Monitoring of the Federal Legislation dated 11.06.2004

Order of the Ministry of Taxation of the Russian Federation No. SAE-3-22/332@ of May 24, 2004 on the Amendments to Appendix 2 to the Order of the Ministry of Taxation of Russia No. BG-3-22/135 of March 26, 2003 on the Amendments to Appendix 1 "Ledger of Incomes and Expenses of Organisations and Independent Entrepreneurs Using the Simplified System of Taxation" and to Appendix 2 "Procedure of Recording of Economic Operations in the Ledger of Incomes and Expenses of Organisations and Independent Entrepreneurs Using the Simplified System of Taxation" to the Order of the Ministry of Taxation of Russia No. BG-3-22/606 of October 28, 2002

The Order of the Ministry of Taxation of Russia is being brought in compliance with the Decision of the Higher Arbitration Court of the Russian Federation on the case No. 14770/03 of January 22, 2004 stating that additional duty imposed on the entrepreneurs to record in the ledger of incomes and expenses the figures of economic activities other than those affecting the calculation of the taxable base and the amount of tax is not based on the norms of the Tax Code of the Russian Federation.

Column 6 used to record all expenses made as a result of entrepreneurial activities must be filled by organisations only. Obligatory for entrepreneurs is the filling of Column 7 showing expenses under Article 346.16 of the Tax Code of the Russian Federation.

Registered in the Ministry of Justice of the Russian Federation on June 8, 2004. Reg. No. 5828.

Letter of the Ministry of Taxation of the Russian Federation No. 09-0-10/2190@ of May 27, 2004 on the Submission of the Application for the Switchover to the Simplified System of Taxation Simultaneously with the Documents for the State Registration

Permits to submit the application for the switchover to the simplified system of taxation simultaneously with the packet of documents submitted at the state registration of the legal entity and natural person as an independent entrepreneur.

In this case, the application for the switchover to the simplified system of taxation of the newly created organisation (newly registered independent entrepreneur) does not show the OGRN, INN/KPP of the organisation (OGRNIP, INN of the independent entrepreneur).