In connection with intensification of the exploration of paraffin and gas, including shale beds, the Ministry of Finance prepared a draft act as of 28 March 2013 concerning, amongst others, taxation of hydrocarbons. The Act implements a special hydrocarbon tax. Hydrocarbon tax is calculated on revenue from supplies of explored hydrocarbons, reduced by eligible expenses defined in the Act.

The tax rate is 25 percent, if the relation of cumulated revenues to cumulated eligible expenses is equal to or larger than 2, and 12.5 percent if this relation is below 2 and higher than 1.

Payers of hydrocarbon tax will pay monthly advances and submit annual tax declarations.

The draft act also foresees a possibility of individually setting the period of amortization for drill holes, which the taxpayer enters in his registers for the first time, however this period cannot be shorter than 60 months.

The special hydrocarbon tax will not be the only levy collected for production of gas and paraffin. Entrepreneurs will additionally pay a tax on production of certain minerals, CIT, maintenance fees, real estate tax, and fee for establishment of a mining usufruct. In total, the so called state raw materials fee (renta surowcowa) will amount to approximately 40%.

The Act will be effective from 15 January 2015.