Windfall tax for major companies to be introduced in Russia

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Monitoring of the Federal Legislation dated 29.08.2003

Information Letter of the Presidium of the Higher Arbitration Court of the Russian Federation No. 72 of July 24, 2003 "Review of the Practice of Application by Arbitration Courts of the Measures to Back up the Claims Pertaining to Circulation of Securities"

The review reflects the issues pertaining to the measures taken by arbitration courts to backup the claims pertaining to circulation of securities.
Arrest of stocks imposed by the arbitration court to back up the claim means only the prohibition for the holder of the stocks to dispose of them as an object of civil circulation, but not a prohibition to use them and implement the right to participate in the management of the joint-stock company certified with them.
The voting stocks belonging to a stock-holder prohibited by the arbitration court from voting with these stock at the general meeting of stock-holders on one of the issues of the agenda must be taken into account when determining the quorum of the decision on the appropriate issue.
If the stocks suggested for the arrest by the claimant are not being the subject of the dispute, form the property directly affecting production activities of the company and are subject to third-priority sanctions, the arrest for these securities may only be imposed in the absence with the debtor of other property subject to the first- and second-priority sanctions.

Letter of the Department of the Methodology of Accounting Work and Reporting of the Ministry of Finance of the Russian Federation No. 16-00-14/219 of July 14, 2003

Accounting losses must be recorded in accounting work on the debit of Account 99 "Profits and Losses", with the amount of the tax accrued for the tax losses reducing the profit tax in the future reporting periods, on the debit of Account 09 "Deferred Tax Assets".
If the organisation did not form deferred taxes for the year 2002 in between the reports and did not record them in the balance report as of January 1, 2003, the tax losses as of January 1, 2003 is regarded as a permanent difference participating only in the estimates of the taxable base and does not form accounting profits before its redemption.

Letter of the Department of Methodology of Accounting Work and Reporting of the Ministry of Finance of the Russian Federation No. 16-00-14/220 of July 14, 2003

Explains that PBU 18/02 "Registration of Profit Tax Estimates" applies to only those types of economic activities (and, therefore, the incomes and expenses pertaining to these types of activities) making the organisation, as a result, the payer of the profit tax.

Letter of the Department of Methodology of Accounting Work and Reporting of the Ministry of Finance of the Russian Federation No. 16-00-12/24 of July 14, 2003

Explains the procedure of use of the forms of strict-reporting documents endorsed by the Ministry of Finance of the Russian Federation in coordination with the State Interagency Expert Commission for Cash Registers (slips, accommodations, tickets, tokens etc.) to be used in payments with the population to record available cash. Pursuant to the Federal Law No. 54-FZ of May 22, 2003 on the use of cash registers in cash payments and/or payments using pay cards, the mentioned forms remain in force before the adoption of the appropriate Decision of the Government of the Russian Federation.

Decision of the Government of the Russian Federation No. 451 of July 31, 2003 on the Governmental Commission for the Administrative Reform

The Governmental Commission for the Administrative Reform shall be the coordinating body formed to implement priority directions of the administrative reform endorsed by the Decree of the President of the Russian Federation No. 824 of July 23, 2003.

      One of the goals of the Commission is restriction of the interference of the state in economic activities of entrepreneurial subjects including the elimination of excessive state regulation, elimination of the redundancy of the functions and authority of the federal bodies of executive power. To execute the mentioned goal, the Commission provides for the preparation and examines draft federal laws, other normative legal acts necessary for the elimination of the elements of state regulation preventing development of market mechanisms of regulation of economic processes, as well as the system of self-regulation of such processes.

Issues of Application of the Regulation of the Central Bank of Russia No. 222-P of April 1, 2003 on the Procedure for Making Cashless Payments for the Natural Persons in the Russian Federation

Explains that the opening of bank accounts provides to natural persons opportunities to use all forms of cashless payments specified in the Civil Code of the Russian Federation (payment orders, letters of credit, checks, letters of collection) that, in the case of the deposit account, are available to the client only as payment operations, i.e. transfer of monetary recourses from the account or entry of the resources received in the bank in favour of the depositor.

      Regulation No. 222-P does not apply to the procedure of opening and use of accounts of natural persons opened to register operations involving bank cards.

Issues of Application of the Regulation of the Central Bank of Russia No. 2-P of October 3, 2002 on Cashless Payments in the Russian Federation

Explains the procedure of filling of the fields (62) "Received in the Bank" and (71) "Written off from Account" in the redrawn payment order when the payments are made by the credit organisation (branch) to the order of another credit organisation (branch) to the third credit organisation (branch).

      Also explains the procedure of filling of the mentioned fields of the summary payment order presented by participants of payments in the institution of the Bank of Russia when information is transmitted via communication channels.

Decree of the President of the Russian Federation No. 866 of August 1, 2003 on the Suspension and Invalidation of Some of the Decrees of the President of the Russian Federation Pursuant to the Adoption of the Federal Law on the Federal Budget for the Year 2003

Until January 1, 2004 suspends a number of norms pertaining to the reimbursement from the federal budget of some of the expenses. In particular, suspends the norm on the reimbursement of food expenses to post-graduate students in the amount of two roubles per person per day. Also suspends allocation of resources from the federal budget to finance scientific research and design works of civil destination in the amount of at least 3% of its spendings portion while increasing the amount of these resources on the annual basis with stabilisation of the economy.

      The Decree is entered into force from the day of its signing.

Order of the Ministry of Internal Affairs of the Russian Federation No. 570 of July 23, 2003 on the Pasting in the 1974 Passport of the Citizen of the USSR with the Stamp of the Citizenship of the Russian Federation of the Photographs of Children Being the Citizens of the Russian Federation under 14 Years of Age

Until December 31, 2003, at the desire of the citizen of the Russian Federation travelling by the railway transport in transit through the territory of Lithuania from the territory of the Russian Federation to the Kaliningrad Province and back, his 1974 passport of the citizen of the USSR with the stamp of the citizenship of the Russian Federation may be used to paste in on page 23 the photographs of children being the citizens of the Russian Federation under 14 years of age.

      The pasting of the photographs is vested in the body of internal affairs of the Russian Federation at the place where the citizen applies for it while presenting the documents confirming the citizenship of the Russian Federation with the child.

      Registered in the Ministry of Justice of the Russian Federation on July 29, 2003. Reg. No. 4936.

Letter of the Ministry of Taxation of the Russian Federation No. SA-6-04/825@ of July 25, 2003 on Some Issues of Taxation of Incomes of Bankruptcy Commissioners

The entrance and annual fees paid by the bankruptcy commissioner to be admitted to a self-regulating organisation are not included in professional tax exemptions reducing the taxable base for the income tax from natural persons and are paid by the bankruptcy commissioner at the expense of the resources left over after the payment of the income tax.

      Insurance contributions under the contract of insurance of the responsibility in case of the damage to persons involved in the bankruptcy case paid by the bankruptcy commissioner are included in the expenses taken into account in the determination of the taxable base for the income tax.

Order of the State Customs Committee of the Russian Federation No. 327-r of June 24, 2003 on the Customs Registration of Transport Vehicles Imported Temporarily to the Customs Territory of the Russian Federation

Imported transport vehicles (codes according to the Foreign Trade Commodity Nomenclature of the Russian Federation 8701 20 101 2, 8704 23 910 4, 8716 39 300 1, 8716 39 300 2, 8716 39 590 1) placed under the temporary import (export) customs regime are fully exempted from the customs duties, taxes, except for the customs fees for the customs registration for the whole time of operation of these transport vehicles under the condition that they are used for international cargo transportation.
The time of the temporary import of the transport vehicle is fixed by the customs bodies according to the time of operation declared by the person moving the transport vehicle.
Registered in the Ministry of Justice of the Russian Federation on August 1, 2003. Reg. No. 4945.

Order of the Ministry of Justice of the Russian Federation No. 179 of July 24, 2003 on the Procedure of Submission and Examination of Materials to Prepare the Orders of the Ministry of Justice of Russia on Unwanted Stay (Residence) in the Russian Federation of a Foreign Citizen or Stateless Person Being a Member (Participant) of a Public or Religious Association

Endorses the rules of interaction of the bodies of state power in cases when a public or religious association carries out extremist activities, other illegal activities, when there are signs of extremism in their activities and facts of active participation in these activities of foreign citizens and stateless persons being members (participants) of these associations.

