Monitoring of the Federal Legislation dated 30.06.2005

Decision of the Government of the Russian Federation No. 341 of May 31, 2005 on the Mutual Trips of the Citizens of the Russian Federation and the Citizens of the Republic of Kazakhstan

Citizens of the Russian Federation and Kazakhstan must have internal passports to cross the Russian-Kazakhstan state border (passport of the citizen of the Russian Federation, identification certificate of the citizens of the Republic of Kazakhstan) and certificates of birth for children (for the citizens of the Russian Federation under 14 years of age and the citizens of the Republic of Kazakhstan under 16 years of age).

The Decision is entered into force from the day of its official publication.

Decision of the Government of the Russian Federation No. 339 of May 27, 2005 on the Amendments to the Decision of the Government of the Russian Federation No. 714 of October 11, 2001

Provides a new wording for the regulation on the generation of the list of construction projects and objects for the state federal needs and their financing from the federal budget. The Regulation specifies that the procedure of building of the list of construction projects, construction and reconstruction objects, including the objects for technical modernisation, for the state federal needs, procedure of their financing at the expense of state capital investments (except for the budget credits) envisaged in the federal budget for the subsequent fiscal year, as well as the functions and authority of the state orderer and the construction party.

Order of the Federal Tax Service No. SAE-3-09/180@ of April 26, 2005 on the Endorsement of the Form "Decision on the State Registration"

Decision on the state registration of the legal entity, independent entrepreneur or the head of the peasant (farmers') enterprise drawn up according to Form Р80001 is taken by the body in charge of the registration on the basis of the documents submitted by the applicant.

Registered in the Ministry of Justice of the Russian Federation on May 25, 2005. Reg. No. 6653.

Order of the Federal Service for Financial Markets No. 05-13/pz-n of April 20, 2005 on the Endorsement of the Procedure of Notification by the Trade Organiser at the Securities Market of Inclusion (Exclusion) of Securities in the List (from the List) Permitted for Tenders

Defines the procedure of submission by the trade organiser to the Federal Service for Financial Markets of Russia of the notification of inclusion (exclusion) of securities in the list (from the list) permitted for tenders. The trade organiser must notify the Federal Service for Financial Markets of Russia of the event no later than the following day from the date of adoption of the appropriate decision by the authorised body of the trade organiser at the securities market.

Registered in the Ministry of Justice of the Russian Federation on May 25, 2005. Reg. No. 6650.

Order of the Ministry of Agriculture of the Russian Federation No. 70 of April 28, 2005 on the Endorsement of the List of Objects of Fauna Qualified As Objects of Hunting That Are Included in Those of Special Value Economically

Lists 38 mammals and 28 birds being the objects of hunting that are included in the specially valuable economically. Protection and use of the mentioned objects of fauna are qualified as the sphere of reference of the bodies of state power of the subjects of the Russian Federation implemented at the expense of subventions from the federal budget.

Registered in the Ministry of Justice of the Russian Federation on May 25, 2005. Reg. No. 6646.

Order of the Ministry of Agriculture of the Russian Federation No. 81 of May 17, 2005 on the Endorsement of the List of the Specially Hazardous Animal Diseases and Those Subject to Quarantine Measures

Lists the specially hazardous animal diseases and those subject to quarantine measures, prevention and elimination of which are included in the main tasks of the veterinary service in the Russian Federation.

Registered in the Ministry of Justice of the Russian Federation on May 25, 2005. Reg. No. 6645.

Order of the Ministry of Economic Development of the Russian Federation No. 49 of March 2, 2005 on the Endorsement of the Prototype Labour Contract with the Head of the Federal State Unitary Enterprise

The prototype labour contract shall regulate relations between the body of executive power and the head of the federal state enterprise pertaining to execution by the latter of the duties of the general director (director) of the enterprise. The head is a sole executive body of the enterprise and shall solve independently all issues of the work of the enterprise except for the ones qualified as the sphere of reference of other bodies.

The Order lists the rights and duties of the head and the body of executive power in the framework of the labour contract. Separate parts of the contact include the provision on the labour remuneration, social guarantees and responsibility of the head.

Registered in the Ministry of Justice of the Russian Federation on May 25, 2005. Reg. No. 6644.

Order of the Federal Service for Financial Markets No. 05-17/pz-n of April 20, 2005 on the Endorsement of the Regulation on the Specialists of the Financial Market

Specifies new qualification requirements to the specialists of the financial market, as well as the procedure of their certification, reasons of revocation of qualification certificates, procedure of keeping of the register of certified persons and the procedure of disclosing of information from the register. Certification of the applicants shall be carried out by the Federal Service for Financial Markets of Russia in the form of qualification examinations and issue of the qualification certificate, as well as the checking of qualification compliance of the specialists of the financial market with specified requirements.

Inclusion in the register of the earlier excluded persons is vested in the Federal Service for Financial Markets of Russia to be permitted 3 years after the date of revocation of the licenses of organisations having worked at the financial market where these persons were employed if they send an appropriate application to the Federal Service for Financial Markets of Russia with attached copy of the qualification certificate or on the basis of the court ruling.

The earlier issued qualification certificates without a period of limitation preserve their force.

The holders of qualification certificates of the specialist of the securities market in corporate finances may exchange within one year from the date of entry into force of the Order the mentioned certificate for the qualification certificate of the specialist of the financial market in one of the specialities of the financial market.

The Order is entered into force 10 days after the date of its official publication except for the provisions where other time limits for the entry into force are specified. Qualification requirements to the specialists of the financial market being employees of credit organisations are entered into force one year after the date of entry into force of the Order.

Registered in the Ministry of Justice of the Russian Federation on May 25, 2005. Reg. No. 6641.

Letter of the Federal Antimonopoly Service and the Central Bank of Russia Nos. IA/7235 and 77-T of May 26, 2005 on the Recommendations on the Standards of Disclosing of Information When Granting Consumer Credits

Recommendations on the standards of disclosing of information are aimed at providing for equal terms of competition among the credit organisations and protection of consumer interests, as well as prevention of obtaining of non-competitive advantages by credit organisations in consumer crediting through dissemination of false, incorrect or misrepresented information on the terms of granting of consumer credits.

The main principle of standards of disclosing of information when granting consumer credits is to provide true and full information to potential borrowers before conclusion of the credit contract of the terms of granting, use and return of the consumer credit on a standardised form permitting the consumer to compare the terms of consumer credits of different banks and make a conscious choice. Opportunities of making a conscious choice is one of the prerequisites of the fair competition among the banks at the market of consumer crediting.

Letter of the Central Bank of Russia No. 76-T of May 24, 2005 on the Organisation of Operative Risk Control in Credit Organisations

Endorses recommendations on organisation of operative risk control in credit organisations applied in internal control measures in credit organisations. Operative risk is implied to be the risk of losses as a result of incompliance with the nature and scale of activities of the credit organisation and/or requirements of the actual legislation of internal procedures of bank operations and other transactions, their violation by the employees of the credit organisation and/or other persons, incommensurability (insufficiency) of the functional potential (characteristics) of information, technological and other systems used by the credit organisation and/or their failures (functioning disorders), as well as a result of external events. The Letter lists internal and external reasons of operative risk and their types.

Credit organisations are recommended to work out the main principles of operative risk control and define the control efficiency. Besides, credit organisations are recommended to convey the operative risk control information to participants (stock-holders), creditors, depositors and other clients, external auditors, rating agencies and other interested parties (including the annual report).

Federal Constitutional Law No. 4-FKZ of June 1, 2005 on the Amendment to Article 7 of the Federal Constitutional Law on the Government of the Russian Federation

The amendments introduce restrictions to the procedure of assigning of the Chairman of the Government of the Russian Federation: this position may be occupied by the citizen of the Russian Federation only.

Federal Law No. 54-FZ of June 1, 2005 on the Amendment to Article 31 of the Code of Criminal Procedures of the Russian Federation

The amendments exclude criminal cases envisaged in Part 3 of Article 327 of the Criminal Code of the Russian Federation from the jurisdiction of the regional court and include them in the jurisdiction of the justices of the peace. The mentioned norm introduced criminal responsibility for the use of the documents known to be faked.

Federal Law No. 53-FZ of June 1, 2005 on the State Language of the Russian Federation

The state language of the Russian Federation on the whole of its territory is the Russian language. When using the Russian language as the state language of the Russian Federation, it is not permitted to use the words and expressions failing to comply with the norms of the modern literary Russian language, except for the foreign words that do not have commonly used analogues in the Russian language. The procedure of endorsement of the norms of the modern Russian literary language, rules of spelling and punctuation is defined by the Government of the Russian Federation.

