Russia's Finance Ministry confirms exempting actual losses in gold mining from calculation of increased MET in 2024

MOSCOW. Oct 18 (Interfax) - The Finance Ministry has confirmed exempting actual losses in gold mining from the increased mineral extraction tax (MET), which is valid from July 1, 2024, to December 31, 2024, the ministry said.

"There are technical losses that are taxed at a zero MET rate. The technical amendment simply brings the current norms of the code into compliance," Deputy Finance Minister Alexei Sazanov told reporters.

Interfax, citing a source, reported on Thursday that the government commission on legislative activity had approved the corresponding amendments and planned to submit them to the State Duma early next week.

The State Duma in July adopted amendment No. 512729-8 to the Tax Code, according to which an additional formula (Kdrm) has been introduced for gold mining to the MET totaling 78,000 rubles per kilogram from June 1 to December 31, 2024, inclusive, in order to compensate Russia's budget for lost income from reduced exports.

The Finance Ministry's prepared amendments indicate that gold, which is subject to the MET as part of actual losses during mining, is exempt from the increased formula as of July 1, 2024.