Monitoring of the Federal Legislation dated 1.08.2005

Letter of the Ministry of Regional Development of the Russian Federation No. 4079-VA/70 of July 27, 2005 on Indices of Changes in the Estimated Cost for the III Quarter of 2005

The indices of changes in the estimated cost in total in respect of building and assembly works and in respect of expenditure items for the III quarter of 2005 from the angle of the subjects of the Russian Federation for the construction projects, which are financed with the attraction of federal budget funds, are given. The indices are intended for aggregative estimations of the cost of construction works with the application of the basic-index method for preparation of tender documentation and for general economic estimations in the investment area.

Indices are defined subject to overhead expenses and estimated profit. Overhead expenses are taken with the decreasing ratio of 0,94 accounting for the reduction of the rate of uniform social tax as of January 1, 2005. The said ratio shall not apply to overhead expenses at the basic price level.

Letter of the Ministry of Regional Development of the Russian Federation No. 4078-VA/70 of July 27, 2005 on the Prices of Design and Survey Works for Construction for the III Quarter of 2005

In the III quarter of 2005 there shall be established the following indices of changes in the cost of: design works for construction at the rate of 1,87 to the level of basic prices as of January 1, 2001 and 14,42 to the level of basic prices as of January 1, 1995; survey works for construction at the rate of 1,91 to the level of basic prices as of January 1, 2001 and 21,75 to the basic prices estimated on the basis of the Reference Books of Basic Prices and the Collected Prices of Survey Works for Capital Construction as of January 1, 1991.

Letter of the Ministry of Finance of the Russian Federation No. 03-03-04-/1/89 of July 19, 2005 on the Procedure for Recognising the Outlays Connected with Making a Lease Contract

When estimating the tax base for profit tax, there may be accounted, among other outlays, the expenses related to the preparation of a land surveying plan of the boundaries of a land plot, to the obtainment of documents from a technical inventory bureau, payment of the state duty for registration of a lease contract by a justice institution. However, with this, such expenses must comply with the criteria established by Item 1 of Article 252 of the Tax Code of the Russian Federation. When estimating receipts and expenditures on the basis of the accrual method, these expenses shall be referred to indirect taxes and may be referred in full to the outlays of the current reporting (tax) period.