Persons that do not have command of the state language of the Russian Federation shall be entitled for the services of an interpreter to implement and protect their rights and legal interest on the territory of the Russian Federation.

The Federal Law is entered into force from the day of its official publication.

Federal Law No. 52-FZ of May 31, 2005 on the Ratification of the Additional Agreement between the Russian Federation and the Chinese People's Republic on the Russian-Chinese State Border on Its Eastern Part

Ratifies the Additional Agreement singed in Peking on October 14, 2004 defining the line of the Russian-Chinese state border on the two agreed portions of its eastern part from the 7th to 8th borderline points and from the 10th to 11th borderline points.

Decree of the President of the Russian Federation No. 609 of May 30, 2005 on the Endorsement of the Regulation on the Personal Information of the State Civil Servant of the Russian Federation and the Keeping of His Personal File

Defines the procedure of obtaining, processing, storage, handing over and any other use of the personal information of the state civil servant of the Russian Federation, as well as the keeping of his personal file. The personal information of the civil servant is implied to be information about the facts, events and circumstances of life of the civil servant permitting to identify his personality and contained in the personal file of the civil servant or that must be included in his personal file.

Mass media, if they apply for it, shall get information on the declared annual income of the state servant, list of objects of immovable property possessed by him on the proprietary basis or used by him, as well as the list of transport vehicles and the total declared cost of securities possessed on the proprietary basis.

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

Letter of the Central Bank of Russia No. 78-T of May 30, 2005 on the Revocation of the Operative Direction of the Bank of Russia No. 145-T of April 30, 1999 on the Issues Pertaining to the Regulation of the Bank of Russia No. 72-P of March 26, 1999

Pursuant to the adoption of the Regulation of the Bank of Russia No. 268-P of April 19, 2005 specifying the procedure and criteria of assessment of the financial standing of natural person founders (participants) of the credit organisation, revokes Operative Direction of the Bank of Russia No. 145-T of April 30, 1999.

Letter of the Ministry of Regional Development of the Russian Federation No. 2585-MP/70 of May 27, 2005 on the Indices of Change of the Cost Estimates for the II Quarter of 2005

Specifies indices of change of the estimated costs for the whole of construction and installation works and by items of expenses for the II quarter of 2005 by the subjects of the Russian Federation for the objects financed from the federal budget.

The indices for construction and installation works are defined taking into account overhead expenses and profit estimates. The overhead expenses are adopted with a reduction coefficient of 0.94 taking into account the reduced rate of the uniform social tax from January 1, 2005. The mentioned coefficient does not apply to the overhead expenses in the basic level of prices.

When applying the indices for the items of expenses, overhead expenses and the profit estimates are determined from the labour remuneration fund of construction workers and equipment operators in the current level of prices

Letter of the Ministry of Finance of the Russian Federation No. 03-03-02-02/70 of May 13, 2005 on the Invalidation of the Position of the Federal Tax Service of Russia Pertaining to Application of the Simplified System of Taxation

Taxpayer expenses applying the simplified system of taxation to purchase commodities for their further sale are recognised in the determination of the taxable base for the uniform tax in full amount after they are actually paid for regardless of the time of sale of the commodities. In this case, the value added tax is taken into account in full amount in expenses in the reported period of its payment.

As a substantiation of the writing off of commodities and material values when released for production, the Ministry of Finance of Russia cites Article 254 of the Tax Code, Item 5 of which states that the cost of the residues of commodities and material values handed over for production but unused as of the end of the month is not taken into account in the determination of the taxable base. Earlier, the Ministry of Taxation of Russia in its Letter No. SA-6-22/657 of June 11, 2003 cited Subitem 3 of Item 1 of Article 273 stating that expenses for the purchase of raw materials are taken into account in expenses as soon as they are written off to production.

Decision of the Constitutional Court of the Russian Federation No. 6-P of May 31, 2005 on the Case of Constitutionality of the Federal Law on Obligatory Insurance of Civil Liabilities of Owners of Transport Vehicles Pursuant to the Requests of the State Assembly - El Kurultay of the Republic of Altay, Volgograd Province Duma, Group of Deputies of the State Duma and Appeal of Citizen S.N.Shevtsov

According to the applicants, the right for free travel, choice of the place of stay and residence guaranteed by Part 1 of Article 27 of the Constitution of the Russian Federation is violated by the fact that owners of transport vehicles having failed to execute their duty to insure their civil liabilities are prohibited to use the given transport vehicles on the territory of the Russian Federation, carry out their technical examination and registration. The payment for the obligatory insurance in the form of an insurance premium does not take into account the cost of living in the country and makes it an incommensurable financial burden for the majority of citizens possessing transport vehicles. Besides, the rights of insurers are being restricted, since insurance is permitted only for the companies forming part of the professional association of insurers.

The Constitutional Court of the Russian Federation recognised as not contradicting the Constitution of the Russian Federation provisions stating that insuring civil liabilities is permitted only for companies forming part of the professional association of insurers, as well as the norm empowering the Government of the Russian Federation with authority to fix tariff rates for obligatory insurance (their limiting levels). The duty to insure the risk of civil liabilities by the owners of transport vehicles and inadmissibility of use of transport vehicles on the territory of the Russian Federation whose owners failed to execute this duty is also recognised as not contradicting the Constitution of the Russian Federation.

Meanwhile, not complying with the Constitution of the Russian Federation is recognised to be the provision of the Law "permitting the Government to define on the arbitrary basis the terms of the contract of obligatory insurance of the risks of civil liabilities of the owners of transports vehicles". However, this does not imply the loss of legal power by the normative legal acts of the Government of the Russian Federation adopted in compliance with the given Article and the contracts of obligatory insurance concluded in compliance with them.

Decision of the Government of the Russian Federation No. 346 of May 31, 2005 on the Indexing of the Pensions of the Federal State Servants

From July 1, 2002, the Pension Fund shall re-index the length-of-service pensions of the federal state servants out of those who include the average monthly earnings in the periods before July 1, 2002 in the average monthly earnings used to calculate the amount of the mentioned pension. The indexing of the pensions shall be done using the factor of 1.28 proceeding from the centralised increase from July 1, 2002 of the monetary subsistence of the mentioned servants by changing the amount of mark-ups to the salary for the occupied position for the special conditions of the state service.

Decision of the Government of the Russian Federation No. 345 of May 31, 2005 on the Cost of the Insurance Year for the Year of 2005

The cost of the insurance year in 2005 proceeding form the tariff rate for insurance contributions for obligatory pension insurance is fixed in the amount of Rbl 1,209.6.

Decision of the Government of the Russian Federation No. 344 of May 31, 2005 on the Interim Rate of the Import Customs Duty for Individual Types of Native and Modifies Starches

For individual types of native and modified starches (codes according to the Foreign Trade Commodity Nomenclature of the Russian Federation 1108 11 000 0, 1108 12 000 0, 1108 13 000 0, 1108 14 000 0, 1108 19 900 0, 3505 10 100 0, 3505 10 500 0, 3505 10 900 0) introduces for 9 months a new rate of the import customs duty in the amount of 20%, however, not less than EUR 0.06 per kg. Earlier, the rate for the starch of wheat, maize, potato and manioc, as well as for the one converted into an ester or ether, made 10% of the customs cost, for other - 10% of the customs cost, however, not less than EUR 0.03 per kg, for dextrines - 5% of the customs cost.

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

Decision of the Government of the Russian Federation No. 324 of May 24, 2005 on the Measures to Protect Russian Producers of Channel Iron

Introduces for 3 years an anti-dumping duty for the imported channel iron originating in the Ukraine and classified under Headings of the Foreign Trade Commodity Nomenclature of the Russian Federation 7216 10 000 0, 7216 31 110 0, 7216 31 190 0, 7216 31 910 0, 7216 31 990 0, 7228 70 100 0, 7228 70 310 0, 7228 70 990 0.

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

Order of the Federal Service of Enforcement in the Sphere of Protection of Consumer Rights and Human Well-Being No. 402 of May 20, 2005 on the Personal Medical Book and the Sanitary Certificate

Endorses the form of the personal medical book for the employees of individual occupations, production facilities and organisations whose activities are associated with production, storage, transportation and sale of foodstuffs and drinking water, education and up-bringing of children, communal and household services to population. Also endorses the form of the sanitary certificate for the specially designated or specially outfitted transport vehicles for moving foodstuffs.

