of October 23, 2003 No. 974
About approval of Rules of collection of payments for use of subsoil, sites of bottom and the water area of the sea
For the purpose of ensuring execution of the Law of the Azerbaijan Republic "About subsoil" I decide:
1. Approve "Rules of collection of payments for use of subsoil, sites of bottom and the water area of the sea" (are applied).
2. This Decree becomes effective from the date of signing.
Azerbaijan Republic Heydar ALIYEV
Approved by the Presidential decree of the Azerbaijan Republic of October 23, 2003 No. 974
1. These rules are prepared according to the Law of the Azerbaijan Republic "About subsoil" and the Presidential decree of the Azerbaijan Republic of April 27, 1998 No. 701 "About application of the Law of the Azerbaijan Republic "About subsoil" and establish rules and conditions of collection of payments for use of subsoil, sites of bottom and the water area of the sea, and also the amount of payment and criteria of its appointment.
2. Treat payments for use of subsoil, sites of bottom and the water area of the sea payments for search and investigation of mineral deposits, and also construction and operation of the underground constructions which are not connected with mining. Payments are paid in the State fund for recovery of base of mineral raw materials.
3. Payments for mining are paid according to the Law of the Azerbaijan Republic "About the tax of trade". Within the mountain branch provided for mining, the payment for investigation of minerals is not levied from the user.
4. Execution of these rules is obligatory for all users subsoil irrespective of pattern of ownership and legal form.
5. Payments for use of subsoil, sites of bottom and the water area of the sea depending on types of use can be made in the form of money payments, part of the extracted mineral raw materials or other products made by the user, rendering services.
6. The amount of payment for search and assessment of mineral deposits is established by the Ministry of Ecology and Natural Resources of the Azerbaijan Republic depending on type of mineral, economical and geographical conditions of the area and constitutes 1-2 percent of cost of the forthcoming works.
7. The amount of payments for conducting search and estimative works of mineral deposits is established for each square kilometer of the site and for every year. Annual payments for 1 square kilometer of the site are estimated by division of general regulation of payment (1-2 percent of total cost of works) into the site of the taken-away territory and terms of work.
In case of return by the subsoil user of part of the site where search and estimative works are carried out, it is exempted from the subsequent payments for this site.
8. Conditions of collection of payments for investigation of mineral deposits same, as well as during the search works. The amount of payment for investigation is established by the Ministry of Ecology and Natural Resources of the Azerbaijan Republic and constitutes 3-5 percent of cost of the forthcoming works.
9. In case of prolongation of term of use of subsoil for completion of search and prospecting works the amount of previously established payment increases in time 1,5. Upon completion of search and prospecting works tax authorities perform recalculation of the amount of payments taking into account the cost of the actual works.
10. If along with search and prospecting works mineral production is conducted, payments for production of this mineral are paid according to the Law of the Azerbaijan Republic "About the tax of trade".
11. The amount of payments for use of subsoil for the purpose of construction and operation of the underground constructions which are not connected with mining is established by the Ministry of Emergency Situations depending on the sizes of borders, usefulness of the subsoil transferred to use of the level of danger of violation of ecological balance in case of their use and mining conditions and constitutes 1-3 percent of cost of the services rendered in case of their operation. Payments join in cost of constructions.
12. The amount of payment for use of sites of day and the water area of the sea is established according to Items 6-11 of these rules depending on placement and configuration of the site, thickness of water layer, uses of subsoil of seabed are more whole.
13. The amount of payments for use of production waste in connection with mining operations is established and constitutes 50 percent of payment (tax of trade) for production of the corresponding mineral.
14. Exceptions in payments for use of subsoil are applied in the following cases:
- in case of production on being in property of legal entities and physical persons or the leased parcel of land in accordance with the established procedure of popular minerals (at depth up to 5 m) and underground waters without pressure for satisfaction of own needs;
- when carrying out geological works on research and state programs on studying of subsoil, forecasting of earthquakes, engineering-geological developments, control of the mode and balance of underground waters, and also other works which are carried out without violation of integrity of subsoil, works on creation of especially protected geological objects (the scientific and educational pilot sites, geological reserves, wildlife areas, natural monuments, caves and other underground emptiness) representing scientific, cultural, esthetic, medical and improving value.
For the purpose of encouragement of use of the fields located in difficult mining-and-geological conditions or having low quality, including which are difficult got, not corresponding to standard, containing the inventories of minerals which are earlier written off from the state balance, uses of cover and side rocks, waste of mountain and related processing industry, and also production of the main and collateral components of use of ecologically safe technologies users can be partially exempted by subsoil from payments for use of subsoil.
15. Privileges for operation of the mineral deposits having low quality and efficiency are provided to subsoil users in the following cases:
- if not connected with violation of procedure for rational use of the reconnoitered resources and rare minerals are extracted in the conditions of low cost efficiency;
- if from low-quality residual resources minerals, except as specified quality degradations of mineral as a result of development of rich sites of the field are extracted by selective method.
16. The decision on application of exceptions and privileges in payments for use of subsoil is accepted by the Ministry of Ecology and Natural Resources of the Azerbaijan Republic taking into account the conclusion of the Ministry of Emergency Situations after state examination of the geological and economic, mining and technical and economic reasons provided by the subsoil user.
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