I. FEDERAL LAWS OF THE Russian Federation 1. У ON AMENDMENTS TO CHAPTERS 26.2 AND 26.3 OF THE SECOND PART OF THE TAX CODE OF THE RUSSIAN FEDERATION AND OTHER LAWS OF THE RUSSIAN FEDERATION ON TAXES AND DUES, AS WELL AS ON ABOLISHMENT OF SEVERAL PROVISIONS OF LAWS OF THE RUSSIAN FEDERATION Ф of 21.07.2005, No. 101- FZ To come into effect at the end of a month from the date of official publishing, except for Articles and 4 to take effect from 01.01.2006.
Chapter 26.2 УOn Simplified System of TaxationФ was amended. In particular, the maximum amount of income allowing for transition to this fiscal treatment increased from 11 to 15 million rubles. A list of persons which are not entitled to apply this fiscal treatment was updated; a list of fixed and intangible assets with net depreciated value beyond 100 million rubles do not allow organizations to apply a simplified taxation system was made as well.
The amendments made to Chapter 26.3 УThe System of Taxation as a Unified Tax on Imputed Income for Certain Categories of ActivityФ include the following: this system of taxation may be applied to public catering services provided not only by organizations which have room space of 150 square metes of smaller for providing services to their customers, but also those which have no room space for the same purpose. The meaning of retail trade was specified, which for the purposes of this fiscal treatment is considered to be trade in goods on the basis of a retail purchase/sale agreement.
2. У ON AMENDMENTS TO THE SECOND PART OF THE TAX CODE OF THE RUSSIAN FEDERATION AND ON ABOLISHMENT OF CERTAIN PROVISIONS OF LAWS OF THE RUSSIAN FEDERATION Ф of 21.07.2005, No. 107- FZ To come into effect from 01.01.2006, except for Article 16, Clause 1 to take effect at the end of a month from the date of official publishing.
Chapter 22 УExcisesФ was amended. In particular, Article г179.2 was added, which specified that organizations entering into transactions involving industrial alcohol shall be subject to registration with tax authorities on the basis of a certificate for industrial alcohol production or alcohol-free product manufacturing to depend upon the type of activity. Perfumery and cosmetic products to be sold in the metal aerosol packing will cease to be excisable goods from January 1, 2006. A transaction involving receipt (recognition) of industrial alcohol by an organization licensed to manufacture alcohol-free products will be subject to excise. The regulations concerning alcohol products under the excise warehouse treatment were abolished. The regulations concerning excise rates, the procedure of application of tax deductions for excises, terms and the procedure of excise payment for transactions involving excisable goods were updated. It was established that the provisions of Chapter 22, the second part of the RF Tax Code shall not be applied to directly distilled gasoline and industrial alcohol produced (recognized) as of January 1, 2006,.
The Law also made amendments to Chapter 26 УMineral TaxФ. The regulation applicable to types of produced mineral products considered as such for the purposes of Chapter 26 of the RF Tax Code was specified. This provision is applicable to legal relations which arose since January 1, 2002 with respect to gas condensate produced at gas condensate fields, as well as to legal relations which arose since January 1, 2004 with respect to gas condensate produced at all other types of fields, without recalculation with the budget. The mineral tax rate imposed on production of natural burning gas at any type of hydrocarbon fields increased from 135 to 147 rubles per 1000 cubic meters of gas.
3. У ON AMENDMENTS TO CHAPTER 21 OF THE SECOND PART OF THE TAX CODE OF THE RUSSIAN FEDERATION Ф issued on 22.07.2005, No. 118- FZ To come into effect from the end of a month since the date of official publishing, but not until the fist date of the upcoming value added tax fiscal period.