Personal medical books and sanitary certificates are issued by hygiene and epidemiological centres.

Registered in the Ministry of Justice of the Russian Federation on June 1, 2005. Reg. No. 6674.

Order of the Federal Service of Enforcement in the Sphere of Protection of Consumer Rights and Human Well-Being No. 215 of February 28, 2005 on the Authority of the Heads of the Territorial Departments of the Federal Service of Enforcement in the Sphere of Protection of Consumer Rights and Human Well-Being

The mentioned persons are entitled to take decisions to include, as an exception procedure, in the length of state service of the federal state servants permitting to get a monthly mark-up for the length of services to the salary for the occupied position other periods of work (service) where experience and knowledge are necessary for the execution of the official duties of the occupied position of the federal state service. For the heads of the territorial departments of the Federal Service of Enforcement in the Sphere of Protection of Consumer Rights and Human Well-Being and their deputies, such right is granted to the head of the Federal Service of Enforcement in the Sphere of Protection of Consumer Rights and Human Well-Being on the basis of their personal applications and copies of labour-books.

Registered in the Ministry of Justice of the Russian Federation on May 31, 2005. Reg. No. 6666.

Order of the Ministry of Finance of the Russian Federation No. 67n of May 19, 2005 on the Invalidation of Some of the Orders of the Ministry of Finance of the Russian Federation

Invalidates the Orders of the Ministry of Finance of Russia No. 14n of January 28, 2004 on the endorsement of the procedure of submission by insurers of information on the conclusion, prolongation and termination of the contract of obligatory insurance of liabilities of the specialised depositary and management companies, No. 26n of March 1, 2004 on the reports of the specialised depositary of operations with resources of accumulated pensions and No. 29n of March 11, 2004 on the reports of the Pension Fund of the Russian Federation on generation and investing of resources of accumulated pensions.

Registered in the Ministry of Justice of the Russian Federation on May 31, 2005. Reg. No. 6662.

Order of the Ministry of Finance of the Russian Federation No. 56n of April 12, 2005 on the Endorsement of the Regulation on the Procedure of Presenting by the Federal Tax Service in Cases of Bankruptcy of the Banks of the Claims Rights to the Bank Assumed by the State Corporation "Deposit Insurance Agency" As a Result of Paying out of the Reimbursement on Deposits by the Mentioned Corporation

Defines the rules of presenting by the Federal Tax Service of Russia in cases of bankruptcy of the banks participating in the system of obligatory insurance of the deposits of the claims rights to the bank assumed by the state corporation "Deposit Insurance Agency" as a result of paying out of reimbursement on deposits by it, as well as adopted measures to recover amounts of debts from the bank to the agency claims.

The Federal Tax Service of Russia shall execute its duties to present the agency claims rights to the bank from the date of adoption of the decision by the arbitration court recognising the bank bankrupt and initiating bankruptcy proceedings for it and till the end of the bankruptcy proceedings.

Registered in the Ministry of Justice of the Russian Federation on May 31, 2005. Reg. No. 6661.

Direction of the Central Bank of Russia No. 1577-U of May 6, 2005 on the Reservation Requirement for the Cases of Transfer of Resources by Residents to Their Accounts (in Deposits) Opened in the Banks outside the Territory of the Russian Federation

When making the mentioned transfers, the requirement is introduced to reserve the amount of 25% of the amount of the carried out currency operation for the period of 15 calendar days until the day of its execution. The given requirement applies to residents (natural person independent entrepreneurs and legal entities including the currency exchanges) except for credit organisations.

The mentioned reservation requirement does not apply to transfers made by the resident legal entity to provide for the fulfilling of the representation functions by its division not being a legal entity and located outside the territory of the Russian Federation.

The Direction is entered into force from June 19, 2005.

Registered in the Ministry of Justice of the Russian Federation on May 31, 2005. Reg. No. 6659.

Direction of the Central Bank of Russia No. 1574-U of May 4, 2005 on the Opening of Accounts in the Banks outside the Territory of the Russian Federation by Residents Being Natural Person Independent Entrepreneurs and Legal Entities

Residents, except for the credit organisations and currency exchanges, shall open bank accounts in the currency of the Russian Federation and in foreign currencies in the banks located on the territories of foreign states not being OECD or FATF members after preliminary registration of the opened account in the tax bodies at the place of registration of the resident. The same requirement is specified for the opening of bank accounts in the currency of the Russian Federation in the banks located on the territories of foreign states being OECD or FATF members.

The Direction is entered into force from June 19, 2005.

Registered in the Ministry of Justice of the Russian Federation on May 31, 2005. Reg. No. 6658.

Regulation of the Central Bank of Russia No. 269-P of May 4, 2005 on the Opening of Bank Accounts of Non-Residents in the Currency of the Russian Federation by the Bank of Russia and Operations Carried out on These Accounts

Divisions of the payment network of the Bank of Russia may open the mentioned accounts within their sphere of reference, if there are applications from non-residents to open bank accounts in the currency of the Russian Federation, and carry out operations on these accounts. In this case, special bank accounts of non-residents in the currency of the Russian Federation are not opened by the divisions of the payment network of the Bank of Russia.

The Regulation explains the procedure of carrying out operations on type T rouble accounts of non-residents, rouble correspondent accounts of non-resident banks, type I rouble accounts of non-residents, type K, N, F accounts of non-residents in the currency of the Russian Federation opened by the Bank of Russia before June 18, 2004.

The Regulation 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 May 31, 2005. Reg. No. 6657.

Order of the Ministry of Natural Resources of the Russian Federation No. 70 of March 23, 2005 on the Endorsement of the List of the Types of Special Water Uses

The special water uses shall include the use of water objects or parts thereof for the purpose of drinking and economic and household water supplies, public health, industry and power supplies, agriculture, forestry, hydro power stations, recreation, transport, construction, fishery, hunting, rafting, extraction of underground water, mineral resources, peat and putrid mud, as well as for other purposes if the mentioned purposes of water use are implemented while applying separate structures, technical means and devices.

Registered in the Ministry of Justice of the Russian Federation on May 31, 2005. Reg. No. 6656.

Federal Law No. 57-FZ of June 3, 2005 on the Amendments to the Legislative Acts of the Russian Federation Pursuant to the Adoption of the Federal Law on Archive Activities in the Russian Federation

Pursuant to the adoption of the Federal Law No. 125-FZ of October 22, 2004 on archive activities in the Russian Federation, the Law of the Russian Federation No. 5341-1 of July 7, 1993 "Fundamentals of the Legislation of the Russian Federation on the Archive Fund of the Russian Federation and Archives" is invalidated. The amendments replace references to the actual document.

Federal Law No. 56-FZ of June 3, 2005 on the Ratification of the Protocols Pertaining to the Changes to the Convention on International Civil Aviation

Ratifies the protocols pertaining to individual changes to the Convention on international civil aviation singed in Montreal.

Federal Law No. 55-FZ of June 3, 2005 on the Amendments to Article 346.9 of Part 2 of the Tax Code of the Russian Federation

Specifies that advance payments for the uniform agricultural tax must be transferred no later than 25 days after the end of the reported period.

Besides, amends Part 5 of Article 346.9 of the Tax Code whereby the time limits for the transfer of the uniform agricultural tax at the end of the tax period by organisations and independent entrepreneurs are being tied to the time limits of submission of the tax declarations for the tax period for the given categories of taxpayers.

The Federal Law is entered into force from January 1, 2006, however, no sooner than one month after the day of its official publication.

Ruling of the Constitutional Court of the Russian Federation No. 93-O of February 15, 2005 on the Refusal to Accept for Examination the Appeal of the Limited-Liability Company "Tayga-Ex" against Violation of Constitutional Rights and Freedoms by Provisions of Item 2 of Article 169, Paragraph 2 of Item 1 and Item 6 of Article 172 and Paragraph 3 of Item 4 of Article 176 of the Tax Code of the Russian Federation

The applicant appealed against individual provisions of the Tax Code specifying the requirements to the procedure of drawing up and putting forward of invoices envisaging the duty to present initial documents in substantiation of VAT exemptions defining the moment of acceptance of VAT amounts paid from received advance payments, as well as fixing the procedure of adoption of decisions by the tax bodies to reimburse VAT amounts.