      Registered in the Ministry of Justice of the Russian Federation on August 1, 2003. Reg. No. 4944.

Decision of the Ministry of Labour of the Russian Federation No. 35 of June 17, 2003 on the Amendments to the Decision of the Ministry of Labour of the Russian Federation No. 37 of May 16, 1994 on the Endorsement of the Explanation on the Procedure of Fixing and Estimation of the Length of Work for Getting Percent Supplement to the Earnings of the Persons Working in the Regions of the Far North, Similar Localities, in the Southern Regions of the Far East, Krasnoyarsk Territory, Irkutsk and Chita Provinces, Republic of Buryatia, Republic of Tuva, Republic of Khakasia

The explanation of the Ministry of Labour of the Russian Federation now does not contain the procedure of fixing and estimation of the length of work for getting percent supplement to the earnings of the persons working in the Republic of Tuva.

      Institutes the new, expanded list of reasons of termination of the labour contract not permitting to sum up the length of work at the rehire, which affects the amount of the percent supplement. The mentioned reasons include, in particular, violation of the safety requirements by the employee if this violation inflicted severe consequences or was known to create a real hazard of such consequences, as well as a single sever violation by the head of the organisation (branch, representation), his deputies of their labour duties.

      Registered in the Ministry of Justice of the Russian Federation on July 29, 2003. Reg. No. 4932.

Decision of the Government of the Russian Federation No. 468 of July 31, 2003 on the Amendments to the Regulation on the Federal Service of the Land Cadastre of Russia

The list of functions vested in the Federal Service of the Land Cadastre of Russia now does not include the drawing up of the lists of the payers of the land tax and rent for the land, participation in land tenders (auctions, contests), as well as the licensing of geodesy and cartography in design and survey works during land-planning measures and the keeping of the State Land Cadastre.

Decision of the Government of the Russian Federation No. 466 of July 31, 2003 on the Amendments to the Decision of the Government of the Russian Federation No. 369 of May 31, 2002

The changes pertain to the procedure of determination of the normative price for the state or federally owned stocks due for privatisation if more than one year passed from the date of registration of the joint-stock company formed during privatisation to the date of determination of the normative price of its stocks, or if the joint-stock company due for privatisation was not formed during privatisation.

Decision of the Government of the Russian Federation No. 465 of July 31, 2003 on the Amendment to the Regulation on the Ministry of Transport of the Russian Federation

The list of functions vested in the Ministry of Transport of Russia now does not include assistance in creation and functioning of financial and industry groups involving organisations of the transport complex, as well as protection of interests of the rights of consumers of the services of the air, sea, internal water, highway, urban electric and industrial transport.

Decision of the Government of the Russian Federation No. 458 of July 31, 2003 on the Publication and Amount of Payment for the Publication of the Notifications of the Development of the Draft National Standard and of the Termination of the Public Discussion of the Draft National Standard

The notifications of the development of the draft national standard and of the termination of its public discussion are published by the State Standards Committee of the Russian Federation in the Internet within 10 days and in the information guide "National Standards" within 2 moths from the day of receiving of the documents necessary for the publication.

      The notification of the termination of the public discussion of the draft national standard is published no sooner than 2 months after the day of publication of the notification of the development of the mentioned draft standard. The Decision provides the forms of the notifications.

      The amount of payment for the publication of the notifications of the development of the draft national standard and of the termination of the public discussion of the draft national standard is Rbl 1,000 per sheet of the original notification typed on one side.

Order of the Ministry of Taxation of the Russian Federation No. BG-3-15/413 of July 21, 2003 on the Endorsement of the Regulation on the Interregional Inspection of the Ministry of Taxation of Russia for the Federal District

Interregional inspections of the Ministry of Taxation of the Russian Federation are interregional level territorial bodies for the federal district and form the uniform centralised system of tax bodies of the Russian Federation. Interregional inspections enjoy all rights and duties of the tax bodies. The functions of the mentioned inspections include, in particular, on-site checks, analysis of schemes of avoidance of taxation, examination of taxpayer appeals and other functions.

      Registered in the Ministry of Justice of the Russian Federation on August 1, 2003. Reg. No. 4946.

Order of the Ministry of Justice of the Russian Federation No. 180 of July 28, 2003 on the Amendments to the Order of the Ministry of Justice of the Russian Federation No. 99 of April 10, 2002

Changes the forms of registers of notary actions, notary certificates and endorsement notes on the deals and certified documents.

      Registered in the Ministry of Justice of the Russian Federation on August 1, 2003. Reg. No. 4941.

Direction of the Central Bank of Russia No. 1305-U of July 9, 2003 on the Invalidation of Some of the Normative Acts of the Bank of Russia

Invalidates the Regulation of the Bank of Russia No. 137-P of April 12, 2001 with amendments pursuant to the adoption of the new procedure of building of reserves for possible losses by credit organisations.

      The Direction is entered into force from March 1, 2004.

Letter of the Ministry of Taxation of the Russian Federation No. BG-10-22/406 of June 23, 2003 on the Implementation of the Federal Law No. 54-FZ of May 22, 2003 on the Use of Cash Registers in Cash Payments and/or Payments Using Pay Cards

Lists the normative acts to be adopted by the Government of the Russian Federation and the Bank of Russia in execution of the mentioned Law. To provide for the Law efficiency in the current period, it is necessary to take into account the earlier issued Decisions of the Ministry of Finance of the Russian Federation, tax bodies and the subjects of the Russian Federation on the mentioned issues.
For the period of preparation of the normative basis, the existing procedure of entry of models of cash registers in the State Register shall preserve.

Letter of the Ministry of Finance of the Russian Federation No. 03-01-01/11-233 of July 29, 2003

Explains the procedure of application of Form 10 "Payment Slip" (OKUD code 0504510) specified in the Instruction on accounting work in budget-supported organisations endorsed by the Order of the Ministry of Finance of the Russian Federation No. 107n of December 30, 1999.
The given form is a strict-reporting one and is intended for cash reception by authorised persons of the budget-supported institution without cash registers.
The given document form has undergone re-coordination in the State Interagency Expert Commission for Cash Registers and, according to the excerpt from the protocol of the session of this Commission No. 2/74-2003 of June 24, 2003, was prolonged without restrictions.

Decree of the President of the Russian Federation No. 925 of August 7, 2003 on the Amendment to the Decree of the President of the Russian Federation No. 1194 of November 29, 1995 on the Federal Power Supply Commission of the Russian Federation and on Invalidation of Some of the Decrees of the President of the Russian Federation

The changes are stipulated by the entry into force of the Laws No. 35-FZ on the electric power industry and No. 38-FZ of March 26, 2003 on the amendments to the Federal Law on the state regulation of tariff rates for electric and thermal power in the Russian Federation.
The Decree specifies that the Federal Power Supply Commission of the Russian Federation is the body in charge of the regulation of natural monopolies fulfilling the functions of state regulation of tariff rates for electric and thermal power in compliance with the mentioned Laws.
The Decree is entered into force from the day of its official publication.

Decision of the Government of the Russian Federation No. 472 of August 8, 2003 on the Amendments to the Customs Tariff of the Russian Federation

Adjusts the codes of the Foreign Trade Commodity Nomenclature of the Russian Federation for a number of commodities (plates, sheets, wool, turning machine-tools, antennas etc.). The rates of the import customs duties are not changed.
The Decision is entered into force one month after the day of its official publication.

Decision of the Ministry of Labour of the Russian Federation No. 59 of July 28, 2003 on the Amendments to the Classification Guide of Positions of Managers, Specialists and Other Officials

The guide is extended to include new qualification characteristics: deputy director for public relations, manager for public relations, chief of department of public relations and specialist for public relations, as well as provides their official duties and qualification requirements.

Official Explanation of the Central Bank of Russia No. 29-OR of July 28, 2003 on the Application of Item 3.1 of the Regulation of the Bank of Russia No. 215-P of February 10, 2003 on the Method of Determination of Own Resources (Capital) of Credit Organisations

According to the mentioned Item 3.1, the surplus of the cost of property at the expense of the reassessment of fixed assets carried out no sooner than once a year (as of January 1 of the reporting year) is included in the estimate of the additional capital no sooner than once in three years on the basis of the data of the most recent annual accounting report confirmed by an audit organisation. In this case, the mentioned period is calculated from the moment of the most recent inclusion in the additional capital of the credit organisation of the surplus of the cost of property at the expense of the reassessment of fixed assets carried out by the credit organisation and confirmed by an audit organisation.

