AMOK to pay 200m AZM of income tax to the State Budget
Oil contracts revenue sharing, which will be carried out in 2006, will be done on the basis of 70% of contractors share and 30% of Azerbaijani government ` share, the Finance ministry told Trend . According to the Contract of the Age this correlation will be followed if the contractors profitability does not increase 16, 75%. Azerbaijani share might be increased to 55% if these numbers will grow from 16, 75 % to 22, 75%, and up to 80% if the numbers grow to 22, 75%.
Considering these figures, the Azerbaijan International Operational
Company (AMOK) will pay this year approximately 200m AZM of income tax to the State budget. These calculations were made regarding the State Budget fixed oil price of $40 per barrel. However, considering the constantly growing prices the payments to the State budget are expected to grow.
The more detailed calculations will made on the basis of the income declaration, which will be presented by AMOK by April 15. According to the contract, AMOK may start the exploration of fields only after it will cover all the taxes.
AMOK will pay income tax on 25% rate according to the contract. Last year AMOK did not pay any taxes, however, its contractors and sub-contractors have paid the income and revenue taxes.