Monitoring of the Federal Legislation dated 11.02.2005

Order of the Ministry of Finance of the Russian Federation No. 135n of December 31, 2004 on the Amendments to the Directions on the Procedure of Drawing up and Submission of Accounting Reports

The Directions on the procedure of drawing up and submission of accounting reports endorsed by the Order of the Ministry of Finance of Russia No. 67n of July 22, 2003 now do not contain the provision stating that the annual balance report shows the groups of items "Reserved Capital", "Undistributed Profit (Uncovered Losses)" taking into account the results of work of the organisation for the reported year, adopted decisions to cover losses, pay out dividends and other.

The Order is entered into force beginning with accounting reports for the year 2004.

According to the Statement of the Ministry of Justice of the Russian Federation No. 01/677-VYa of January 31, 2005, the Order does not need the state registration.

Decision of the Higher Arbitration Court of the Russian Federation No. 16141/04 of January 26, 2005

Invalidates the Letter of the Ministry of Taxation of Russia No. 04-2-06/127 of February 17, 2004 on the taxation of compensation payments to reimburse the expenses pertaining to service trips as not complying with Item 1 of Article 11, Article 210, Item 3 of Article 217 of the Tax Code of the Russian Federation. According to the mentioned Letter, amounts of the daily subsistence paid out in excess of the specified norms are subject to the income tax from natural persons according to the commonly accepted procedure.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-06-05-05/43 of December 21, 2004 on the Issues of Application of the System of Taxation in the Form of the Uniform Imputed Income Tax

If there are two individual lease contracts for the rooms concluded for the purpose of retail trade, each of which has the shop floor area less than 150 square meters, and there is a separate cash register in each of the rooms, the leased rooms shall be regarded as separate objects of organisation of trade, and, therefore, the shop floor area must be determined separately for each object of organisation of trade. If there is only one lease contract concluded for all rooms for the purpose of retail trade, the mentioned rooms are regarded as a single object of organisation trade, and the whole of the room areas used for the trade activities are taken into account in the determination of the shop floor area.

Letter of the Department of the Tax and Custom Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-06-05-05/39 of December 16, 2004 on the Procedure of Application of the Provisions of Chapter 26.3 "System of Taxation in the Form of the Uniform Imputed Income Tax for Individual Types of Activities" of the Tax Code of the Russian Federation

If the room used for the purpose of retail trade does not comply with the notion of a shop provided in Chapter 26.3 of the Tax Code of the Russian Federation, it should be regarded as an object of a non-stationary trade network. In this case, calculation of the uniform imputed income tax according to Article 346.29 of the Code is done using the figure of basic incomes - trade site.

Also explains that the stationary technical means of outdoor advertising include only those directly connected to the ground, buildings, structures (i.e. objects of immovable property) not intended for relocation during its period of placing on the appropriate advertising areas.

The activities of organisations and independent entrepreneurs in independent distribution and/or placing of promotion information on their commodities may not be recognised as complying with the notion of "entrepreneurial activities" specified in Article 2 of the Civil Code of the Russian Federation, and, therefore, such activities may not fall under the system of taxation in the form of the uniform imputed income tax.