Monitoring of the Federal Legislation dated 29.07.2002

Federal Law No. 110-FZ of July 24, 2002 on the Amendments to Part 2 of the Tax Code of the Russian Federation and Some Other Acts of the Legislation of the Russian Federation

Part 2 of the Tax Code of the Russian Federation is extended to include the new Chapter 28 "Transport Tax". The object of taxation under the transport tax is automobiles, motorcycles, scooters, buses and other self-propelled machines and mechanisms - pneumatic and track-laying, airplanes, helicopters, ships, yachts, sail boats, cutters, snowmobiles, motor sleigh, motor boats, hydrocycles, non-self-propelled tow vessels and other water and air transport vehicles registered appropriately. The transport tax is introduced by the laws of the subjects of the Russian Federation defining the rates of the tax within the limits specified in Chapter 28, procedure and time of payment, forms of reports under the given tax. When introducing the tax, there may also be envisaged tax benefits and grounds for using them by the taxpayer.
The same Law abandons the tax on the owners of transport vehicles, highway user tax and increases excises for automobiles, gasoline, motor oils. It also introduces amendments to Article 10 of the Federal Law No. 110-FZ of August 6, 2001 defining the taxable base of the transient period for the profit tax.
The Federal Law is entered into force one month after the day of its official publication, except for the norms entered into force according to the special procedure. The majority of the provisions of the Federal Law are entered into force from January 1, 2003.

Federal Law No. 104-FZ of July 24, 2002 on the Amendments to Part 2 of the Tax Code of the Russian Federation and Some Other Acts of the Legislation of the Russian Federation and on Invalidation of Individual Acts of the Legislation of the Russian Federation on Taxes

Part 2 of the Tax Code of the Russian Federation is extended to include the new Chapter 26.2 "Simplified System of Taxation" and Chapter 26.3 "System of Taxation in the Form of the Uniform Imputed Income Tax for Individual Types of Activities".
Use of both systems of taxation by both organizations and independent entrepreneurs envisages replacement of:
profit tax (with the natural persons - income tax from natural persons for incomes obtained from entrepreneurial activities)
VAT,
sales tax,
property tax (with the natural persons - for the property used to carry out entrepreneurial activities),
uniform social tax.
Use of both systems of taxation does not exempt the taxpayers from insurance contributions for obligatory pension insurance.
The same Law exempts the payers of the uniform imputed income tax from the uniform social tax. The norm applies to relations emerging from January 1, 2002.
Special tax regimes envisaged in the new chapters of the Tax Code are entered into force from January 1, 2003.

Federal Law No. 102-FZ of July 24, 2002 on the Arbitrages in the Russian Federation

Regulates the procedure of creation and activities of arbitrages on the territory of the Russian Federation. In the Russian Federation, there may be permanent arbitrages and the ones for solving a particular dispute. The arbitrage, at the decision of the parties, may examine any dispute in civil relations if otherwise is not established in the Federal Law.
The Federal Law does not apply to international commercial arbitrage.
The Federal Law is entered into force from the day of its official publication.

Federal Law No. 101-FZ of July 24, 2002 on the Turnover of Lands of Agricultural Use.

Regulates relations pertaining to possession, use and management of the land plots of agricultural use, specifies the rules and restrictions that apply to turnovers of such land plots and shares in the right of common property, defines the terms of granting land plots in the state or municipal property and their withdrawal.
The use and turnovers of such land plots are regulated largely by the general rules of land and civil legislation and the Law actually specifies the system of restrictions and particulars of such rules.
The Law introduces, in particular, the norms aimed at prevention of forming of land plots not meeting the land planning requirements when the deals are concluded, at prevention of concentration of too large agricultural lands in the property of a single person, with the maximum area of agricultural lands possessed by a single person on the territory of a single administrative region of the subject of the Russian Federation being proposed to amount to at least 10% of the total area of the agricultural lands within the boundaries of the mentioned administrative region.
A special regime is fixed for foreign citizens, foreign legal entities, stateless persons, as well as legal entities with the share of a foreign person in the registered capital being greater than 50%. The Law envisages strict enough and consistent sanctions against the violation of the mentioned regime. Land plots (shares in the common property right for the land plot) of agricultural use purchased earlier in violation of the requirements of the Law are to be alienated from the proprietor within one year from the day of emergence of the right for this land plot (share in the common property right for the land plot) or within one year from the day when the body of the legal entity learned or was to learn of the circumstances resulting in the violation of the Law. Otherwise, such land plots are to be sold in public tenders.
The Law does not apply to land plots of agricultural use provided to citizens for housing, garage construction, countryside cottages, gardens, animal breeding, as well as to land plots occupied by buildings and structures.
The Federal Law is entered into force six months after its official publication.

