AIOC and BP allocate 140m AZM as revenue tax

Business Materials 25 April 2006 19:40 (UTC +04:00)

Revenue tax allocations from the Azerbaijani International Operative Company (AIOC) and BP reached 140m AZM ($154. 9m) this year. 80m AZM ($88, 5m) of this amount are allocated from the 2005 results and another 60m AZM ($66, 4m) - for the first quarter of 2006, the government told Trend.

The last year` s budgetary forecasts have been done with the consideration of $25 per 1 barrel of oil and in 2006 with $40 per barrel though, considering the increasing tendency of oil prices growth, oil revenues most likely will surpass the forecasts.

According to the contract with AIOC, it should start paying revenue taxes only after it will cover all its expenditures, this procedure was taking place since 2005. This year AIOC made its first revenue tax payments and it is expected to allocate $250-300m by the end of this year.

AIOC will pay the revenue tax at 25% rate, according to the contract. Despite, the last year AIOC did not pay any taxes, its contractors and sub-contractors used to pay revenue taxes.