Letter of the Social Insurance Fund of the Russian Federation No. 02-18/05-5101 of July 23, 2003 on the Federal Law No. 118-FZ of July 7, 2003 on the Amendments to the Federal Law on the Obligatory Social Insurance against Industrial Accidents and Occupational Diseases

Explains individual altered provisions of the mentioned Law having entered into force on July 10, 2003 pertaining to the payment for the additional expenses for the medical, social and professional rehabilitation, to the calculation, assigning and effecting insurance payments, as well as individual rights of the insurer.
Since the new wording of the Law does not envisage the payment for the additional feeding, it is made only if the mentioned type of insurance support was assigned to the insured before entry into force of the changes according to the program of rehabilitation of the victim and within its specified time limits.
When calculating monthly insurance payments, one should keep in mind that all changed introduced in Article 12 of the Federal Law do not have retroactive effect. Assigned monthly insurance payments may not be recalculated.

Letter of the Social Insurance Fund of the Russian Federation No. 02-18/05-4751 of July 10, 2003 on the Calculation of the Temporary Disability and Maternity Allowances to Attorneys, Independent Entrepreneurs, Natural Persons Not Recognised As Independent Entrepreneurs, Members of the Tribal, Family Communities of the Small Peoples of the North

Lists the documents used to calculate the temporary disability and maternity allowances to the mentioned citizens.
Thus, the temporary disability allowance is calculated in the amounts specified depending on the length of uninterrupted work, as well as other conditions envisaged in the actual normative legal acts. The calculated temporary disability and maternity allowance may not be greater than the maximum amount of the allowance for the full calendar month (Rbl 11,700).

Decree of the President of the Russian Federation No. 933 of August 8, 2003 on the Amendment to the State Program of Privatisation of State and Municipal Enterprises in the Russian Federation Endorsed by the Decree of the President of the Russian Federation No. 2284 of December 24, 1993 on the State Program of Privatisation of State and Municipal Enterprises in the Russian Federation

The list of the federally owned objects and enterprises prohibited from privatisation now does not include railways, objects and property of the railway transport directly involved in the transportation process and rescue works.

Order of the Ministry of Internal Affairs of the Russian Federation No. 555 of July 17, 2003 on the Endorsement of the Instruction on the Procedure for Paying out Lumpsum Allowances in the Framework of the Ministry of Internal Affairs of Russia to Servicemen, Citizens Called up for the Muster and Members of Their Families

Defies the procedure of drawing up of the documents necessary to take the decision to pay out lumpsum allowances to contract servicemen, officers called up to the military serve under the Decree of the President of the Russian Federation, draft soldiers, sailors, sergeants and sergeantmajors, students of the military institutions of higher professional education before concluding contracts with them, citizens called up for the muster and members of their families. Also defines the procedure of control over the correctness of drawing up of the documents and the reasons of paying out lumpsum allowances to servicemen and members of their families.
Provides the form of the application for the allowance.
Registered in the Ministry of Justice of the Russian Federation on August 5, 2003. Reg. No. 4953.

Letter of the Ministry of Finance of the Russian Federation No. 16-00-25/04 of July 29, 2003

Explains that the use of the business trip certificate, Form T-10, to draw up business trips of the employees of the representation of a foreign organisation in the presence of the trip orders, advance payment reports with attached necessary documents is not obligatory for accounting purposes.

Decision of the Government of the Russian Federation No. 483 of August 9, 2003 on the Cost of Living in Per Capita Figures and for the Main Sociodemographic Groups of Population for the Whole of the Russian Federation for the II Quarter of 2003

Fixes the cost of living for the whole of the Russian Federation for the II quarter of 2003: Rbl 2,137 per capita, Rbl 2,328 for able-bodied population, Rbl 1,629 for pensioners, Rbl 2,119 for children.

Order of the Ministry of Finance of the Russian Federation No. 67n of July 22, 2003 on the Forms of Accounting Reports of Organisations

Provides new forms of accounting reports for legal entities (other than credit, insurance and budget-supported organisations): accounting balance report, report of profits and losses, report of changes in capital, report of the flow of monetary resources, appendix to the accounting balance report, report of the use of received resources for their designated purposes.
Also endorses the Directions on the volume of the forms of accounting reports and the Directions on the procedure of drawing up accounting reports.
The Order of the Ministry of Finance of the Russian Federation No. 4n of January 13, 2000 on the forms of accounting reports of organisations is invalidated.
The new Order is entered into force beginning with accounting reports for the year 2003.
According to the Statement of the Ministry of Justice of the Russian Federation No. 07/8121-AK of August 5, 2003, the Order does not need state registration.

Decision of the Ministry of Labour of the Russian Federation No. 41 of June 30, 2003 on the Particulars of Dual-Job Holding with Pedagogical, Medical, Pharmacy and Cultural Workers

The mentioned categories of employees may hold dual jobs on conditions of the labour contact when they are free from their main job at the place of their main job or in other organisations, including the similar position, speciality, profession and in cases of reduced length of working time.
The Decision fixes restrictions of the length of dual-job holding within one month. Lists the types of works not regarded as dual-job holding and not requiring conclusion of the labour contract. They are permitted in the main working time if the employer agrees to it.
Registered in the Ministry of Justice of the Russian Federation on August 7, 2003. Reg. No. 4963.

Order of the State Customs Committee of the Russian Federation No. 804 of July 21, 2003 on the Places of the Customs Registration of Beer

Lists the places of the customs registration of beer classified in Headings 2202 90 100 1, 2203 00 of the Foreign Trade Commodity Nomenclature of the Russian Federation and imported by the highway and railway transport to recipients in Moscow and the Moscow Province.
The Order is entered into force 30 days after the official publication.
Registered in the Ministry of Justice of the Russian Federation on August 7, 2003. Reg. No. 4960.

Order of the Ministry of Education of the Russian Federation No. 3177 of July 28, 2003 on the Endorsement of the Sample Form of the Contract for Paid Educational Services in the Sphere of Professional Education

The sample contract form shows the level, degree of education, main and/or additional educational programs, types of educational services, as well as the form of implementation of the educational program.
Specifies that the executor may implement independently the educational process, choose the system of marks, forms, procedure and periods of intermediary certification of the consumer. The consumer may get full and true information of assessment of his knowledge and skills, as well as of criteria of this assessment.
Reimbursement of the damage incurred by the consumer on the property of the executor is vested in the orderer of services.
Registered in the Ministry of Justice of the Russian Federation on August 5, 2003. Reg. No. 4956.

Order of the Ministry of Education of the Russian Federation No. 2833 of July 1, 2003 on the Opportunities to Teach Religion to Children Outside the Framework of Educational Programs Granted by State and Municipal Educational Institutions to Religious Organisations

Teaching religion to children in the state and municipal educational institutions by religious organisations is permitted only with consent of the children studying in the educational institutions and to requests of their parents (legal representatives). The request should be drawn up as a written application to the administration of the educational institution.
Registered in the Ministry of Justice of the Russian Federation on August 5, 2003. Reg. No. 4955.

Direction of the Central Bank of Russia No. 1310-U of July 21, 2003 on the Amendments to the Regulation of the Bank of Russia No. 203-P of November 5, 2002 on the Procedure of Carrying out of Deposit Operations by the Central Bank of the Russian Federation with Credit Organisations in the Currency of the Russian Federation

Specifies that the Bank of Russia carries out deposit operations using software and hardware of the authorised trade system implying an organisation providing, on the basis of the contract with the Bank of Russia, for the procedure of conclusion of deposit deals between the Bank of Russia and credit organisations in the framework of the deposit operations carried out by the Bank of Russia.
When the Bank of Russia carries out deposit operations using the authorised trade system, the collection, registration of the requests (offers) of credit organisations for participation in deposit operations, registration of counterbids (accept) of the Bank of Russia to the request of the credit organisation are carried out according to the rules of the authorised trade system.
The Direction is entered into force 10 days after the day of its publication.
Registered in the Ministry of Justice of the Russian Federation on August 5, 2003. Reg. No. 4954.

Letter of the Ministry of Taxation of the Russian Federation No. VG-6-01/821 of July 24, 2003 on the Changes to the Procedure of Payment of the Value Added Tax Pursuant to the Entry into Force of Chapter 26.4 of the Tax Code

Explains the particulars of VAT payment pursuant to the entry into force from June 10, 2003 of Chapter 26.4 of the Tax Code of the Russian Federation "Taxation System in Product-Sharing Agreements"
Beginning with the mentioned date, exemption from VAT for commodities, (works, services) intended to fulfil the product-sharing agreement is not granted according to established procedure to contractors (suppliers, carriers) of investors (operators) under product-sharing agreements.