Earlier, the applicant received a partial refusal of VAT reimbursement, since presented invoices, according to the tax body, either did not show or contained incorrect information of suppliers and purchased commodities and, judging from the dates indicated in the documents, the commodities were exported before the moment of purchase.

The Constitutional Court explained that the taxpayer in substantiation of the tax exemption must present only an adequate invoice containing all necessary information and may not present for exemption the tax amount accrued under a defective invoice containing incorrect or incomplete information. The duty to confirm the substantiation of the tax exemptions by initial documentation rests with the taxpayer buying commodities (works, services), since it is him who acts as the subject applying tax exemptions put forward by suppliers in the calculation of the resulting tax amount due to the budget.

Order of the Ministry of Information Technologies and Communication of the Russian Federation No. 37 of March 31, 2005 on the Endorsement of the Rules of Granting Subsidies in 2005 to Organisations of Communication and Information Technologies

Specifies the procedure of granting of state support in 2005 to organisations of communication and information technologies (except for the budget-supported institutions) by providing subsidies at the expense of the resources of the federal budget. The subsidies are provided to communication organisations providing for the readiness of the means of communication at the special objects of the higher bodies of power and management of the Russian Federation in the special period, as well as organisations of the federal postal communication to cover the losses when rendering the services of multi-purpose postal communication at tariff rates regulated by the state.

Registered in the Ministry of Justice of the Russian Federation on June 1, 2005. Reg. No. 6672.

Order of the Ministry of Emergency Situations of the Russian Federation No. 365 of April 29, 2005 on the Monthly Salaries for the Typical Military Positions Paid out to Draft Servicemen

Specifies amounts of monthly salaries for the typical military positions paid out to draft servicemen depending on the tariff grade specified for the occupied military position. Amounts of salaries are fixed as of April 1, 2005, an increase being envisaged from September 1, 2005.

Registered in the Ministry of Justice of the Russian Federation on May 31, 2005. Reg. No. 6669.

Order of the Ministry of Economic Development of the Russian Federation No. 6 of January 25, 2005 on the Endorsement of the Forms of the Decision on the Appeal and Act of Examination of the Appeal According to Simplified Procedure

Endorses the forms of the decision of the customs body on the appeal against the decision, action (failure to act) of the customs body or its official and the act of examination of the mentioned appeal according to simplified procedure. The decision must contain a short description of the challenged decision, action (failure to act), reason of its adoption (committing), essence of the appeal, main arguments of the applicant, circumstances established while examining the appeal, assessment of the challenged decision, action (failure to act) to check its legality, arguments and substantiation of the adopted decision with references to the normative legal acts.

Registered in the Ministry of Justice of the Russian Federation on May 31, 2005. Reg. No. 6664.

Order of the Ministry of the Industry and Power Supplies of the Russian Federation No. 92 of April 26, 2005 on the Rules of Providing Subsidies in 2005 to the Federal Governmental Enterprises

Specifies the procedure of granting subsidies in 2005 to the actual and arranged federal governmental enterprises within the limits of the budget allocations and the limits of budget obligations envisaged for the mentioned purposes by the Ministry of the Industry and Power Supplies of Russia. The subsidies are provided on a gratuitous and non-repayable basis for tied expenses as a result of economic activities for the reported period for enterprises in operation, as well as expenses pertaining to creation of the federal governmental enterprises. The newly created enterprises may also get resources to cover expenses pertaining to organisational and legal issues of creation of the enterprise.

Registered in the Ministry of Justice of the Russian Federation on May 31, 2005. Reg. No. 6660.

Letter of the Federal Tax Service No. 22-3-11/611@ of April 19, 2005 on the Use of Cash Registers in Monetary Payments with Population

In cases of power outage, organisations and independent entrepreneurs selling commodities may not use slips of OKUD Form 0700003 endorsed by the Letter of the Ministry of Finance of Russia No. 16-00-24-32 of March 12, 1999 instead of the cash registers. The Federal Law No. 54-FZ of May 22, 2003 on the use of cash registers in monetary payments in cash and/or payments using pay cards also does not permit to make cash payments and/or payments using pay cards without the use of cash registers in such cases.

Letter of the Central Bank of Russia No. 47-T of March 24, 2005 on the Methodology Recommendations on the Checking and Assessment of Organization of Internal Control in Credit Organisations

The Methodology Recommendations are used by authorised representatives of the Bank of Russia to make a motivated judgement to test new approaches to assessment of internal control in credit organisations when carrying out complex and thematic checks.

Territorial institutions of the Bank of Russia are not recommended to use forceful measures to credit organisations as a result of assessment of organisation of internal control in the credit organisation on the basis of the Methodology Recommendations.

Decree of the President of the Russian Federation No. 627 of June 1, 2005 on the Endorsement of the Regulation on the Operative Territorial Command of Internal Troops of the Ministry of Internal Affairs of the Russian Federation

The operative territorial command of internal troops of the Ministry of Internal Affairs of Russia is a main military and administrative unit of internal troops of the Russian Federation and is intended to fulfil the tasks vested in internal troops.

The operative territorial command includes the bodies of military management, units and institutions of internal troops deployed on its territory, except for the units and institutions of internal troops directly subordinate to the Commander-in-Chief of internal troops of the Ministry of Internal Affairs of Russia. Decisions on the creation, reorganisation and liquidation of operative territorial commands are taken by the President of the Russian Federation at the presentation of the Minister of Internal Affairs.

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

Information Letter of the Presidium of the Higher Arbitration Court of the Russian Federation No. 92 of May 30, 2005 on the Processing of Cases Challenging Property Assessment by an Independent Assessor in the Courts of Arbitration

The challenging of the cost of object of assessment as defined by an independent assessor by filing an independent lawsuit is permitted only if a law or another normative legal act envisage an obligatory assessment of such value for the parties of the transaction, state body, official, bodies of management of the legal entity. In such case, such challenging is permitted only before the moment of conclusion of the contract (issue of the act by the state body or adoption of the decision by the official or the management body of the legal entity).

If the law of another normative act do not envisage the fixing of the cost of the object on the obligatory basis, property assessment is of recommended nature and is not obligatory and, therefore, its independent challenging by filing a separate lawsuit is not permitted.

Information Letter of the Presidium of the Higher Arbitration Court of the Russian Federation No. 91 of May 25, 2005 on Some Issues of Application of Chapter 25.3 of the Tax Code of the Russian Federation by Arbitration Courts

Explains individual issues of the judicial practice pertaining to application of Chapter 25.3 "State Duty" of the Tax Code.

In particular, the evidence of payment of the state duty in cashless form is the payment order containing in the field "Written off from the Payer Account" the date of writing off of monetary resources from the payer account and in the field "Bank Remarks" the bank stamp and signature of the executor in charge.

Writs of execution to collect the state duty from the respondents are issued 10 days after the entry of the court ruling in legal force in the absence of information in the file of the payment of the state duty by the payer on the voluntary basis.

The Letter emphasises that applications challenging the decisions and actions (failure to act) of the bailiff are exempted form the state duty.

Order of the Ministry of Finance of the Russian Federation No. 68n of June 3, 2005 on the Procedure of Entry into Force of the Order of the Ministry of Finance of the Russian Federation No. 57n of April 14, 2005

The Order of the Ministry of Finance of Russia No. 57n of April 14, 2005 on the amendments to the Directions on the procedure of application of the budget classification of the Russian Federation endorsed by the Order of the Ministry of Finance of the Russian Federation No. 114n of December 10, 2004 is entered into force from the day of its signing.

Order of the Ministry of Finance of the Russian Federation No. 57n of April 14, 2005 on the Amendments to the Directions on the Procedure of Application of the Budget Classification of the Russian Federation Endorsed by the Order of the Ministry of Finance of the Russian Federation No. 114n of December 10, 2004

Changes the procedure of administration of incomes from the payment of the state duty and registration of expenses for the implementation of the tied federal programs (subprograms).

Section V "Types of Expenses of the Functional Classification of Expenses of the Budgets of the Russian Federation" is extended to include new types of expenses pertaining to the work of the Public Chamber of the Russian Federation, redemption of the debts of the budgets under obligations arising from the Laws on the rehabilitation of the victims of political repressions, on the donorship of blood and its components, as well as additional monthly material support for some categories of citizens of the Russian Federation in view of the 60th Anniversary of the Victory.

Classification of incomes of the budgets of the Russian Federation shall also include new types of incomes.

