PJSC Ukrnafta : Ukrnafta paid over UAH 14.8 billion in taxes

Ukrnafta paid over UAH 14.8 billion in taxes

PJSC Ukrnafta paid UAH 14.84 bln in taxes to budgets of all levels for 12 months of 2021. This amount included the rent for subsoil use, VAT, excise duty and other taxes.

The state and local budgets of various levels received UAH 8.85 bln of royalties for the use of subsurface resources, 86% more than last year. According to the rent sharing mechanism, established by law, the oblasts, raions and local communities' budgets will receive UAH 442.6 mln. The largest revenues from Ukrnafta's rent will go to the budgets of Sumy, Ivano-Frankivsk and Poltava regions. The amount of rent paid to the local budgets depends on the volume of hydrocarbons production in the region and the price of hydrocarbons. The communities usually fund local infrastructure and social projects with rent revenues.

Ukrnafta is responsible for fulfilling its obligations and pays its taxes on time, as required by law. As of December 31, the company had no debt to the state budget.

Rent revenues to budgets of oblasts, raions and local communities, mln UAH

	12 months 2021
Sumy oblast	175,2
Ivano-Frankivsk oblast	103,5
Poltava oblast	82,1
Chernihiv oblast	38,95
Lviv oblast	35,3
Kharkiv oblast	6,2
Dnipropetrovsk oblast	1,1
Chernivtsi oblast	0,3
Total	442,65

The rent sharing mechanism envisages that 95%of rent revenues go to the central public budget, while 5% - to the local budgets. The local rent revenues are split further with 2% allocated to the raions and 3% to the oblast and local communities where companies produce hydrocarbons. Thus, the rent sharing mechanism allows local communities to receive share of revenues from production of oil and gas.