Decision of the Government of the Russian Federation No. 485 of August 11, 2003 on the List of Social Indications for an Artificial Interruption of Pregnancy

Social indications for an artificial interruption of pregnancy are:
- available court ruling depriving of or restricting parental rights;
- pregnancy as a result of a rape;
- woman imprisonment;
- group I-II disability with the husband or death of the husband during pregnancy.

Order of the Ministry of Internal Affairs of the Russian Federation No. 525 of July 7, 2003 on the Amendments to the Normative Legal Act of the Ministry of Internal Affairs of the Russian Federation

Changes the manual of the service of the highway inspection and organisation of traffic of the State Highway Inspection of the Ministry of Internal Affairs of the Russian Federation.
Refines the functions, rights and duties of the service of the highway inspection and organisation of traffic. In particular, omits the provision stating that the mentioned services may impose sanctions for administrative violations, as well as reveal violations of the license requirements and terms. Defines in more detail the functions in the sphere of control over construction, reconstruction and repair of highways, highway structures, railroad crossings, lines of the urban electric transport. Provides the new form of the act of revealed drawbacks in the maintenance of highways, highway structures and technical means of organisation of traffic.
Registered in the Ministry of Justice of the Russian Federation on August 8, 2003. Reg. No. 4968.

Order of the Ministry of Justice of the Russian Federation No. 189 of August 6, 2003 on the Endorsement of the Procedure of Work of Commissions in Organisation of the Theory Examination in the Framework of the Uniform Program of Training of Bankruptcy Commissioners

Specifies the procedures of building and work of commissions in organisation and carrying out of the theory examination for the persons having taken the full course of training in the framework of the uniform program of training of bankruptcy commissioners and for the persons having mastered the program independently (through extramural studies).
Endorses the form of the certificate of the passing of the theory examination in the framework of the uniform program of training of bankruptcy commissioners.
Registered in the Ministry of Justice of the Russian Federation on August 8, 2003. Reg. No. 4964.

Order of the Ministry of Public Health of the Russian Federation, Ministry of Justice of the Russian Federation and the Social Insurance Fund of the Russian Federation No. 316/185/180 of July 14, 2003 on the Endorsement of the Procedure of Carrying out of Expert Evaluation of the Temporary Disability of Detained Convicts Attracted to Paid Labour and Issue of Documents to Them Certifying the Temporary Disability

The document certifying the temporary disability of the convicts attracted to paid labour is the disability slip issued in cases of disease (injury) causing temporary disability, in cases of pregnancy and delivery. The disability slip is issued by the physician of the medical treatment and prevention institution of the criminal execution system or - if he is not available - by a practicing physician of the public health institution of the subject of the Russian Federation.
Disability slips are not handed out to the convicts serving the term in corrective institutions.
Registered in the Ministry of Justice of the Russian Federation on August 7, 2003. Reg. No. 4961.

Letter of the Ministry of Taxation of the Russian Federation No. 05-1-11/1143 of July 22, 2003 on the Uniform Social Tax

Explains that from January 1, 2003, the new Tax Code of the Russian Federation does not contain the norms defining the particulars of application of the uniform social tax to payments in favour of foreign citizens, i.e. taxation of the given category of citizens must be arranged according to the commonly accepted procedure.
If a foreign organisation carries out activities in the Russian Federation, there emerges the duty with the given organisation to pay the uniform social tax regardless of whether or not there are payments in favour of foreign or Russian citizens abroad or on the territory of the Russian Federation.
If the earnings to a foreign citizen are paid out in a foreign currency, and the tax is paid in roubles, the rate of the given currency should be used as of the day when the payment and other remuneration are calculated in favour of the natural person.

Letter of the Ministry of Taxation of the Russian Federation No. ShS-6-22/738 of July 4, 2003 on the Decision of the State Interagency Expert Commission for Cash Registers of June 24, 2003

Extends the period of use of the strict reporting document, Form 10 "Payment Slip" (OKUD code 0504510), intended to register acceptance of cash from natural persons in budget-supported organisations.
Besides, coordinates with the Ministry of Finance of the Russian Federation as strict-reporting documents some forms pertaining to the payment for the veterinary services, forms of suburban and travel tickets, as well as the fine slip for administrative violations on the railway transport and other.
The use of strict-reporting documents coordinated by the mentioned Decision of the State Interagency Expert Commission for Cash Registers before they are endorsed by the Ministry of Finance of the Russian Federation is not fined.

Decision of the Government of the Russian Federation No. 491 of August 12, 2003 on the Endorsement of the Index of Growth of the Average Monthly Earnings in the Russian Federation for the Year 2002 and the Index of Growth of Incomes of the Pension Fund of the Russian Federation per Pensioner Allocated to Pay out the Insured Part of the Labour Pension for the Year 2002

The index of growth of the average monthly earnings in the Russian Federation for the year 2002 is fixed in the amount of 1.35. The index of growth of incomes of the Pension Fund of the Russian Federation for the year 2002 allocated to pay out the insured part of the labour pension is fixed in the amount of 1.307 per pensioner.

Decision of the Government of the Russian Federation No. 489 of August 12, 2003 on the Stipends to Post-Graduate and Doctoral Students of the State Institutions of the Higher Professional Education and Scientific Organisations

From September 1, 2003, increases the stipends for post-graduate and doctoral students of the state institutions of the higher professional education and scientific organisations: from Rbl 500 to Rbl 1,000 for post-graduate students and from Rbl 1,000 to Rbl 2,000 for doctoral students.

Decision of the Government of the Russian Federation No. 486 of August 11, 2003 on the Endorsement of the Rules of Determination of the Size of the Land Plots to Locate the Aerial Power Transmission Lines and Power Transmission Poles

Specifies the procedure of determination of the size of the land plots for the location of the aerial power transmission lines of all voltage classes and power transmission poles regardless of the form of ownership and agency affiliation of these lines.

Order of the Ministry of Education of the Russian Federation No. 2994 of July 10, 2003 on the Endorsement of the Sample Form of the Contract for Paid Educational Services in the Sphere of General Education

Endorses three forms of the contract for paid educational services: rendered by the state and municipal institutions of general education, non-state educational organisations and independent entrepreneur.
The sample contract specifies the duty of the executor to display respect for the personality of the consumer when rendering additional educational services, to protect him against any forms of physical and psychic violence, as well as to provide conditions to reinforce the moral, physical and psychic health and emotional well-being of the consumer taking into account his personal particulars.
Reimbursement of the damage incurred by the consumer on the property of the executor rests with the party ordering the services.
The duty of the consumer, in particular, includes observance of study discipline and commonly accepted norms of conduct (for example, showing respect for the teachers, administration and technical personnel of the executor and other students, avoiding infringement on their dignity).
Registered in the Ministry of Justice of the Russian Federation on August 13, 2003. Reg. No. 4971.

Decision of the Government of the Russian Federation No. 476 of August 8, 2003 on the Amendments to and Invalidation of Some of the Decisions of the Government of the Russian Federation on the Railway Transport

The amendments are introduced pursuant to the adoption of the set of federal laws regulating the functioning of the railway transport, as well as specifying the particulars of management and disposing of the property of this type of transport.
Also specifies that rehabilitated persons and persons recognised to be the victims of political repressions enjoy the right for free travel on the suburban railway transport using travel documents (tickets). Earlier this benefit was granted upon presentation of the certificate for the right of benefits.
Free travel for servicemen on the suburban railway transport is also granted to travel documents (tickets) issued on the basis of the personal identification documents.
The changes are also introduced in section "Group Eight" of the Classification of Fixed Assets Included in Amortisation Groups endorsed by the Decision of the Government of the Russian Federation No. 1 of January 1, 2002.
Invalidates Decisions of the Government of the Russian Federation No. 768 of October 7, 1992 on tariff rates for the cargo railway transportation, No. 997 of October 13, 1995 on the state regulation of prices (tariff rates) for the products (services) of natural monopolies, No. 1135 of October 1, 1998 on the beneficial railway tariff rates for transportation of potato, vegetables, fruits, fish and fish products and some other.