Federal Law No. 59-FZ of June 6, 2005 on the Amendments to the Law of the Russian Federation on the Private Detective and Bodyguard Activities in the Russian Federation

The Law is extended to include Article 11.1 specifying the legal status of a private bodyguard. The private bodyguard works under a labour contract with a bodyguard organisation. The Law lists the categories of persons who may not claim the legal status of a private bodyguard. They include, in particular, persons not being the citizens of the Russian Federation, those under 18 years of age, with disability or restricted abilities, persons with a history in premeditated crimes and some other.

Citizens engaged in detective and private bodyguard activities must be insured on the obligatory basis at the expense of resources of the appropriate enterprises (association) for the cases of death, injuries or any other damage to health because of investigation or bodyguard engagement.

Federal Law No. 58-FZ of June 6, 2005 on the Amendments to Part 2 of the Tax Code of the Russian Federation and Some Other Legislative Acts of the Russian Federation on Taxes and Fees

Amends Chapter 23 "Income Tax from Natural Persons" and Chapter 25 "Profit Tax from Organisations" of the Tax Code.

Changes the procedure of determination of the income (losses) in purchase and sale operations with securities. The documentary-confirmed expenses of purchase, sale and storage of securities actually suffered by the taxpayer include the tax on inheritance and/or donation paid by the taxpayer when obtaining the securities on the proprietary basis. Besides, the documentary-confirmed taxpayer expenses include expenses of purchase of stocks possessed by the taxpayer before their exchange (conversion). The Law excludes opportunities of application of property exemption in taxation of incomes of natural persons in operations with securities if the taxpayer expenses cannot be confirmed with documents.

The Law refines the composition of non-sale incomes for the purpose of calculation of the profit tax. Non-sale expenses include expenses in the form of a bonus (discount) paid out (granted) to the buyer by the seller in case of fulfilling of certain terms of the contract, in particular, the volume of purchase.

Specifies that determination of the taxable base for the profit tax does not take into account incomes in the form of capital investments in the from of non-removable improvements of the leased property made by the leaseholder. The mentioned investments are qualified as amortizable assets.

Expenses reducing the taxable base include expenses abroad the Russian Federation and confirmed with documents drawn up in compliance with the legislation of foreign states. Material expenses include travel and luggage expenses if the residents of the North are relocated to the permanent place of residence. Expenses exempted from taxation include expenses in cases of additional construction, additional equipment, reconstruction, modernisation of the objects of fixed assets.

At present, other expenses pertaining to production are permitted to include expenses pertaining to the maintenance of the rooms of objects of public catering. To avoid misinterpretation, there is an amendment specifying that such expenses are taken into account in other expenses only if they are not taken into account in expenses pertaining to the use of servicing production facilities in compliance with Article 275.1 of the Tax Code.

Article 269 of the Tax Code permits taxpayers to exempt from the taxable base interest for the debts in the amount of the rate of refinancing of the Bank of Russia multiplied by 1.1 for the liabilities in roubles. Specifies that the mentioned rate should be assumed as of the date of attraction of the monetary resources (for the debts that do not contain the provision of change of the interest rate during the whole period of the debt) and as of the date of acceptance of expenses in the form of interest (for other debts).

A number of changes pertains to the determination of the taxable base for separate divisions of the taxpayer. If the taxpayer has several separate divisions on the territory of one subject of the Russian Federation, distribution of profits for each of these divisions is not necessary. Amount of tax due to the budget of this subject in this case is determined proceeding from the share of profit calculated from the multitude of figures of separate divisions on the territory of the given subject. In this case, the taxpayer shall choose independently the separate division to be used to pay the tax to the budget of this subject, having notified of the adopted decision the tax bodies where the separate division is registered for taxation purposes.

The Law amends Articles 290 and 291 of the Tax Code specifying the particulars of determination of incomes and expenses of the banks. Thus, bank incomes do not include insurance payments received under insurance contracts for the cases of death or disability of the borrower within the limits of the amount of the debt of the borrower for the borrowed (credit) resources and accrued interest redeemed (forgiven) by the bank at the expense of the mentioned insurance payments.

Changes the procedure of determination of expenses in trade operations.

Envisages prolongation of the earlier available (until January 1, 2002) procedure of taxation of series IV and V bonds of the internal state currency loan with primary holders.

The Federal Law is entered into force from January 1, 2006, however, no sooner than one month after the day of its official publication, except for individual provisions where another procedure for entry into force is envisaged.

Decree of the President of the Russian Federation No. 589 of May 26, 2005 on the Improvement of Labour Remuneration for the Persons Occupying State Positions of the Federal State Service in the Territorial Bodies of the Federal Bodies of Executive Power, Offices of Some Federal Courts and Departments of the Judicial Department of the Supreme Court of the Russian Federation in the Subjects of the Russian Federation

The mentioned persons shall get monthly monetary award in the amount of a single salary for the occupied position.

The Decree is entered into force from April 1, 2005.

Decision of the Government of the Russian Federation No. 350 of June 1, 2005 on the Keeping of the State Register of Municipal Formations of the Russian Federation

All municipal formations on the territory of the Russian Federation with charters registered according to established procedure must be entered in the state register. The keeping of the state register is vested in the Ministry of Justice of the Russian Federation and its territorial bodies.

The Decision lists the documents to be submitted to the Ministry of Justice of Russia to enter the municipal formation in the state register.

Order of the Ministry of Natural Resources of the Russian Federation No. 97 of April 14, 2005 on the Endorsement of the Procedure of Organisation and Carrying out of the Forestry Auctions

The endorsed procedure defines the principles and rules of carrying out of the forestry auctions to grant parts of the forestry fund of the Russian Federation for short-term use.

It is not permitted to arrange closed forestry auctions as to the composition of participants.

To participate in the forestry auction, the buyer must transfer an advance payment in the amount of 10% of the starting price of the auction unit. The advance payment is included later in the price of the purchased auction unit or retuned to participants of the forestry auction having failed to buy.

Registered in the Ministry of Justice of the Russian Federation on June 6, 2005. Reg. No. 6690.

Order of the Federal Service for Tariff Rates No. 204-t/5 of May 17, 2005 on the Amendments to the Price List No. 10-01 "Tariff Rates for Cargo Transportation and the Services of Infrastructure Provided by the Russian Railways"

Specifies that the Tariff Guide defines tariff rates for cargo transportation provided by the OAO "Russian Railways" over the infrastructure of the public-use railway transport owned by the Russian Railways and for the services of the use of infrastructure of the Russian Railways.

Specifies the particulars of application of coefficients to determine the payment for the cargo transportation in multi-purpose containers of the common rolling stock and own (leased) ones, as well as for the transportation of own (leased) empty containers.

A new wording is provided for the procedure of determination of payment for the delivery under one shipment document in a multi-purpose car or heavy-duty container of cargo for personal, family, household and other needs other than entrepreneurial activities and cargo owned by consignees and consignors other than the one included in the above categories.

Registered in the Ministry of Justice of the Russian Federation on June 6, 2005. Reg. No. 6685.

Order of the Ministry of Public Health and Social Development of the Russian Federation No. 338 of May 16, 2005 on the Amendments to Appendix 2 to the Order of the Ministry of Public Health and Social Development of Russia No. 83 of August 16, 2004 on the Endorsement of the Lists of Adverse and/or Hazardous Industrial Factors and Works Requiring Preliminary and Periodic Medical Examinations and the Procedure of Such Examinations

The list of the works requiring preliminary and periodic medical examinations includes works of direct control of transport vehicles, works in organisations of the food industry, public catering, trade, educational institutions, medical treatment and prevention institutions, organisations of household services, hotels, as well as the work of the medical personnel of maternity homes and hospitals for children.

Registered in the Ministry of Justice of the Russian Federation on June 3, 2005. Reg. No. 6677.

Direction of the Central Bank of Russia No. 1581-U of June 1, 2005 on the Amendments to the Regulation of the Bank of Russia No. 103-P of December 30, 1999 on the Accounting Procedure for Operations of Issue and Redemption of Savings and Deposit Certificates by Credit Organisations

Amends the procedure of calculation of the interest for the amount of the certificate pursuant to the amendments to Article 839 of the Civil Code of the Russian Federation stating that the interest for the amount of the bank deposit are accrued until the day of its return to the depositor inclusive, and if written off from depositor account for other reasons, until the day of writing off inclusive. Invalidates the Methodology Recommendations on the procedure of calculation of the interest to be shown in the certificate requisites.

The Direction is entered into force 10 days after the day of its official publication in the Herald of the Bank of Russia.

