It is known that taxes are the integrated part of income of treasuries at all levels. In 2015 taxes and insurance payments in Russia amounted to 79% of the income at all levels. According to 2015 results in the State consolidated budget among taxes the largest share has the personal income tax (PIT) – 41%. The second place takes the income tax - 31% and the third - the property tax with 15%. The shares of other taxes are included in table 1.
|PIT||Income tax||Property tax||Excises||Transport tax||UTII||MET||Others|
|Absolute value, bln RUB||2 806||2107||1068||486||140||78||67||153|
UTII - unified tax on imputed income for certain activities
MET– mineral extraction tax
Types of taxes, taxpayers, objects of taxation, tax base, tax rates and tax benefits are determined by the Tax code of the Russian Federation, the Budget code of the Russian Federation and in accordance with the laws of constituent entities of the Russian Federation on taxes and other legislative acts. The Federal taxes and charges include value-added tax (VAT), excises, PIT, income tax, MET, water tax and others. The Regional taxes include corporate property tax, gambling tax, transport tax. The local taxes and charges include land value tax, individual property tax and sales tax.
At the present time the summarized tax burden of business entity looks as follows:
- the income tax rate is 20%, among them 2% go to the Federal budget, 18% to the budgets of constituent entities of the Russian Federation; the tax rate for enterprises with the simplified tax system (STS) is 6% of the income (gross profit), or 15% of profit before taxation;
- insurance contributions reach 30%, among them: 22% of wage fund go to the Pension Fund of the Russian Federation, Federal Compulsory Medical Insurance Fund - 5,1% and Social Insurance Fund - 2,9%; the rate of insurance payment for enterprises with the STS is 20%;
- PIT is transferred to the State by the employer according to the accrued salary in the amount of 13%;
- VAT – 18%, for a number of products it decreases;
- Property taxes cannot exceed 2.2%.
At the present time the regions have the right to decrease the income tax rate to 10%. However the benefit applies only to those companies, which will invest from 50 to 500 mln RUB in the development of the region. The decrease in the rate is connected with the necessity to attract the investors to the regional projects and local industries, thereby to increase the activeness of financial investment – one of the most important figures in macroeconomics. According to the assessments of the Ministry of economic development of the Russian Federation, decline in investment in Russian economy may amount to 2,7-3,1%, that definitely is an alarming factor.
The work of the Ministry of Finance in association with the Ministry of economic development, the Federal Tax Service, the Federal Customs Service of the Russian Federation on revision of tax and customs benefits was resumed. The governmental authorities are going to reassess the benefits from the point of loss of revenue from the budget. This is related to preparation of a budget for 2017-2019, which, as expected, will be tight. The reform should be completed in the second half of next year. As a result, the final list of tax and customs benefits will be formed. They will be distributed to state programs or included in non-program budget expenditures.
Information agency Credinform has prepared the ranking of the Russian largest enterprises on drilling related to oil and gas extraction on return on investments ratio.
The largest by revenue enterprises in this industry in Russia (TOP-10) for the last available in the Statistical register period (2015) were taken for the ranking. Further the enterprises were ranked in the descending order of return on investments ratio. (Table 1).
Return on investments (%) is calculated as a ratio of net profit (loss) to net assets value. The indicator characterizes a yield from each ruble, received from investments, i.e. the number of monetary units required by an enterprise for receiving one monetary unit of net profit.
In order to get the full and fair picture of company’s financial situation, it’s necessary to pay attention not only to the level of return on investments, but also to all the available combination of its financial data and ratios.
|Name||Net profit 2015, mln RUB||Revenue 2015, mln RUB||Revenue 2015 to 2014, %||Return on investments 2014 %||Return on investments 2015 %||Solvency index Globas-i|
|ERIELL NEFTEGAZSERVICE LLC
Tax number 7727650928 Moscow
|950,0||22 012,9||77||391,93||146,96||550 Insufficient|
|JSC SIBERIAN SERVICES COMPANY
Tax number 814118403 Moscow
|1 696,3||28 517,7||104||39,25||33,95||197 Prime|
|BKE Shelf Ltd
Tax number 3008011426 Astrakhan region
|1 440,9||12 412,6||142||50,25||25,90||218 High|
|LLC TARGIN BURENIE
Tax number 272016783 Republic of Bashkortostan
|722,1||8 946,0||107||19,35||23,08||245 High|
|LLC BUROVAYA KOMPANIYA EURASIA
Tax number 8608049090 Moscow
|10 887,1||60 401,4||90||22,59||22,21||220 High|
|LLC SGC - DRILLING
Tax number 1326182132 Moscow
|1 802,1||12 653,8||90||15,27||18,70||208 High|
|LLC INTEGRA – DRILLING
Tax number 1834039053 Tyumen region
|232,5||5 728,1||80||-15,93||5,79||550 Insufficient|
|LLC NOVA ENERGY SERVICES LIMITED
Tax number 8911019233 Yamalo-Nenets autonomous district
|14,4||8 485,0||90||2,79||0,98||288 High|
Tax number 7706613770 Moscow
|58,0||29 544,3||86||3,32||0,21||307 Satisfactory|
|LLC BVS EURASIA
Tax number 8608055801 Khanty-Mansiisk autonomous district
|-729,1||5 308,8||74||-154,28||-401,85||337 Satisfactory|
LLC BUROVAYA KOMPANIYA EURASIA took the fifth place of the ranking, having the largest revenue for 2015. The company’s share in the total revenue volume of the TOP-10 amounted to 31%. Furthermore it has the largest profit indicator among the TOP-10 companies.
ERIELL NEFTEGAZSERVICE LLC shows the largest return on investments. However this indicator decreased by 2,5 times in comparison with the previous accounting period. Besides, the company was given the insufficient solvency index Globas-i, due to information about being a defendant in debt collection arbitration proceedings and claims filed against the company for recognition bankrupt (insolvent). For these reasons the same solvency index Globas-i was given to LLC INTEGRA – DRILLING.
LLC RN-BURENIE and LLC BVS EURASIA were given satisfactory solvency indices Globas-i, due to being a defendant in debt collection arbitration proceedings. Moreover, LLC BVS EURASIA is the only company out of the TOP-10, having the net loss and correspondingly the negative value of return on investments for 2014 and 2015.
The rest six companies were given the prime and high solvency index Globas-i, which gives evidence to their ability to meet the debt obligations timely and in full.
The industry-average value amounted to 11,97% in 2013 and decreased to 6,89% in 2014. The corresponding trend of return on investments decrease is also observed in the group of companies TOP-10, where the indicator of the seven companies has worsened.
The total revenue volume of the TOP-10 for 2015 amounted to 194 billion RUB, which is by 9% lower than the indicator for 2014. At the same time the net profit of these companies increased by 55% for the same period.
In the whole, the industry closely related to energy sources extraction, faces certain difficulties, generated by the known events both in the world energy sources market, and in geopolitical sphere.
The data of the Federal State Statistics Service gives evidence on the one hand to constant growth of the number of wells in the absolute value (Figure 2), on the other – growth rates from year to year don’t show stability (Figure 3).
Owing to specific manufacturing features, the enterprises on drilling related to oil and gas extraction gravitate either to the largest financial center of the country – Moscow, or to regions where it is possible to locate the cost-effective production facility. The data of the Information and Analytical system Globas-i on registration of 100 industry largest by the revenue volume companies gives evidence to it. TOP-7 regions:
|Region||Number of companies|
|Khanty-Mansiisk autonomous district||22|
|Republic of Bashkortostan||11|
|Republic of Tatarstan||6|
|Yamalo-Nenets autonomous district||6|