Decision of the Plenum of the Higher Arbitration Court of the Russian Federation No. 16 of July 31, 2003 on Some Issues of the Practice of Application of Administrative Responsibility Envisaged in Article 14.5 of the Code of Administrative Violations of the Russian Federation for the Failure to Use Cash Registers

Pursuant to the entry into force of the Federal Law No. 54-FZ of May 22, 2003, explains the procedure of application by courts of administrative sanctions for the sale by organisations and independent entrepreneurs of commodities (works, services) without cash registers.
The failure to use the cash register is implied to be the actual failure to use the cash register (including its absence), or use of a cash register not registered in the tax bodies, or use of a cash register not included in the State Register.
If the organisation or independent entrepreneur uses the types of cash registration equipment mentioned in the law other than cash registers, the mentioned persons may not be called to account for the failure to use cash registers.
Before endorsement by the Government of the Russian Federation of the strict-reporting forms issued to replace cash registers in specified cases, the use by organisations and independent entrepreneurs of strict-reporting documents according to the forms endorsed by the Ministry of Finance of the Russian Federation upon coordination with the State Interagency Expert Commission for Cash Registers may not serve as grounds to apply sanctions for the failure to use cash registers.
The Decision emphasis that the sale of alcoholic and alcohol-containing products to citizens without cash registers is an administrative violation implying responsibility envisaged in Article 14.5 of the Code of Administrative Violations, not Part 3 of Article 14.16 "Violation of the Rules of Sale of Ethyl Alcohol, Alcoholic and Alcohol-Containing Products".

Order of the Federal Commission for Securities Market No. 03-1405/r of July 9, 2003 on the Endorsement of the Qualification Minimum for the Basic Qualification Examination for the Managers, Controllers and Specialists of Organisations Engaged in Professional Activities at Securities Market, for the Managers and Specialists of Organisations Engaged in the Management of Investment Funds, Shared Investment Funds and Non-State Pension Funds, As Well As for the Managers and Specialists of Organisations Engaged in Activities of Specialised Depositaries of Investment Funds, Shared Investment Funds and Non-State Pension Funds

Lists the minimum lists of questions, legislative and normative documents to be mastered on obligatory basis for qualified execution of the functions of the listed managers, controllers or specialists.

Decree of the President of the Russian Federation No. 966 of August 15, 2003 on the Measures to Implement the Resolution of the UN Security Council 1478 of May 6, 2003

Extends for one more year the prohibition to sell to Liberia products of military destination, civil and service arms, as well as any rendering of technical aid or services in training pertaining to the transfer, production, servicing or operation of the mentioned products.
Also prohibits from July 7, 2003 through May 7, 2004 the import to the Russian Federation of all kinds of round timber from Liberia.

Decision of the Chief State Sanitary Physician of the Russian Federation No. 146 of August 15, 2003 on the Sanitary and Epidemiological Expert Evaluation of Biologically Active Additives

From September 1, 2003 the Department of the State Sanitary and Epidemiological Enforcement of the Ministry of Public Health of the Russian Federation shall carry out sanitary and epidemiological expert evaluation of biologically active additives to foodstuffs and issue statements of their compliance with the state sanitary and epidemiological rules and normative.
The statement is a document granting the right for production, application (use), sale and import of biologically active additives to foodstuffs on the territory of the Russian Federation.
The earlier issued registration certificates preserve their force until expiry.
Registered in the Ministry of Justice of the Russian Federation on August 18, 2003. Reg. No. 4988.

Order of the Ministry of Taxation of the Russian Federation No. BG-3-09/426 of July 28, 2003 on the Registration of Foreign Organisations in the Tax Bodies

From January 1, 2005 invalidates the taxpayer identification number (INN) and the foreign organisation code (KIO) assigned to these organisations before October 1, 2003, as well as the documents confirming the registration/registration of foreign organisations in the tax bodies issued before October 1, 2003. Specifies the procedure of replacement for foreign organisations from October 1, 2003 through December 31, 2004 of the earlier issued documents confirming registration in the tax bodies.
From October 1, 2003, registration/registration of foreign organisations is carried out using the guide "Codes of Foreign Organisations".
According to the Order, foreign organisations created on the territory of the Russian Federation will get the notification from the tax body of the replacement of the earlier issued documents.
Registered in the Ministry of Justice of the Russian Federation on August 14, 2003. Reg. No. 4975.

Letter of the Ministry of Taxation of the Russian Federation No. SA-6-04/816@ of July 23, 2003 on the Taxation of the Unemployed

Payments from the federal budget to support the incomes of the unemployed participating in public works shall be regarded as the ones not to be included in the taxable base for the purposes of calculation of the income tax from natural persons.

Decision of the Government of the Russian Federation No. 500 of August 15, 2003 on the Federal Information Fund of Technical Regulations and Standards and the Uniform Information System of Technical Regulation

Specifies the procedure of creation and keeping of the Federal Information Fund of Technical Regulations and Standards, rules of using them, as well as the procedure of creation and functioning of the uniform information system of technical regulation intended to provide information on technical regulations, standards and other documents on technical regulation.
The uniform information system of technical regulation is a public use information system and includes document blocks in the form of official publications and in the electronic digital form, retrieval system and appropriate information technologies.
The Fund is created and maintained by the State Standards Committee of the Russian Federation obliged to provide information on the fund documents to users, as well as provide free access to fund documents. Information on the documents (availability, effective periods, amendments, revisions, replacement and revocation), developers and bodies having endorsed them, as well as the documents and their copies on paper medium and in the electronic digital form are provided at cost. The amount of payment is specified by the State Standards Committee of the Russian Federation. Federal bodies of legislative and executive power, as well as judicial bodies, shall get the mentioned products and services free of charge.

Order of the Ministry of Labour of the Russian Federation No. 175 of July 15, 2003 on the Organisation of Work to Prepare and Issue the Statements of Expediency of Attracting and Use of Foreign Workforce by the Territorial Bodies of the Ministry of Labour of Russia in Charge of Population Employment Issues

The statement of the expediency of attracting and use of foreign workforce on the territory of the subject of the Russian Federation is issued to the employer, orderer of works (services) by the territorial body of the Ministry of Labour of the Russian Federation in charge of population employment issues taking into account suggestions of the population employment centre or independently on the basis of analysis of available information on the labour market situation.
In this case the principle of priority right of the Russian citizens is applied to occupy the vacant and newly created jobs.
The Order provides the form of the application for the statement of expediency of attraction and use of foreign workforce.
Registered in the Ministry of Justice of the Russian Federation on August 15, 2003. Reg. No. 4985.

Order of the Committee for Financial Monitoring of the Russian Federation No. 94 of July 30, 2003 on the Officials of the Committee of the Russian Federation for Financial Monitoring Authorised to Draw up the Protocols of Administrative Violations

Lists the officials of the Committee for Financial Monitoring of Russia entitled to draw up the protocols of administrative violations in compliance with Parts 2 and 4 of Article 28.3 of the Code of Administrative Violations of the Russian Federation.
Registered in the Ministry of Justice of the Russian Federation on August 15, 2003. Reg. No. 4983.

Decision of the Federal Commission for Securities Market No. 03-31/ps of July 2, 2003 on the Amendments to the Regulation on the Requirements to the Organisers of Trade at Securities Market

Specifies that the trade organiser must register in the Federal Commission for Securities Market the list of securities permitted for tenders, as well as the changes to it, including those pertaining to excluded securities. Lists the requirements to the mentioned list.
The registration also applies to the rules of concluding and verification of the deals, procedure of execution of the deals, as well as the procedure of introduction of amendments to information to be disclosed to interested parties. The listed documents must be submitted for registration to the Federal Commission for Securities Market by trade organisers within 30 days from the day of entry into force of the Decision.
The new wording is provided for the procedure of suspension by the trade organiser of tenders for a security of a particular issue included in quotation list A.
Registered in the Ministry of Justice of the Russian Federation on August 15, 2003. Reg. No. 4982.