Direction of the Central Bank of Russia No. 1576-U of May 4, 2005 on the Invalidation of Individual Normative Acts of the Bank of Russia

Pursuant to the entry into force of Article 12 of the Federal Law No. 173-FZ of December 10, 2003 on the currency regulation and currency control regulating the procedure of opening and use of accounts of resident legal entities in foreign banks, invalidates the Direction of the Bank of Russia No. 1010-U of August 3, 2001 on the list of foreign states (territories) and their currencies not being free convertible ones where residents may open accounts abroad the Russian Federation according to the notification procedure to make payments under international construction contracts.

The Direction is entered into force from June 19, 2005.

Decision of the Government of the Russian Federation No. 355 of June 6, 2005 on the Amendments to the Decision of the Government of the Russian Federation No. 1057 of September 13, 1994

Amends the list of countries using the preference scheme of the Russian Federation. The mentioned list includes Democratic Republic of Congo, Serbia and Montenegro, Democratic Republic of East Timor and Eritrea. The list does not include now Zaire, Cyprus, Malta, Slovenia and Yugoslavia.

Specifies that the national scheme of preferences must be revised periodically - at least once in five years, not annually, as was specified earlier.

Decision of the Government of the Russian Federation No. 353 of June 6, 2005 on the Endorsement of the Rules of Rendering Services of Wired Radio Broadcasting

The endorsed rules shall regulate relations between the citizen or legal entity and communication operator when rendering services of wired radio broadcasting.

Communication operator shall convey to the user a sound program (programs) over the network of wired radio broadcasting from 6:00 to 24:00 local time with a break not greater than 1 hour on working days in the daytime.

The contract for the services of wired radio broadcasting is effected through concluding actions, considered to be concluded from the date of transfer by the user of the payment for the access to the network of wired radio broadcasting provided by the operator. If the applicant wishes so, the contract with him may be concluded in written form. The contract is concluded for an indefinite period of time, but the period may be fixed if the applicant wishes so. Tariff rates for the services of wired radio broadcasting are specified by the communication operator if otherwise is not envisaged in the legislation. The settlement period to put forward the bill for the rendered services makes 1 month. The payment shall be made no later than within 10 days from the end of the settlement period.

The rules are entered into force form July 1, 2005.

Decision of the Government of the Russian Federation No. 352 of June 6, 2005 on the Procedure for Paying the State Duty for the Appeal (Application) to Court on Issues of Military Service by Draft Servicemen

Reimbursement of expenses for the payment of the state duty for the appeal (application) to court on issues pertaining to military service to servicemen is vested in the military units at the place of service. The procedure of reimbursement of the mentioned expenses to servicemen is specified by the heads of the federal bodies of executive power where the military service is envisaged by the federal law.

The Decision applies to legal relations emerging from January 1, 2005.

Order of the Ministry of Finance of the Russian Federation No. 66n of May 19, 2005 on the Endorsement of the Form of the Tax Estimate for Advance Payments for the Land Tax and Its Filling Recommendations

In pursuance of Item 2 of Article 398 of the Tax Code, endorses the form of the tax estimate for advance payments for the land tax (KND Form 1153003) and its filling recommendations. Tax estimates are presented by the taxpayer during the whole of the tax period for each reporting period no later than the last of the month following the expired reporting period. The estimate at the end of the reporting period is submitted to the tax bodies where the taxpayers are registered at the place of location of the land plots. If the taxpayer has several objects of taxation on the territory of one municipal formation, only one estimate is submitted to the tax body where the taxpayer is registered at the place of location of the land plots.

The Order shall apply beginning with the estimates of advance payments of the land tax for the second reporting period of 2005.

Registered in the Ministry of Justice of the Russian Federation on June 6, 2005. Reg. No. 6692.

Decision of the Government of the Russian Federation No. 360 of June 7, 2005 on the Endorsement of the Rules of Partial Financing in 2005 of Preventive Measures to Reduce Industrial Injuries and Occupational Diseases of Employees

Defines the procedure and terms of partial financing in 2005 of preventive measures to reduce industrial injuries and occupational diseases of insurant employees, including the financing of their periodic medical examinations and preventive treatment including the sanatorium and resort treatment of employees engaged in works involving adverse and/or hazardous industrial factors. The list of preventive measures is endorsed by the Ministry of Public Health and Social Development of Russia in coordination with the Social Insurance Fund of Russia.

Amount of recourses allocated by the insurant for the partial financing may not be greater than 20% of the insurance contributions transferred by this insurant to the Social Insurance Fund of Russia for the year 2004 less fund's expenses to pay out insurance support in insured cases occurred with this insurant in 2000-2004. Insurant applications for the partial financing of preventive measures are accepted until August 1, 2005.

Decision of the Government of the Russian Federation No. 357 of June 6, 2005 on the Endorsement of the Rules of Reimbursement from the Federal Budget to Russian Exporters of Industrial Products of the Part of Expenses to Pay Interest under Credits Obtained in 2005 in Russian Credit Organisations

Reimbursement applies to Russian organisations exporting industrial products for at least 3 years and meeting a number of requirements. Thus, the organisation must export industrial products with a high degree of processing, execute credits contracts in due time and in volumes specified in the schedule of redemption of the credit and must not have overdue debts in obligatory payments to the federal budget and the state extra-budgetary funds.

If the credit is granted in Russian roubles, reimbursement is made proceeding form 2/3 of expenses made by the organisation to pay the interest under the credit on condition that the interest rate under the credit is less than the rate of refinancing of the Bank of Russia or equal to it. If the interest rate of the credit is higher than the rate of refinancing, reimbursement is made proceeding from 2/3 of the rate of refinancing as of the date of payment.

If the credit is granted in a foreign currency, reimbursement is also made in Russian roubles proceeding from 2/3 of the suffered expenses to pay the interest. When calculating the maximum amount of reimbursement, the interest rate for the obtained credit in foreign currency is assumed to be equal to 12% annual.

The Decision lists the documents to be submitted to the Ministry of the Industry and Power Supplies of Russia to get the reimbursement.

The priority right to get the reimbursement rests with organisations having won international contests (tenders) for supplies of industrial products.

Order of the Federal Service of Tariff Rates No. 130-e of April 8, 2005 on the Endorsement of the Regulation on the Processing of Cases of Fixing of Tariff Rates and/or Their Limiting Levels for Electric (Thermal) Power and for the Services Rendered at the Wholesale and Retail Trade Markets of Electric (Thermal) Power

Defines the procedure of examination of issues of fixing of tariff rates and/or their limiting levels for electric (thermal) power and for the services rendered at the wholesale and retail trade markets of electric (thermal) power, as well as of adoption of decisions on the mentioned issued by the regulatory bodies.

The cases shall be processed pursuant to applications of organisations in charge of the regulatory activities and motivated proposals submitted to the body in charge of the regulation (application with attached substantiation materials), as well as at the initiative of the body in charge of the regulation.

Registered in the Ministry of Justice of the Russian Federation on June 7, 2005. Reg. No. 6696.

Order of the Ministry of Information Technologies and Communication of the Russian Federation No. 55 of May 19, 2005 on the Endorsement of the Regulation on the Keeping of the Register of Major Operator in the Public-Use Communication Network

Specifies the procedure of keeping of the register of major operator in the public-use communication network. The keeping of the register is vested in the Federal Service of Enforcement in the Sphere of Communication. Decisions to include communication operators in the register and exclude them from it are taken on the basis of results of analysis of information received from communication operators and other sources showing operator standing in the public-use communication network or absence of grounds to be present on the register.

Information of the register shall be published on the site of the Federal Service of Enforcement in the Sphere of Communication of the information portal of the Ministry of Information Technologies and Communication of Russia.

Registered in the Ministry of Justice of the Russian Federation on June 6, 2005. Reg. No. 6693.

Direction of the Central Bank of Russia No. 1579-U of May 25, 2005 on the Amendments to the Direction of the Bank of Russia No. 1376-U of January 16, 2004 on the List, Forms and Procedure of Drawing up and Submission of the Forms of Reports of Credit Organisations to the Central Bank of the Russian Federation

Introduces five new forms of reports: 0409207 "Information of Currency Notes with Sings of Forgery Handed over to the Territorial Bodies of Internal Affairs" (submitted on irregular basis), 0409404 "Information of Investments of the Authorised Bank and Its Resident Clients (Other Then Credit Organisations) in Securities Issued by Non-Residents", 0409906 "Report of the Number of Accounts for Resources of the Budgets of All Levels of the Budget System of the Russian Federation and Resources from Entrepreneurial and Other Profitable Activities", 0409907 "Report of the Residues on Accounts of Resources of the Budgets of All Levels of the Budget System of the Russian Federation and Resources from Entrepreneurial and Other Profitable Activities", 0409908 "Report of the Residues on Accounts Opened to Organisations for Resources of the Federal Budget Allocated on the Repayable Basis to Finance Investment Projects and Programs of Conversion of the Defence Industry, Build a Special Fund of Beneficial Crediting of Seaso nal Expenses in the Agroindustrial Complex".