The Law is chiefly intended to make amendments preventing unreasonable tax liabilities or double VAT taxation in the process of reorganization of economic agents. A list of transactions that are not subject to VAT was added with such transactions being considered as assignment of property rights by an organization to its legal successor ( successors ) was made. A new Article 162.1 was added to the Chapter, which provides specific features of taxation during reorganization of a legal entity. The regulation applicable to the procedure of confirming the entitlement to tax compensation at the rate of percents was added with a provision specifying peculiarities of confirming the entitlement to VAT refund in cases of reorganization of an organization. Peculiarities of the moment of determining the VAT tax base in realizing ( assigning ) goods ( works, services ) and specifics of applying tax deductions in collecting the tax in cases of reorganization were specified.
To be applied to legal relations arising from January 1, 2005.
4. У ON AMENDMENTS TO CHAPTER 21 OF THE SECOND PART OF THE TAX CODE OF THE RUSSIAN FEDERATION AND ON ABOLISHMENT OF CERTAIN PROVISIONS OF LAWS OF THE RUSSIAN FEDERATION ON TAXES AND DUES Ф of 22.07.2005, No. 119- FZ To come into effect from 01.01.2006, except for certain provisions to take effect from 01.01.2007.
The regulations on determining a place of sale of works (services) for the purposes of Chapter of the RF Tax Code were changed. A list of transactions which are not subject to taxation (exempted from taxation) was added with such types of operations as bank card services, raffling (upon decision of an authorized executive authority), including provision of services relating to sale of ruffle tickets;
performing notarial actions by notary officers engaged in private practice; sale of sweepings and ironand-steel waste; transfer of goods which cost not more than 100 rubles per unit for advertising purposes. The regulations on determining a tax base in assigning property rights, the procedure of confirming entitlement to tax deduction in taxation at the rate of 0 percents, as well as the procedure of applying tax deductions were amended. The amount that allows corporate earnings to be subject to VAT exemption was doubled. The amount of earnings that allows a company to submit reports and pay taxes on a quarterly basis rather than monthly one was doubled too. Instead of the existing method of VAT assessment for shipment ( the tax is charged on the date of shipment ) and payment ( tax base arises at the moment of payment ), VAT will be assessed for the earliest of the two dates, either the date of shipment or the date of payment or partial payment. In addition, Article 174.1 УSpecifics of Tax Assessment and Payment to the Budget for Operations Conducted under an Association Agreement ( Joint Operation Agreement ) or an Agreement on Trust Management of Assets on the Territory of the Russian FederationФ was added to the Chapter.
5. Federal Law У ON CONCESSION AGREEMENTS Ф issued on 21.07.2005, No. 115- FZ The Federal Law regulates relations arising from preparation, execution and termination of concession agreements and establishes security of rights and legal interests of the parties of a concession agreement. Under a concession agreement, one party referred to as the concessionary ( self-employed entrepreneur, Russian or foreign legal entity acting as non-incorporated entity under a joint operation agreement entered into by several legal entities ), undertakes to establish and/ or reconstruct at its own account a real estate specified by such agreement, which is owned by the other party referred to as the owner ( the Russian Federation ), operate by using ( operating ) the facilities specified by the concession agreement, and the owner undertakes to entitle the concessionary to posses and utilize the facilities for the specified purposes and for the period specified by the concession agreement. Motor roads, airfields, public utility service facilities, waterworks, subway, hospitals, schools, etc, may be assigned for concession on the basis of competitive bidding. The land area on which the facilities of the concession agreement are located and/ or intended to be utilized by the concessionary as provided for by the concession agreement, shall be leased by the owner to the concessionary. The concessionary shall bear responsibility to the owner for any violation of the requirements established by the concession agreement during construction and/ or reconstruction of the facilities under the concession agreement, and/ or the requirements of the technical regulations specified by design plans and specifications and other quality requirements for the constructed and/ or reconstructed facilities.
6. У ON AMENDMENTS TO THE LAW OF THE RUSSIAN FEDERATION УON THE STATUS OF THE AWARDEES OF THE HERO OF THE SOVIET UNION, THE HERO OF THE RUSSIAN FEDERATION MEDALS AND THE HOLDERS OF A COMPLETE SET OF THE MEDAL OF HONOR Ф issued on 23.07.2005, No. 122- FZ To come into effect from 01.01.2006.
