OREANDA-NEWS. On 27 May 2008 was announced, that samara regional Ministry of Finance intends to reduce the tax on income paid rate to budget by the federal oil transporting companies. It will be reduced by 4%. In this connection the regional income will increase by 3 billion rubles in 2008 according to departmental calculations. The corresponding projected law has been approved by the Committee on budget, finance, taxes and economical policy of the Samara Regional Duma, reported by Sarama portal dengi63.ru.

A decrease of tax for the oil transporters from 17,5 to 13,5 percent under the amendments to the law about reduced rates for tax on income of the organizations.

At present there are 29 tax on income payer-companies registered in Samara region providing pipeline transportation services. Nine of them are specialized in oil and petroleum products transportation. Part of such organizations form vertically integrated companies (VIC). Reduce of the tax rate to 4% can make them transfer investment part of the profit to the taxable base of the affiliates and thereby increase the amount the tax on income is taken from to the regional budget.

The regional Ministry of Finance has prepared a list of federal regional companies able to claim for a privileged taxation system.

Elena Zyabkina Deputy Minister for Samara region finance department has noted that the profitability of the decision to establish the privileged taxation system for the oil companies has already been confirmed in practice. For instance the regional government has already signed an agreement with “Transneft”. As a result the companies tax charges to the regional treasury have been 5 times increased, - Deputy Minister stated. At the same time “Transneft’s” affiliates have got benefit as well since taxes are being paid at a lower rate at the moment.

The amendments are planned to gain the statutory basis beginning from December 1, 2008.