SOCAR to cut tax payment to the budget of Azerbaijan by 14% in 2016

​Tax payment by SOCAR to the budget of Azerbaijan is forecast at 1 bln 290 mln manats in 2016, which is by 210 mln manats or 14% less than was forecast for 2015, the Minister of Finance, S. Sharifov, said.

Tax payment to the budget of Azerbaijan in 2016 from the income tax of oil and gas companies working on PSA in Azerbaijan is forecast at 500 mln manats, which is by 300 mln manats or 37.5% less than was forecast for 2015, he said.

The forecast of tax payment by oil and gas companies in 2016 was based on the average oil price of $50/barrel.

Oil and gas companies working in Azerbaijan on PSA pay income tax 4 times a year: in Jan, April, July and October. The actual payment to the state budget on income tax is made based on the actual oil price in the world market.