Order of the State Customs Committee of the Russian Federation No. 806 of July 21, 2003 on the Endorsement of the Instruction on the Confirmation by the Customs Bodies of the Actual Exportation (Importation) of Commodities from the Customs Territory of the Russian Federation (to the Customs Territory of the Russian Federation)

The Instruction is used to ensure confirmation of the actual exportation and importation of commodities and transport vehicles, as well as the transit shipment of commodities, to implement the right of the Russian persons for the 0% VAT and excise duty tax rate.
Defines the procedure of applying to the customs bodies for the confirmation of the actual exportation (importation) of commodities, the terms and procedure of getting written confirmation of the date of actual crossing of the customs border of the Russian Federation by the commodities, requirements to the presented documents.
If it is impossible to present the documents necessary for the confirmation of the actual exportation (importation) of commodities, it is permitted to make and send to the applicant, on the basis of a motivated substantiation of the applicant and to the written decision of the chief of the customs office or the person replacing him, copies of the customs declarations, as well as transportation, commodity-accompanying and/or other documents with the marks of the customs bodies confirming the export of commodities. In this case, the time of sending the reply to the applicant is increased by the time necessary to make copies of the documents, but not more than for 45 days from the date of the appeal.
The Order is entered into force 30 days after its official publication.
Registered in the Ministry of Justice of the Russian Federation on August 14, 2003. Reg. No. 4979.

Order of the Directorate of Special Programs of the President of the Russian Federation No. 21 of July 30, 2003 on the Endorsement of the List of Officials Authorised to Draw up the Protocols of Administrative Violations Revealed during State Sanitary and Epidemiological Enforcement Measures in the Directorate of Special Programs of the President of the Russian Federation and the Service of Special Objects of the President of the Russian Federation

Lists the officials authorised to draw up the protocols of administrative violations revealed during state sanitary and epidemiological enforcement measures in the Directorate of Special Programs of the President of the Russian Federation and the Service of Special Objects of the President of the Russian Federation.
Registered in the Ministry of Justice of the Russian Federation on August 14, 2003. Reg. No. 4977.

Decision of the Government of the Russian Federation No. 507 of August 19, 2003 on the Endorsement of the Rate of Export Customs Duty for Natural Gas in Gaseous Condition Exported from the Territory of the Russian Federation outside the Member-States of the Customs Union Agreements

From January 1, 2004, the rate of export customs duty for natural gas in gaseous condition (code according the Foreign Trade Commodity Nomenclature 2711 21 000 0) is fixed in the amount of 30% of the customs cost. Earlier, the rate amounted to 5% of the customs cost, however, not less than EUR 2.5.

Order of the Ministry of Natural Resources of the Russian Federation No. 663 of July 30, 2003 on the Amendments to the Federal Classification Catalogue of Waste Endorsed by the Order of the Ministry of Natural Resources of Russia No. 786 of December 2, 2002 on the Endorsement of the Federal Classification Catalogue of Waste

The federal classification catalogue includes now the waste of processing of cereals, waste of plant growing industry, greenhouse gardening, beer brewing, alcohol and liqueur production and some other.
Registered in the Ministry of Justice of the Russian Federation on August 14, 2003. Reg. No. 4981.

Letter of the Central Bank of Russia No. 2833/K of August 13, 2003

At present, structural divisions of the Bank of Russia are working out draft normative acts on the cash procedures carried out by credit organisations using cash registers, on the procedure of sending by the Bank of Russia to the federal body of executive power in charge of the keeping of the State Register of Cash Registers of information on the models of cash registers permitted by the Bank of Russia for use by credit organisations, as well as of the software products used in them and on the procedure of use of cash registers by credit organisations and software used in them.
Before the adoption of the mentioned normative acts, credit organisations should be guided by the directions and explanations of the Bank of Russia on this issue being in effect now when they carry out operations using cash registers.

Order of the State Customs Committee of the Russian Federation No. 849 of August 4, 2003 on the Endorsement of the Form of the Act of Verification of Advance Payments

Endorses the form of the document fixing the results of the joint verification by the payer and the customs body of the spending of the payer monetary resources received as advance customs payments not identified as particular types and amounts of payments for particular commodities.
The mentioned act is drawn up if the payer does not agree to the results of the report of the customs body of the spending of the monetary resources transferred as advance payments.
The act is drawn up in duplicate, signed by the customs body and the payer. One copy of the act after signing is to be handed in to the payer.
The Order is entered into force from January 1, 2004.
Registered in the Ministry of Justice of the Russian Federation on August 19, 2003. Reg. No. 4992.

Direction of the Central Bank of Russia No. 1322-U of August 18, 2003 on the Amendments to the Instruction of the Bank of Russia No. 62a of June 30, 1997 on the Procedure of Building and Use of the Reserve for Possible Losses in Loans

The changes are introduced in the criteria for qualifying the loans as desperate, i.e. representing the actual losses of the bank (4th risk group).
Omits the provision stating that from September 1, 1999 the banks must qualify the debts in loans of the borrowers as the 4th risk group and create the reserve for possible losses together with the granting of the loan while observing the following signs:
- the borrower did not present to the bank the documents confirming a fair credit history for the most recent three months before the date of applying for the loan if less than 1 year passed from the date of registration of the borrower legal entity;
- the debt in loan is not secured or insufficiently secured;
- the debt in loan is greater than 50% of the borrower assets in circulation (for legal entities).
The Direction is entered into force 10 days after the day of its official publication in the Herald of the Bank of Russia.

Letter of the Ministry of Finance of the Russian Federation No. 03-01-01/08-238 of August 13, 2003 on the Changes in Accounting Reports

Beginning with the 9 months of 2003, before presenting the summary accounting reports to the Ministry of Finance of the Russian Federation, administrators and recipients of the resources of the federal budget have to coordinate Form 2 "Report of Execution of the Incomes and Expenses Estimate for the Budget Resources" (Code 0503004) also with the incomes department of the territorial body of the federal treasury where it pertains to the return of the loans with the note of the authorised executor of the treasury body deciphering the signature.

Letter of the Department of Taxation Policy of the Ministry of Finance of the Russian Federation No. 04-05-12/60 of June 3, 2003

When an organisation switches over to the uniform imputed income tax for retail trade, it is necessary to pay the taxes according to the common taxation regime for commodities sold on cashless basis (including the use of bank cards) while providing for a separate recording of the property used to carry out these activities. The mentioned property in this case includes both the commodities and the property used to sell them (for example, shop rooms, scales, cash registers, transport vehicles etc.).
If there is no opportunity to provide for a separate accoutring, the cost of the property being the object of taxation for the property tax should be determined in proportion to the amount of receipts from the sale of the products (works, services) received in other activities in the total amount of receipts from the sale of products (works, services) of the organisation.
In this case, the portion of receipts obtained from the sale of commodities on the cashless basis for the appropriate period is determined as the difference between the total amount of receipts obtained from the sale of commodities and the amount of cash received in the seller cash department for this period.

Decision of the Government of the Russian Federation No. 516 of August 22, 2003 on the Maximum Levels of Tariff Rates for Electric and Thermal Power

The maximum levels of tariff rates for electric and thermal power supplied by power-supply organisations to consumers, including the maximum levels of tariff rates for population, for the subjects of the Russian Federation are fixed by the Federal Power Supply Commission of the Russian Federation until the first reading of the draft federal law on the federal budget for the subsequent fiscal year.
The Federal Power Supply Commission of the Russian Federation is ordered to fix the maximum levels of tariff rates for the year 2004 before August 27, 2003.

Decision of the Government of the Russian Federation No. 513 of August 21, 2003 on the Endorsement of the Regulation on the Creation and Activities of the Expert Commissions for Technical Regulation

The main task of the expert commissions created by the State Standards Committee of the Russian Federation is the expert evaluation of the draft technical regulations and preparation of appropriate statements.
Expert commission includes specialists of the federal bodies of executive power, scientific organisations, self-regulated organisations, public associations of entrepreneurs and consumers taking into account proposals of these bodies, organisations and associations. The sessions of the expert commission are considered to be valid if more than half of its members take part. However, if a technical regulation containing state secrets is examined, the experts must have appropriate access to such information.

Decision of the Government of the Russian Federation No. 512 of August 20, 2003 on the List of the Types of Incomes Taken into Account When Calculating the Average Per Capita Incomes of the Family and the Incomes of the Single Citizen for the Purposes of Rendering State Social Aid to Them

Calculation of the average per capita incomes of the family and incomes of the single citizen for the purposes of rendering state social aid to them take into account all kinds of incomes obtained by them in the monetary form and in kind. The incomes do not include state social aid in the form of monetary payments and in kind, lumpsum insurance payments made in reimbursement of the damage incurred on the life and health, his property, as well as the monthly amounts pertaining to additional expenses for medical, social and professional rehabilitation.
Amounts of paid alimony are also excluded from the incomes.

