Legal Regulation of The Taxation of Hydrocarbon Production: The Experience of The Russian Federation

This thesis paper is devoted to the problems of legal regulation of taxation of hydrocarbon production according to the experience of the Russian Federation. As a result of the study, the author found that the legal nature of MET and EPT is based on building an effective tax mechanism for extracting rents from non-proprietors, with public interest and private interest in the form of fair accounting of costs and expenses incurred in connection with the extraction hydrocarbon materials. At the same time, the essential feature of all subsurface use fees is their rent-based nature. In addition, the author noted that in terms of legal engineering and applicable mechanisms for building a hydrocarbon taxation system, it can be argued that the legislator is interested in encouraging taxpayers - subsoil users in the system of development of hydrocarbon infrastructure, including in hard-to-reach regions, through the possibility of applying legal mechanisms to reduce the tax base for EPT. The author also noted that the reduction factors for the tax rate to MET have a different legal nature, as a result the author offered his own classification of these reduction factors, based on their legal nature: preferential (coefficients Кд, Кдв and Кс), incentive (coefficients Кндд and Кr) and stimulating (coefficients Ктд and Кас). The conclusions made by the author can used in improving legislation on taxes and fees, in judicial practice, as well as in further research on the problem of legal regulation of taxation of hydrocarbon production.