Windfall tax for major companies to be introduced in Russia

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Monitoring of the Federal Legislation dated 19.04.2006

Federal Law No. 53-FZ of April 17, 2006 on the Amendments to the Land Code of the Russian Federation, Federal Law on the Entry into Force of the Land Code of the Russian Federation, Federal Law on the State Registration of the Rights for Immovable Property and Transactions with It and on Invalidation of Individual Provisions of the Legislative Acts of the Russian Federation

The amendments pertain to issues of delimitation of state property for land. The Federal Law lists the land plots and lands included in the property of the Russian Federation, subjects of the Russian Federation and municipal formations. Specifies the procedure of state registration of the proprietary right for land plots in cases of delimitation of the state property for land.

The amendments envisage that disposal of the land plots included in the property of the Russian Federation, subjects of the Russian Federation and municipal formations is possible only after the state registration of the proprietary right for them. As to the land plots where there is not delimitation, they may be disposed of without the state registration of the proprietary rights.

Disposal of the land plots if there is no delimitation of state property rests with the bodies of local government of the municipal regions, urban districts, and in the residential settlements being administrative centres, capitals of the subjects of the Russian Federation - by the bodies of local government of the mentioned residential settlements if otherwise is not envisaged in the laws of appropriate subjects of the Russian Federation.

The Federal Law is entered into force from July 1, 2006.

Decision of the Government of the Russian Federation No. 217 of April 17, 2006 on the Endorsement of the Rules of Financing in 2006 of Expenses for Social Programs of the Subjects of the Russian Federation, Including the Targeted Social Aid to Non-Working Pensioners, and for the Measures to Eliminate the Consequences of Emergency Situations and Natural Disasters Pertaining to Targeted Social Aid to Non-Working Pensioners at the Expense of Resources of the Pension Fund of the Russian Federation

Specifies the procedure of allocation, spending and control over the use for designated purposes of resources of the Pension Fund intended for financing in 2006 of social programs of subjects of the Russian Federation, including the targeted social aid to non-working pensioners and the measures to eliminate the consequences of emergency situations and natural disasters pertaining to the targeted social aid to non-working pensioners.

The Pension Fund shall finance social programs envisaging expenses to enhance the material and technical base of state and municipal stationary and out-patient institutions of social services for the population. The financing shall also apply to expenses of rendering of the targeted social aid to non-working pensioners, in particular, for the purchase of first-necessity items and subscription to periodicals, lump sum material aid, gasification of homes of non-working pensioners.

The Decision envisages a procedure requiring the bodies of executive power of the subjects of the Russian Federation to submit to the Pension Fund social programs with substantiation of expenses and terms of rendering of targeted social aid, as well as requests drawn up on their basis to finance appropriate expenses, coordinated with the territorial bodies of the Pension Fund. The mentioned social programs and requests shall be processed within 15 days from the date of receiving.

Financing of measures to eliminate the consequences of emergency situations and natural disasters pertaining to targeted social aid to non-working pensioners shall be arranged in compliance with decisions of the Government of the Russian Federation. Appropriate payments shall be made by the territorial bodies of the Pension Fund on the basis of the lists of victim non-working pensioners submitted by the bodies of executive power of the subjects of the Russian Federation.

Decision of the Government of the Russian Federation No. 214 of April 17, 2006 on the Endorsement of the Rate of the Import Customs Duty for Individual Types of Native and Modified Starches

Endorses a uniform amount of the rate of the import customs duty for individual types of native and modified starches with the codes according to the Foreign Trade Commodity Nomenclature 1108 11 000 0, 1108 12 000 0, 1108 13 000 0, 1108 14 000 0, 1108 19 900 0, 3505 10 100 0, 3505 10 500 0, 3505 10 900 0. The rate amount makes 20% of the customs cost for the given types of commodities, however, not less than EUR 0.06 per kg.

Earlier, such rate of the import customs duty was fixed for only modified starches with the codes 3505 10 100 0, 3505 10 500 0, 3505 10 900 0. The rate for the wheat, maize, potato, manioc starches made 10% of the customs cost.

The Decision is entered into force one month after the day of its official publication.

Order of the Ministry of Finance of the Russian Federation No. 25n of February 10, 2006 on the Endorsement of the Instruction on Budget Accounting Work

Provides a new wording for the Instruction on the budget accounting work, including the chart and correspondence of accounts.

Specifies, in particular, that in the absence in the correspondence of budget accounts of operations to register activities of institutions, chief administrators of resources of the budget may define the necessary correspondence of accounts if it does not contradict the Instruction on the budget accounting work.

The Order introduces a new off-balance account 19 "Unidentified Receipts of the Budgets of Past Years". The account is intended for registration by the bodies providing for budget execution of unidentified receipts of the past reporting periods written off in the final turnovers as a financial result of past reporting periods in cash execution of the budget that must be clarified in the following fiscal year. Analytical work for the account is provided in the Sheet of Unidentified Receipts.

The Instruction is extended to include two new appendices: Table of Correspondence of the Budget Account Code with the Code of Classification of Incomes, Agency, Functional Classification of Expenses of Budgets, Classification of Sources of Financing of the Deficit of Budgets; and the Classification of Operations of the Sector of State Management.

The Order applies to relations emerging from January 1, 2006.

Registered in the Ministry of Justice of the Russian Federation on April 11, 2006. Reg. No. 7674.

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