Federal Law No. 99-FZ of July 24, 2002 on the Amendments to the Federal Law on the Federal Budget for the Year 2002

Refines and amends the provisions of the Law specifying the legal fundamentals of ensuring the restructuring of the debts (main debt and interest, penalties and fines) for organizations (enterprises) being the chief executors ( executors) of the state defence order.
The new wording is provided for the program of state internal borrowings of the Russian Federation for the year 2002.
The Federal Law is entered into force from the day of its official publication.

Decision of the Constitutional Court of the Russian Federation No. 14-P of July 22, 2002 on the Case of Constitutionality of a Number of Provisions of the Federal Law on the Restructuring of Credit Organizations, Items 5 and 6 of Article 120 of the Federal Law on Insolvency (Bankruptcy) Pursuant to Appeals of Citizens, Appeal of the Regional Public Organization "Association of Protection of the Rights of Stock-Holders and Investors" and Appeal of the OAO "Voronezh Design Bureau of Antenna and Feeder Devices"

The applicants challenged the provisions of the Federal Laws on the restructuring of credit organizations, on insolvency (bankruptcy) and on execution proceedings pertaining to the procedure and terms of conclusion and endorsement of the accord and satisfaction when restructuring the credit organizations, as well as the provisions of the Federal Law on the restructuring of credit organizations specifying the procedure and terms of reduction of the registered capital of a credit organization at its restructuring.
The Constitutional Court of the Russian Federation recognized as not contradicting the Constitution of the Russian Federation the challenged provisions of the Federal Laws on the restructuring of credit organizations and on insolvency (bankruptcy) inasmuch as they pertain to the procedure and terms of conclusion and endorsement of the accord and satisfaction at the restructuring of the credit organization.
The Decision is entered into force immediately after the annunciation.

Decision of the Government of the Russian Federation No. 553 of July 23, 2002 on the Endorsement of the Regulation on the Licensing of Purveying, Processing and Sale of the Waste and Scrap of Ferrous Metals

The licensing applies to the collection, purchase (purveying) of the waste and scrap of non-ferrous metals from natural persons and legal entities carried out by legal entities and independent entrepreneurs, the sorting, storage, selection, extraction, shredding, cutting, handling, pressing, briquetting, melting, as well as the sale or handing over of the waste and scrap of ferrous metals on the paid or free basis. The Regulation does not apply to the sale of waste and scrap building up as result of own production and to wholesale trade.
The licensing is vested in the bodies of state power of the subjects of the Russian Federation. The license is issued for 5 years. The earlier issued licenses preserve their force until expiry.

Decision of the Government of the Russian Federation No. 552 of July 23, 2002 on the Endorsement of the Regulation on the Licensing of Purveying, Processing and Sale of Waste and Scrap of Non-Ferrous Metals

The licensing applies to the collection, purchase (purveying) of the waste and scrap of non-ferrous metals from natural persons and legal entities carried out by legal entities and independent entrepreneurs, the sorting, storage, selection, extraction, cutting, handling, pressing, briquetting, melting, as well as the sale or handing over of the waste and scrap of non-ferrous metals on the paid or free basis. The Regulation does not apply to the sale of waste and scrap building up as result of own production.
The licensing is vested in the bodies of state power of the subjects of the Russian Federation. The license is issued for 5 years. The earlier issued licenses preserve their force until expiry.