KazMunaiGas EP Gets Approval For Temporary Reduced Met Rate For Ozenmunaygaz

KMG EP Gets Approval For Temporary Reduced Met Rate For OzenmunaygazKazWorld.info – The reduced MET rate is set at 9% (compared to 13% in 2015) for the whole of 2016 on the condition that in 2016 Uzen and Karamandybas fields record losses under tax accounting. The maximum benefit is expected to be approximately T17 bn in 2016.

According to the financial statements of KazMunaiGas EP, in 1H2016 taxes other than CIT totaled T79.3 bn, 41% of which came from the MET (T32.3 bn). MET size in 1H2016 has increased by 26% to T32.3 bn, mainly due to the increase in the average KZTUSD exchange rate, which was partially offset by a drop in the average Brent price from US$57.8 per barrel to US$39.8 per barrel in the reporting period.

In late August, the Company reported that 2006-2008 tax charge has been reduced by T5.4 bn from T12.2 bn. This amount will be recorded as other income in the Company’s third quarter of 2016 financial statements. The company is also in the process of appealing against the additional tax charge as a result of the tax audit for the years 2009-2012 in the amount of T18.6 bn, a fine of T9.7 bn and interest of T9.3 billion.