Six forms of reports are provided in a new wording: 0409115 "Information on the Quality of Loans, Debts in Loans and Similar Debts", 0409155 "Information on Reserves for Possible Losses", 0409302 "Information on Credits and Debts in Credits Granted to Borrowers of Various Regions", 0409345 "Information on the Daily Residues of the Monetary Resources of Natural Persons in Deposits Subject to Insurance", 0409608 "Report of Operations of Import and Export of the Currency of the Russian Federation and Resources of the Federal Budget" and 0409901 "Operative Report of the Residues on Accounts of Incomes Allocated among the Levels of the Budget System of the Russian Federation and the Resources of the Federal Budget".

Amends 10 following forms of reports (0409110, 0409135, 0409156, 0409350, 0409401, 0409664, 0409806, 0409807, 0409808 and 0409904) and more than 70 procedures of drawing up and submission of the forms of reports. The main changes pertain to the procedure of submission of reports of major credit organisations with a wide network of divisions.

Report drawn up to Form 0409301 "Individual Figures Characterising Activities of the Credit Organisation" is submitted to the territorial institution of the Bank of Russia as of the beginning of the working day of the 1st of the month - no later than 15:45 (earlier, 16:00) Moscow time of the working day following the reported one. If the period of non-working days includes two or more reporting dates, the mentioned report is submitted as of the first reporting date.

Changes the time limit for submission of the report of Form 0409345 "Information on the Daily Residues of the Monetary Resources of Natural Persons in Deposits Subject to Insurance". The mentioned information is submitted by major credit organisations with a wide network of divisions no later than the 24th of the month following the reported quarter, by the rest of credit organisations - no later than the 15th of the month following the reported quarter. Earlier, there was a single time limit - no later than the 15th of the month following the reported quarter.

As to Form 0409350, the territorial institution of the Bank of Russia, in the presence of reasons to implement the measures of prevention of bankruptcy of credit organisations, may introduce the daily (weekly) periods of submission of the mentioned reports.

Reports drawn up to Form 0409652 on the flow of resources in foreign currencies on transit currency accounts of residents for the days-off and non-working holidays are not submitted by the authorised bank. If there are transfers (writing-off) of monetary resources on transit currency accounts (from transit currency accounts) of residents on days-off or/and non-working holidays, the authorised bank shall show the mentioned operations in the report for the first working day following the days-off or/and non-working holidays.

The Direction changes the time limits of submission of the report of currency operations carried out using the transaction certificate drawn up to Form 0409665. The given report is submitted by the authorised bank, where the transaction certificate has been drawn up or redrawn under the contract, on the monthly basis no later than the 17th working day of the month following the reported one. Earlier, the report must have been submitted within 2 working days following the date of its drawing.

The Direction is entered into force from July 1, 2005 except for the provision on the drawing up and submission by credit organisations of the report drawn up to Form 0409155 "Information on the Reserves for Possible Losses" to be entered into force from August 1, 2005.

Registration pending in the Ministry of Justice of the Russian Federation.

Decision of the Government of the Russian Federation No. 364 of June 9, 2005 on the Endorsement of the Regulations on the Licensing in the Sphere of Foreign Trade of Commodities and on the Building and Keeping of the Federal Databank of Issued Licenses

Defines the administrative procedure of regulation of foreign trade operations implemented through the issue of the document permitting the export and/or import of individual types of commodities. The licensing applies to the cases of introduction of temporary quantity restrictions for the export or import of individual types of commodities, granting of exclusive right for the export and/or import of individual types of commodities, as well as fulfilling of international obligations of the Russian Federation. Besides, the licensing of export and/or import of commodities applies to individual types of commodities that may affect the security of the state, life and health of citizens, property of natural persons or legal entities, state or municipal property, environment, life and health of animals and plants.

The licences are issued by the Ministry of Economic Development of Russia and may be of the following types: single (for up to one year, issued for the export or import of individual type of commodity in a certain amount), general (for up to one year, issued on the basis of the Decision of the Government of the Russian Federation) and exclusive (grants exclusive right of export and/or import of individual type of commodity defined in the Federal Law). The earlier issued licenses for the export and import of commodities preserve their force until expiry.

Specifies the procedure of building and keeping by the Ministry of Economic Development of Russia of the federal databank of issued licenses.

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

Decision of the Government of the Russian Federation No. 363 of June 9, 2005 on the Endorsement of the Regulation on the Monitoring of Export and/or Import of Individual Types of Commodities

Defines the procedure of monitoring of the export and/or import of individual types of commodities in cases of introduction of special protective, antidumping and compensation measures or application of the customs tariff regulation pertaining to introduction or changing of import or export customs duties or introduction of prohibitions and restrictions in foreign trade of commodities. The list of such commodities is specified by the Government of the Russian Federation. The monitoring is implemented through issue by the Ministry of Economic Development of Russia through its territorial bodies of permissions for the export and/or import of these commodities without restrictions to any participant of foreign trade activities. Application to obtain the permission is submitted according to the form endorsed by the Ministry of Economic Development of Russia. Absence of the permission serves as grounds to refuse release of commodities by the customs body of the Russian Federation.

The monitoring is a temporary measure and is implemented to assess application of measures of state regulation of foreign-trade activities.

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

Decision of the Government of the Russian Federation No. 362 of June 8, 2005 on the Handing over of Federal State Institutions to the Subjects of the Russian Federation, Spending and Registration of Resources to Grant Subventions from the Federal Budget to the Subjects of the Russian Federation to Implement the Right of Possession, Use and Disposal of Forests Earlier Owned by Agricultural Organisations, Their Protection and Reproduction, As Well As Distribution of the Resources of the Federal Budget Handed over in 2005 to the Bodies of State Power of the Subjects of the Russian Federation in the Form of Subventions

Lists federal state institutions that must be handed over to the subjects of the Russian Federation. Also amends the method of distribution of subventions from the Federal Fund of Compensations among the subjects of the Russian Federation for the year 2005. The amendments pertain to the procedure of distribution of subventions among the subjects of the Russian Federation for the implementation of the right of possession, use and disposal of forests earlier owned by agricultural organisations, their protection and reproduction.

Decision of the Government of the Russian Federation No. 361 of June 7, 2005 on the Amendments to the Method of Distribution of Subventions from the Federal Fund of Compensations among the Subjects of the Russian Federation for the Year 2005

The amendments pertain to the procedure of distribution of subventions from the Federal Fund of Compensations to finance expenses to implement the authority of the bodies of state power of the subjects of the Russian Federation to extinguish forest fires in the forestry fund of the Russian Federation.

Order of the Government of the Russian Federation No. 748-r of June 9, 2005

Approves the concept of creation of the system of personal records of the population of the Russian Federation. The concept defines the role and place of the system of personal records in the structure of the state information systems and resources, goals, principles, structure, functions and main stages of creation and development of the system of personal records, as well as the sources of financing.

The document envisages introduction of a uniform identifier of personal data providing for opportunities of unambiguous identification of correspondence of personal data placed in various automatic systems of records with a particular natural person. The personal information will be used by the bodies of state power and local government, in particular, to ensure collection of taxes, implementation of the main structural reforms and combating of terrorism.

The state register of population will be created containing vital initial identification information of citizens and their corresponding personal information identifiers. The identifier of the personal information will be assigned once when a child is born, when a natural person applies to the bodies of state power, when a foreign citizen or stateless person gets Russian citizenship, when foreign citizens or stateless persons are registered at the place of stay on the territory of the Russian Federation.

Expected period of creation of the system makes seven years.