Order of the Government of the Russian Federation No. 1165-r of August 15, 2003

Endorses the forecast plan (program) of privatisation of the federal property for the year 2004 and the main directions of privatisation of the federal property until 2006.
In 2004-2006, the privatisation will include federal property not used to ensure the functions and tasks of the state.
In 2004, it is suggested to put out for tenders all federal packets of stocks with amount not greater than 25% of the registered capital of the appropriate joint-stock company, except for the packets of stocks of the joint-stock companies of the power supply industry (before termination of the reorganisation of the Russian joint-stock company Joint Power-Supply Systems of Russia), gas-supply industry, as well as the joint-stock companies of strategic destination.
In 2005, the Russian Federation is expected to terminate its participation in the joint-stock companies of the gas-supply industry, power-supply construction complex, fishing, construction complex, cinematography, foreign-trade organisations, as well as the joint-stock companies of mechanical engineering (except for the strategic joint-stock companies).
In 2005, it is expected to put out for sale all federal packets of stocks with amount not greater than 50% of the registered capital of the appropriate joint-stock company, except for the packets of stocks of joint-stock companies of strategic destination.
In 2006, the Russian Federation will terminate its participation in the joint-stock companies of civil aviation, public health, chemical, petrochemical and printing industries, geology, fishing, poultry breeding, plant growing, animal breeding, forestry complex, medical industry, as well as terminate conversion into joint-stock companies of the federal state unitary enterprises of the nuclear industry.

Order of the Government of the Russian Federation No. 1163-r of August 15, 2003

Endorses the program of socio-economic development of the Russian Federation for the medium-term perspective (years 2003-2005).
The reform of the tax system in the medium-term period will include:
- improvement of administration of individual taxes (VAT and the uniform social tax first and foremost), reduction of the tax administration burden (including the tax record keeping);
- improvement of the system of property taxes;
- revision of the list of the regional and local taxes and fees, including the abolishment of the tied fees for police maintenance, fees from dog owners, fees for vehicle parking;
- reduction from 2005 of the tax burden for the labour remuneration fund at the expense of the reduction of the efficient rate of the uniform social tax (under the condition of maintaining the financial stability of the pension system).
One of the priority directions is also the reform of the banking system. To implement this direction it is planned to:
- enhance from the year 2005 the requirements of the Bank of Russia to the capital sufficiency figure of credit organisations;
- simplify the procedure of reorganisation of credit organisations in the form of a merger, incorporation and transformation;
- specify the requirements and terms of crediting of interconnected parties;
- regulate legislatively syndicated credits to clearly distribute the liability, tax consequences and risks for syndicate participants;
- develop the system of disclosing of information on fair execution by the borrowers of obligations to banks (credit bureaus);
- create the system of registration of bails for any type of property and property rights;
- introduce amendments to the Civil Code of the Russian Federation envisaging opportunities of early exaction of fixed-term deposits only in cases directly specified in the contract.

Decision of the Federal Commission for Securities Market No. 03-33/ps of July 16, 2003 on the Endorsement of the Regulation on the Procedure and Time Limits of Storage of the Documents of Joint-Stock Companies

Specifies the procedure and time limits for storage of documents of joint-stock companies, including the procedure of destruction of the expired documents. The mentioned documents include decisions on the issue (additional issue) of securities, amendments to these decisions, emission prospectuses, registered reports of the results of issue (additional issue) of securities, lists of the company documents handed over for permanent storage to the company archive, acts of document selection for destruction.
An expert commission is created in the company to organise and carry out expert evaluation of the validity of the documents formed in the course of the company operation, select them for further storage or destruction.
Registered in the Ministry of Justice of the Russian Federation on August 21, 2003. Reg. No. 4994.

Letter of the Department of the Currency Control of the Ministry of Finance of the Russian Federation No. 15-01-27/834 of August 6, 2003

Explains the issue of handing out by the authorised banks opening accounts to residents of certificates of the absence of overdue debts in receipts from export operations and obligatory sale of its part, as well as of the violations of the currency legislation of the Russian Federation.
Reports that the certificate for the Ministry of Finance of the Russian Federation must indicate only information on the registered by the authorised bank violations of the currency legislation of the Russian Federation, including all open deal certificates drawn up by the resident in the authorised bank.

Letter of the Department of the Methodology of Accounting Work of the Ministry of Finance of the Russian Federation No. 16-00-12/29 of August 5, 2003

Printing activities, activities in the making of the strict-reporting forms (without protection against forgery) and activities in selling these blank forms is not subject to licensing.
Since strict-reporting forms are printing industry items, the typing of the series numbers on the strict-reporting documents must be made using printing industry methods. Indication on the printed items of information of the printing house making the blank forms is an obligatory requisite identifying the maker of the blank forms.

Letter of the Ministry of Finance of the Russian Federation No. 16-00-14/247 of August 5, 2003

Since the amount of the registered capital of the state and municipal unitary enterprises is specified in the charter, reception of fixed assets on the economic management or operative control basis in excess of the registered capital is recorded in accounting work on the debit of Account 08 "Investments in the Assets out of Circulation" in correspondence with the credit of Account 75 "Payments to Founders", separate subaccount, debit of Account 75 "Payments to Founders" in correspondence with the credit of Account 84 "Undistributed Profits (Uncovered Losses)", debit of Account 01 "Fixed Assets" in correspondence with the credit of Account 08 "Investments in Assets out of Circulation".

Letter of the Ministry of Finance of the Russian Federation No. 16-00-14/243i of July 31, 2003

Explains that amortisation is not accrued for the objects of fixed assets of non-commercial organisations purchased at the expense of resources obtained from entrepreneurial activities.
The mentioned fixed assets are recorded in accounting work when the object is entered in the records on the debit of Account 01 "Fixed Assets" in correspondence with the credit of Account 08 "Investments in Assets out of Circulation" and the debit of Account 86 "Tied Financing" in correspondence with the credit of Account 83 "Additional Capital".

Decision of the Government of the Russian Federation No. 514 of August 21, 2003 on the Governmental Commission in Charge of the Development of the Normative Acts in the Sphere of Reformation and Regulation of Land Relations

The governmental commission is the coordinating body providing for the interaction of the federal bodies of executive power and organisations in the development of the normative legal acts and introduction of organisational and economic mechanisms in the sphere of reformation and regulation of land relations.

Direction of the Central Bank of Russia No. 1309-U of July 17, 2003 on the Procedure of Paying out of the Coupon Income (Redemption of the Nominal Cost, Part of the Nominal Cost) for the Federal State Securities Not Redeemed by the Bank of Russia

The paying out of the monetary resources shall be carried out on the 15th of each month or on the first working day after the mentioned day if the 15th falls on the weekend or holiday. To get the payment, investors must present to the territorial institution of the Bank of Russia application drawn up to the attached form, as well as a proxy for the dealer permitting to get the monetary resources.
For unredeemed bonds arrested by the tipstaff the monetary resources are transferred on the deposit account of the appropriate division of the tipstaff service after getting information of the mentioned account or on the correspondent account of the credit organisation opened in the Bank of Russia.
The Direction is entered into force 10 days after the day of its official publication in the Herald of the Bank of Russia.

Letter of the Central Bank of Russian Federation No. 04-15-1/2887 of August 5, 2003 on the Operative Direction of the Bank of Russia No. 68-T of May 5, 2003

In pursuance of the Operative Direction, the Bank of Russia recommends to the credit organisations to envisage in internal documents the need to approve by the Board of Directors (Supervisory Board) or the general meeting of stock-holders (participants) the deals with related parties if the mentioned deals are in excess of the limit of crediting of related parties fixed by the credit organisation, as well as depending on the crediting terms and other factors jeopardising the financial stability of the credit organisation.
In this case the term "approval" is used in the context other than that of the federal laws on joint-stock companies and limited-liability companies and does not restrict the authority of their executive bodies. It is desirable that the Board of Directors (Supervising Board) adopt a preliminary decision on the expediency of the deal with an insider of the credit organisation taking into account the higher risk of the mentioned operation for the credit organisation.

Decision of the Government of the Russian Federation No. 522 of August 25, 2003 on the Federal Standards of Payment for the Housing and Communal Services for the Year 2004

In 2004, the federal standard of the maximum cost of the rendered housing and communal services for 1 square meter of the total dwelling space per month is fixed to amount to Rbl 26.4 on the average for the Russian Federation.
The federal standard of the cost of capital repair works for the housing fund for 1 square meter of the total dwelling space per month is introduced for the first time in 2004. Its amount is Rbl 2.6 on the average for the Russian Federation.
The mentioned standards are used to determined the amount of the financial aid rendered to the budgets of the subjects of the Russian Federation and closed administrative territorial formations at the expense of the federal budget, expenses for the maintenance, repair works for the housing and the rendered communal services.

