In Russ.)
  3. Koren' A.V., Nedbailik I.O. [Comparative analysis of basic principles of taxation oil and gas industry in Russia and foreign countries]. Fundamental'nye issledovaniya = Fundamental Research, 2015, no. 10-2, pp. 384—387. (In Russ.)
  4. Korostelkina I.A., Korostelkin M.M. [The importance of tax administration institution in the system of tax consulting for economic entities]. Novaya nauka: strategii i vektory razvitiya = New Science: Strategies and Vectors of Development, 2016, no. 10-2, pp. 139—143. (In Russ.)
  5. Makarov A., Galkina A., Grushevenko E. et al. [Global Energy Markets Outlook up to 2040]. Mirovaya ekonomika i mezhdunarodnye otnosheniya = World Economy and International Relations, 2014, no. 1, pp. 3—20. (In Russ.)
  6. Roshchupkina V.V. [Role of tax management of subjects of economic activity in optimization of the actual ability of the taxpayer to payment of income tax]. Vestnik SKFU = Newsletter of North-Caucasus Federal University, 2016, no. 1, pp. 88—93. (In Russ.)
  7. Kryukov V.A., Tokarev A.N., Shmat V.V. [Possibilities of growth on the basis of the oil and gas sector development]. Nalogi. Investitsii. Kapital = Taxes. Investments. Capital, 2014, no. 4, pp. 2—13. (In Russ.)
  8. Moiseeva M.A., Voishvillo I.E., Milogolov N.S. [Taxation of Oil and Gas Production: Development Trends]. Finansovyĭ zhurnal = Financial Journal, 2012, no. 1, pp. 87—100. (In Russ.)
  9. Pancheva V.S., Yazev V.A. [Analysis of global practice in the field of gas production taxation]. Problemy ekonomiki i upravleniya neftegazovym kompleksom, 2013, no. 1, pp. 4—7. (In Russ.)
  10. Pope T., Waters T. A Survey of the UK Tax System. Institute for Fiscal Studies. IFS Briefing Notes, 2014, no. BN09, 66 p. URL: Link

View all articles of issue


ISSN 2311-9381 (Online)
ISSN 2073-5081 (Print)

Journal current issue

Vol. 23, Iss. 6
June 2020