In 2016 tax payments of State Oil Company of Azerbaijan (SOCAR) to the state budget are forecast to be 1.29 billion AZN (1,855 billion AZN in 2014), Azerbaijani Finance Minister Samir Sharifov said yesterday during discussion of the draft state budget in parliament.
This is 210 million AZN or 14% against the forecast for 2015.
He said the in 2016 the proceed to the state budget from profit tax of oil and gas companies operating in Azerbaijan as a part of the production sharing agreements (PSA) is forecast to be 500 million AZN. “This is 300 million AZN or 35.7% down the forecast for 2015,” Sharifov added.
The forecast of tax payments of oil and gas companies for 2016 is based on the average oil price of $50.00 per barrel.
The oil and gas companies operating in Azerbaijan as a part of PSA pay profit tax four times a year: in January, in April, in July and in October. The actual payments of profit tax to the state budget are based on the actual oil price at the world markets. Income tax within PSA contracts is 25%.