Order of the State Customs Committee of the Russian Federation No. 868 of August 6, 2003 on the Amendments to the Order of the State Customs Committee of Russia No. 870 of December 24, 1998

The changes are introduced in the Order specifying the procedure of the customs registration of commodities moved across the customs border of the Russian Federation in compliance with the Agreement on the general terms and mechanism of support of development of production cooperation of enterprises and industries of the member-states of the Commonwealth of Independent States.
The changes are introduced because of the handing over of the functions of control over the moving of commodities in the framework of production cooperation of enterprises and industries of the CIS member-states from the Central Customs Department to the Directorate of Organisation of the Customs Control of the State Customs Committee of the Russian Federation.
Registered in the Ministry of Justice of the Russian Federation on August 27, 2003. Reg. No. 5008.

Order of the State Customs Committee of the Russian Federation No. 886 of August 14, 2003 on the Endorsement of the Form of the Demand to Transfer Customs Payments

Endorses the written form of the notification of the customs body of the unpaid in due time amount of customs payments, as well as of the duty to pay within the time limits specified in this demand the unpaid amounts of the customs payments, penalties and/or interest.
The demand contains information on the amount of the customs payment due for transfer, amount of penalties and/or interest accrued as of the day of putting up of the demand, time of transfer, time of execution of the demand, as well as on the measures of forced collection of the customs payments to be applied in cases of failure to fulfil the demand by the payer and the reasons of the putting up of the demand.
The Order is entered into force from January 1, 2004.
Registered in the Ministry of Justice of the Russian Federation on August 26, 2003. Reg. No. 4997.

Direction of the Central Bank of Russia No. 1323-U of August 19, 2003 on the Adjustment of Individual Normative and Other Acts of the Bank of Russia

Pursuant to the abolishment of the methodology recommendations on the drawing up of the expenses estimate of credit organisations with revoked licenses for bank operations endorsed by the Letter of the Bank of Russia No. 41-T of December 17, 1997, omits the provision stating that the mentioned recommendations should be used by credit organisations when drawing up the expenses estimate.
The Direction is entered into force 10 days after publication in the Herald of the Bank of Russia.

Letter of the Central Bank of Russia No. 124-T of August 21, 2003 on the Risk Normative for the Own Bill Liabilities (N13)

Refines the nature of use of information on the fulfilment by credit organisations of the risk normative for the own bill liabilities (N13). Information on N13 observation by credit organisations is used by the territorial institutions of the Bank of Russia in the framework of the contensive analysis of the financial standing of credit organisations, as well as to assess their liquidity status.
Territorial institutions of the Bank of Russia, when supervising the activities of credit organisations, do not apply sanctions for the failure to observe the fixed values of this normative and do not take into account the failure to observe the given normatives in the classification of the financial stability of the credit organisation.

Letter of the Central Bank of Russia No. 121-T of August 20, 2003 on the Actions in Cases of Revealed Facts of Failure to Observe Normatives N8, N9, N11, N11.1 and N14

Explains the procedure of using information on the failure to observe normatives N8, N9, N11, N11.1 and N14 by credit organisations.
Territorial institutions of the Bank of Russia, when supervising the activities of credit organisations, do not apply sanctions for the failure to observe the fixed values of the mentioned normatives and do not take into account the failure to observe the given normatives in the classification of the financial stability of the credit organisation.

Order of the Ministry of Transport of the Russian Federation No. 176 of August 14, 2003 on the Amendments to the Order of the Ministry of Transport of the Russian Federation No. 110 of October 2, 2000

Specifies that the rate of the fee is fixed for 100 km of the distance calculated proceeding from the great circle of the flight of the air vessel (per 100 aircraft-kilometres) different for the internal and international flights and from the maximum take-off weight of the air vessels. The basic cost of the fee rate does not include the costs of aeronautical services in the vicinity of the airport.
Registered in the Ministry of Justice of the Russian Federation on August 27, 2003. Reg. No. 5013.

Order of the Committee of the Russian Federation for Financial Monitoring No. 103 of August 11, 2003 on the Amendments to the Regulation on the Form of the Written Requests and the List of Officials Entitled to Send Requests to Credit Organisations Endorsed by the Order of the Committee for Financial Monitoring of Russia No. 102 of December 24, 2002

Interregional departments of the Committee for Financial Monitoring of Russia are empowered with authority to send written requests to credit organisations to provide information, including documents or their copies, pertaining to operations subject to obligatory control under the Law on the countermeasures against legalisation (laundering) of incomes obtained in a criminal way.
Such written requests contain a reference to the appropriate Order of the Committee for Financial Monitoring of Russia, with the content of the Order not being disclosed.
Registered in the Ministry of Justice of the Russian Federation on August 27, 2003. Reg. No. 5012.

Order of the Ministry of Finance of the Russian Federation No. 79n of August 21, 2003 on the Endorsement of the Typical Form of the Agreement of the Mutual Certification of Signatures

According to the agreement, the Pension Fund of Russia orders the organisation to accept the application of the insured to choose the investment portfolio (management company), identify the insured, certify the validity of his signature on the application and send the application to the Pension Fund of Russia.
Registered in the Ministry of Justice of the Russian Federation on August 27, 2003. Reg. No. 5011.

Decision of the Social Insurance Fund of the Russian Federation No. 87 of July 29, 2003 on the Endorsement of the Methodology Directions on the Cameral Checks of Insurers in Obligatory Social Insurance and Obligatory Social Insurance against Industrial Accidents and Occupational Diseases

Specifies uniform requirements to the cameral checks of insurers in obligatory social insurance and obligatory social insurance against industrial accidents and occupational diseases carried out by the executive bodies of the Social Insurance Fund of Russia, drawing up and implementation of the results of these checks.
The cameral check is carried out by the officials assigned by the head of the executive body of the Social Insurance Fund of Russia without any special decision. The check of the reports is carried out within two months from the day of submission of the reports by the insurer to the Social Insurance Fund of Russia, and the cameral check when resources are allocated to the insurers, within 10 days from the day of submission of all necessary documents by the insurer.
Registered in the Ministry of Justice of the Russian Federation on August 27, 2003. Reg. No. 5009.

Direction of the Central Bank of Russia No. 1319-U of August 13, 2003 on the Amendments to the Instruction of the Bank of Russia No. 96-I of December 28, 2000 on the Special, Type S Accounts of Non-Residents

Makes more stringent the requirements to credit organisations opening type S accounts of non-residents. According to the amendments, the opening of the mentioned accounts for non-residents and carrying out of operations on them is permitted only to the banks possessing the general license for the bank operations and having concluded the contract for the dealer functions at the bonds market with the Bank of Russia.
Type S account now does not include sections "Securities Blocked for Subsequent Transfer to the Main Section of the Custody Account" and the "State Securities Blocked for Subsequent Transfer of the Receipts from Their Sale (Redemption) to the Special, Type S Account of the Non-Resident".
Omits the provision stating that in case of violation by the non-resident of the normative documents regulating operations at the market of short-term state bonds and the bonds of the federal loans, his operations may be suspended for up to 3 months.
The time of keeping of the resources of the non-resident on the transit account is reduced from 30 to 2 calendar days from the day of transfer of the resources on this account.
Provides estimates of the permitted for transfer amount of the monetary resources obtained in the form of dividends from stocks, interest from bonds, income from couponless bonds.
The Direction is entered into force 10 days after the day of its official publication in the Herald of the Bank of Russia.
Registered in the Ministry of Justice of the Russian Federation on August 26, 2003. Reg. No. 5004.

Letter of the Ministry of Taxation of the Russian Federation No. 05-2-06/186-AA884 of August 1, 2003 on the Offsetting of the Uniform Social Tax

Explains that the special procedure of offsetting of the amounts of the uniform social tax paid in 2002 by the payers of the uniform imputed income tax specified in Article 5 of the Federal Law No. 104-FZ of July 24, 2002 was applied only in 2002. Beginning with 2003, there is a common procedure of offsetting - return specified in Articles 78-79 of the Tax Code of the Russian Federation. The offset procedure - return of the uniform social tax by the payers transferred to the uniform imputed income tax may be different.

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