The amendments to this Law mainly concern provision of welfare benefits to the specified categories of citizens. New Article 9.1 was introduced, which established the awardees of the Hero of the Soviet Union, the Hero of Russia Medals, and the holders of a complete set of the Medal of Honor shall be entitled to monthly cash payments to the amount of 25000 rubles subject to indexation specified by Federal Law УOn Labor Pensions in the Russian FederationФ of 17.12.2001, No. 173- FZ for the amount of base labor pensions. The citizens of Russia which are more than once awarded the Hero of the Soviet Union, the Hero of Russian Federation Medals, as well as the holders of a complete set of the Medal of Honor also awarded the Hero of the Soviet Union, the Hero of Russian Federation Medals, shall be entitled to one monthly payment. The monthly payment shall be made provided the recipient has refused to be entitled to in-kind benefits. It should be noted that awarded the Hero of the Soviet Union, the Hero of Russian Federation Medals, as well as the holders of a complete set of the Medal of Honor are entitled to such monthly payment even though they are entitled to monthly payment under any other regulations and laws of the Russian Federation. A series of benefits were established for this categories of citizens in addition to the monthly cash payment, in particular they are entitled to priority medical aid at in-patient and out-patient medical facilities of all types, priority hospitalization, door-to-door delivery of medicines, priority provision ( once a year ) of a voucher for sanatoriums ( preventoriums ).
II. REGUALTIONS issued by the GOVERNMENT of the Russian Federation 1. У ON FEDERAL STANDARDS OF APARTMENT RENT AND PUBLIC UTILITY SERVICES Ф issued on 29.08.2005, No. Federal standards of apartment rent and payment for public utility services in the Russian Federation and the constituent entities of the Russian Federation were established, in particular: the maximum share of personal expenses on apartment rent and payment for public utility services shall not exceed 22 percent of the aggregate family income; the social norm of living quarters shall be square meters of total living space per person. Regulation УOn federal standards of transition to a new system of apartment rent and payment for public utility servicesФ of 26.05.1997, No. 621 was abolished.
III. ORDERS, INSTRUCTIONS and REGULATIONS 1. A Newsletter У ON CALCULATION ON MINRAL TAX RATE FOR JULY 2005 Ф issued by the Federal Tax Service on 17.08.2005, No. GV-6-21/692@ Provided were the practical data used for assessing the mining tax in oil production in July 2005 :
The price of Urals oil averaged 54,84 US dollars per barrel in the Rotterdam and Mediterranean markets ;
The USD/RUR exchange rate ( as quoted by the RF Central Bank ) averaged 28,6889 for the entire fiscal period ;
Kc coefficient - 5,0387 ;
Tax rate with consideration of the Кc coefficient - 2111,2153 rubles per ton.
2. A Regulation У ON APPROVAL OF THE PROVISION CONCERNING THE PROCEDURE OF KEEPING THE PUBLIC REGISTER OF CHARTERS OF MUNICIPALITIES AND ENSURING ACCESSIBIITY TO THE PUBLIC REGISTER DATA Ф issued by the RF Ministry of Justice on 24.08.2005, No. The Regulation was registered with the RF Ministry of Justice on 30.08.2005, No. A Federal Law УOn public registration of charters of municipalitiesФ was adopted in July 2005. A Provision specifying the procedure of keeping a public register of charters of municipalities and ensuring accessibility to the public register data is to take effect from September 1, 2005. The public register is a set of data on publicly registered charters and regulations of municipalities located on the territories of the constituent entities of the Russian Federation. This public register is to be introduced by head quarters of the Ministry of Justice of the Russian Federation at federal districts and its structural units located on the territories of the constituent entities of the Russian Federation.
Tolmachiova I. V.
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