1. “The Code of Ukraine on Soil” as of July 27, 1994 No 13 2/94-BP;
2. The Law of Ukraine as of December 21, 2000 No. 2181-III “On the procedure for paying taxpayers’ liabilities to budgets and state specialized funds”.
3. The Procedure of Establishing Norms of Fee for Geological Prospecting Works Carried Out at Expense of the State Budget and its Levying, approved by the Cabinet of Ministers of Ukraine as of January 29, 1999 No 115.
4. The Instruction on the procedure for levying the Fee for Geological Prospecting Works Carried Out at Expense of the State Budget and its Levying, approved by the order of the Committee on Geology and Bosom utilizing of Ukraine, the order of the State Tax Administration of Ukraine as of June 23, 1999 No.105/309, registered at the Ministry of Justice of Ukraine on July 16, 1999 under the No. 474/3767.

Payers for Fee for Geological Prospecting Works are all who use bosoms irrespective of forms of ownership including enterprises with foreign investments that quarry minerals on the fields located within the territory of Ukraine, its continental shelf and excluded (sea) economic zone:

• Formerly prospected and passed in the established order for industrial developing;
• With a preliminary estimated stocks that by the agreement of interested bosom users were delivered to them for research industrial developing and industrial exploitation.

If structural subdivisions having not a status of legal entity and making minerals mining (mines, pits, quarries, workshops, etc) belong to enterprises – bosom users, then a fee payer is an enterprise – bosom user with such structural subdivisions including.

Value of explored minerals – for oil, condensate, natural gas, including methane of coalfields, sapropel, peat, materials for producing optic and piezooptic products, jewelry material and jewelry industrial materials, ground waters (fresh, mineral, thermal, industrial), brine, mineral dirt and silt and volume of mineral stocks slaked in bosoms – for other minerals.

Soil exploiters individually calculate the fee for each reporting quarter proceeding from volumes excavated (slaked stocks) minerals, norms of the fee with taking the index of inflation and coefficients.

For the 4^th reporting quarter the fee is calculated proceeding form volumes of excavated (slaked stocks) of minerals with taking into account specified their volumes after finishing the year, norms of the fee with taking into account the index of inflation and coefficients.

• earlier cancelled mineral stocks, accounted pending a process of excavating deposits in the established order to the category of lost field in bosoms, confirmed by the appropriate acts on writing minerals stocks off accounting of mining enterprise and by accounting documents of geology surveyor documents;
• carbohydrate raw material from mines, defined in the established order as non-profitable with the view of preventing explosive gas leaks in settlements and oil/gas production regions;
• additional, extra base (project) volumes of oil and gas, pending additional development of oil and gas fields, defined by the Cabinet of Ministers of Ukraine as a field with hard excavating and wasting stocks – during 10 years form the date of gaining a license on exploitation of such fields;
• underground waters not used in national economy:

Fee for executed geological prospecting works is levied from the date of excavation of mineral and calculated by soil users individually according to the Instruction on the procedure for fees for geological prospecting works executed at the expense of the state budget.

Payers make a computation of the fee for geological prospecting works quarterly under the form cited in appendix 2 to the Instruction.

The computation is submitted to tax service bodies at the place of registration of a fee payer for executed geological prospecting works quarterly during 40 calendar days followed after the last calendar day of a reporting quarter.

A soil user registered at state tax service bodies of a district (town) other than the location of a mineral field exploited by them, additionally up to the 30^th of the month followed the reporting quarter, submits a copy of the computation of the fee for executed geological prospecting works to a body of state tax service at the place of location of such a mineral field with a remark of a state tax service body that accepted the original computation.

During a reporting quarter fee payers pay to the budget for the first and the second month of such a quarter advance payments of the fee for executed geological prospecting works.

Advance payments are calculated by a fee payer individually at rate of one third of the fee, charged for the previous quarter.

Payment of the fee for a reporting quarter is made quarterly during 50 calendar days (40+10 days) followed the last calendar day of a reporting quarter, with taking into account paid advance payments.

Ones who are exempted form the payment of the fee for executed geological prospecting works:

From the payment of the fee for executed geological prospecting works are released: landowners and land users that carry out in the established order excavation of minerals of local destination for own needs (so without realization of excavated minerals or products of their processing) or that use bosoms for business needs and domestic needs on land plots granted to them in their possession or use.

Fee payers for executed geological prospecting works are responsible for:

• accuracy calculating and timely paying the fee to the budget;
• timely submitting computations to state tax service bodies according to the legislation of Ukraine in force.

Fee payers for executed geological prospecting works are eligible to appeal actions of the respective bodies in the order established by the present legislation of Ukraine.