Monitoring of the Federal Legislation dated 17.05.2005

Ruling of the Constitutional Court of the Russian Federation No. 71-O of March 10, 2005 Pursuant to the Request of the Samara Province Court on the Constitutionality of Provisions of Item 5 of Article 8 of the Federal Law on the General Principles of Organisation of Legislative (Representative) and Executive Bodies of State Power of the Subjects of the Russian Federation

The Federal Law on the general principles of organisation of legislative (representative) and executive bodies of state power of the subjects of the Russian Federation is a general law specifying the procedure of entry into force of the laws and other normative acts of the subjects of the Russian Federation. The regulation contained in it stating that normative acts pertaining to protection of rights and freedoms of man and citizen may enter into force no sooner than ten days after their official publication (Item 5 of Article 8) does not prevent the subject of the Russian Federation from defining independently the procedure of entry into force of their own laws.

Determination of the fact of the presence (or absence) in the law or another normative act adopted by the subject of the Russian Federation of provisions pertaining to issues of protection of rights and freedoms of man and citizen forms the sphere of reference of appropriate courts.

The Ruling states that Item 5 of Article 8 of the Federal Law on the general principles of organisation of legislative (representative) and executive bodies of state power of the subjects of the Russian Federation must be applied in accordance with its constitutional and legal meaning specified by the Constitutional Court of the Russian Federation in the Ruling.

The Ruling must be published in Rossiyskaya Gazeta and the Herald of the Constitutional Court of the Russian Federation.

Decision of the Government of the Russian Federation No. 299 of May 13, 2005 on the Amendments to the Norms of Expenses of Organisations to Pay out Daily Allowance Per Day in a Business Trip Abroad Permitting to Qualify Such Expenses As Other Expenses Pertaining to Production and Sale in the Determination of the Taxable Base for the Profit Tax from Organisations Envisaged in the Decision of the Government of the Russian Federation No. 93 of February 8, 2002

Endorses a new wording of the norms of expenses of organisations to pay out daily allowance per day of business trip abroad permitting to qualify such expenses as other expenses pertaining to production and sale in the determination of the taxable base for the profit tax from organisations envisaged in the Decision of the Government of the Russian Federation No. 93 of February 8, 2002.

The Decision is entered into force from January 1, 2006.

Decision of the Social Insurance Fund of the Russian Federation No. 46 of April 27, 2005 on the Endorsement of the Average Values of the Main Figures to Calculate Discounts and Mark-Ups to Insurance Tariff Rates for Obligatory Social Insurance Against Industrial Accidents and Occupational Diseases in 2005

Endorses average values of the main figures by the types of economic activities coordinated with the Ministry of Public Health and Social Development of the Russian Federation to calculate discounts and mark-ups to insurance tariff rates for obligatory social insurance against industrial accidents and occupational diseases in 2005.

Letter of the Ministry of Finance of the Russian Federation No. 07-05-06/32 of February 1, 2005 on the Procedure of Determination of Expenses of the Organisation in the Determination of the Taxable Base for the Profit Tax

For profit taxation purposes, expenses in the form of the daily allowance to the employee on a business trip are recognised in roubles at the rate endorsed by the Central Bank of the Russian Federation as of the date of endorsement of the advance payments report within the limits of the norms endorsed by the Government of the Russian Federation. The rate of exchange of the foreign currency in the exchange office is not taken into account for profit taxation purposes.

Letter of the Ministry of Finance of the Russian Federation No. 07-05-06/28 of January 28, 2005 on the Determination of the Taxable Base for the Profit Tax

Explains that the debts of the organisation undergoing bankruptcy proceedings included in the creditor claims register may not be recognised as desperate for profit taxation purposes because of the expiry of the period of limitation and are not registered in expenses when building the taxable base for the profit tax before the end of the bankruptcy proceedings.