Decision of the Government of the Russian Federation No. 376 of June 14, 2005 on the Amendments to the Regulation on the Licensing of Activities in Development, Production, Sale and Purchase for Sale by Independent Entrepreneurs and Legal Entities Engaged in Entrepreneurial Activities of Special Technical Means Intended for Covert Obtaining of Information

Makes more stringent license requirements and terms of activities in development, production, sale and purchase for sale of special technical means. Thus, to carry out such activities, independent entrepreneurs and legal entities must have requirement specifications for development of special means endorsed by the bodies carrying out operative investigation work and contracts for their production. Access to information on the special means and technical documentation on them is permitted only with the written request of the body carrying out operative investigation work or authorised license holder after coordinating opportunities of providing access with the federal body of executive power having ordered the development of the special means.

Decision of the Government of the Russian Federation No. 373 of June 10, 2005 on the Amendments to the Rules of Reimbursement from the Federal Budget of the Part of Expenses to Pay the Interest under Credits Obtained by Organisations of the Fuel and Power-Supply Complex in Russian Credit Organisations Endorsed by the Decision of the Government of the Russian Federation No. 481 of June 23, 2001

Subsidies are provided to organisations of the fuel and power-supply complex in the amount of 2/3 of the suffered expenses to pay the interest, however, not more than 2/3 of the rate of refinancing of the Bank of Russia as of the date of obtaining the credit. The amendments also bring individual provisions of the rules in compliance with the structure of the bodies of state power endorsed by the Decree of the President of the Russian Federation No. 649 of May 20, 2004.

Decision of the Government of the Russian Federation No. 367 of June 10, 2005 on the Keeping of the Foreign Trade Commodity Nomenclatures

The functions of keeping of the Foreign Trade Commodity Nomenclature of the Russian Federation and taking decisions to classify the commodities in compliance with it are vested in the Federal Customs Service of Russia.

Order of the Ministry of Public Health and Social Development of the Russian Federation No. 330 of May 13, 2005 on the List of Positions of Medical and Pharmacy Workers, As Well As Organisations and Institutions, Entitled to Sale Narcotic Drugs and Psychotropic Substances to Natural Persons

The sale of narcotic drugs and psychotropic substances to natural persons is permitted to the head of the apothecary organisation, head of section of the apothecary organisation, their deputies, as well as the pharmacist of the apothecary organisation.

Registered in the Ministry of Justice of the Russian Federation on June 10, 2005. Reg. No. 6711.

Decision of the Government of the Russian Federation No. 372 of June 10, 2005 on the Procedure of Spending and Accounting Work for Resources of the Federal Budget Allocated to Finance the Measured to Extinguish Forest Fires and of Distribution of These Resources

Provides a table of distribution of resources handed over in 2005 to the bodies of state power of the subjects of the Russian Federation in the form of subventions to finance the measures to extinguish forest fires.

Lists the types of forest fire extinguishing works to be financed. Subventions are transferred by the Federal Forestry Agency to personal accounts of the territorial forestry bodies while sending appropriate payment orders to financial bodies of the subjects of the Russian Federation.

Decision of the Government of the Russian Federation No. 368 of June 10, 2005 on the Amendments to the Decision of the Government of the Russian Federation No. 883 of September 4, 1995

The amendments are introduced in view of the increase from January 1, 2005 of the lumpsum child birth allowance from Rbl 4,500 to Rbl 6,000.

State allowances for children are also assigned and paid out to the citizens of the Russian Federation serving in the State Fire Service, institutions and bodies of the criminal execution system, bodies of control over circulation of narcotic drugs and psychotropic substances, customs bodies.

Letter of the Central Bank of Russia No. 86-T of June 10, 2005 on the Drawing up and Submission of Reports of Credit Organisations

Pursuant to the entry into force of the Regulation of the Bank of Russia No. 266-P of December 24, 2004 and the Direction of the Bank of Russia No. 1571-U of April 11, 2005, credit organisations, when drawing up reports and submitting them to the Bank of Russia, are recommended to include in them information on the residues and turnovers on individual balance accounts pertaining to operations using bank cards for the reporting periods until December 31, 2005.

Letter of the Central Bank of Russia No. 85-T of June 10, 2005 on the Application of the Normative Acts of the Bank of Russia Regulating Operations Using Bank Cards

Explains the procedure to fulfil individual requirements of the Regulation of the Bank of Russia No. 266-P of December 24, 2004 and the Direction of the Bank of Russia No. 1571-U of April 11, 2005 pertaining to the transfer of residues of monetary resources from personal accounts opened for operations using bank cards.

Credit organisations are recommended to analyse for compliance with the mentioned requirements the terms of the actual contracts envisaging operations with bank cards and making payments in such operations and introduce changes, if necessary, including the cases when it is envisaged in the contract terms, on the unilateral basis while notifying the client.

Decision of the Government of the Russian Federation No. 377 of June 16, 2005 on the Amendments to the Rules Endorsed by the Decision of the Government of the Russian Federation No. 907 of December 31, 2004

The amendments are introduced to the procedure of paying out of monetary compensations to individual categories of citizens and public servants having been exposed to radiation because of the disaster at the Chernobyl Nuclear Power Station or works to eliminate its consequences. The paying out of the compensation may be arranged not only through organisations of the federal postal communication but also through credit organisations. Besides, citizens and public servants engaged in works in the alienation zone shall get compensation in the amount of Rbl 300.

Regulation on the Procedure of Allocation of Resources of the Normalised Insurance Reserve of the Federal Fund of Obligatory Medical Insurance to Equalise Financial Conditions of Work of the Territorial Funds of Obligatory Medical Insurance to Finance Territorial Programs of Obligatory Medical Insurance (Endorsed by the Federal Fund of Obligatory Medical Insurance on June 2, 2005, No. 5A/7.1)

Defines the procedure of allocation of monetary resources of the normalised insurance reserve of the Fund of Obligatory Medical Insurance to equalise financial conditions of work of the territorial funds of obligatory medical insurance to finance territorial programs of obligatory medical insurance of the subjects of the Russian Federation. Equalisation of financial conditions shall be arranged by granting reserves of the normalised insurance reserve of the budget of the Fund of Obligatory Medical Insurance to the budget of the territorial fund on gratuitous and non-repayable basis to implement tied expenses to finance the territorial program of obligatory medical insurance in the form of subvention.

Registered in the Ministry of Justice of the Russian Federation on June 15, 2005. Reg. No. 6719.

Order of the Ministry of Natural Resources No. 103 of April 21, 2005 on the Endorsement of the Procedure of Organisation and Carrying out of the Forestry Contests

Defines the procedure of preparation and carrying out of the forestry contests to conclude the lease contract for the parts of the forestry fund of the Russian Federation. The parts of the forestry fund are granted for leasing as a result of the forestry contests. The forestry contest is of open type as to the composition of participants. Forestry contests shall be arranged and carried out by the Federal Forestry Agency or the body of executive power of the subject of the Russian Federation within their sphere of reference. A special contest commission is arranged to carry out the contests.

Registered in the Ministry of Justice of the Russian Federation on June 14, 2005. Reg. No. 6713.

Order of the Federal Service of Enforcement in the Sphere of Public Health and Social Development No. 1032-Pr/05 of May 14, 2005 on the Procedure of Publication and Entry into Force of the Acts of the Federal Service of Enforcement in the Sphere of Public Health and Social Development Not Needing State Registration According to the Ministry of Justice of Russia

The acts of the Federal Service of Enforcement in the Sphere of Public Health and Social Development not needing state registration according to the Ministry of Justice of Russia must be published in the Bulletin of Normative and Reference Information on Enforcement in the Sphere of Public Health and Social Development, which is an official source, or on the official Internet site of the Federal Service of Enforcement in the Sphere of Public Health and Social Development: www.roszdravnadzor.ru.

The mentioned acts shall enter into force from the moment of their signing (endorsement) if another time limit or procedure of entry into force is not specified in the acts themselves.

Registered in the Ministry of Justice of the Russian Federation on June 9, 2005. Reg. No. 6709.

Decision of the Government of the Russian Federation No. 380 of June 16, 2005 on the Interim Rates of Import Customs Duties for Certain Types of Technological Equipment for the Light and Textile Industries

Introduces for nine months the rates of import customs duties for individual types of machines used in the light and textile industries. The amount of the import duty makes 0% of the customs cost except for "other" machines where the rate is fixed in the amount of 5% of the customs cost.

The Decision is entered into force two months after the day of its official publication.

Decision of the Government of the Russian Federation No. 379 of June 16, 2005 on the Amendments to the Customs Tariff of the Russian Federation for Individual Types of Vegetables

The Foreign Trade Commodity Nomenclature of the Russian Federation is extended to assign separate codes to white cabbages and red cabbages, carrots, turnips and salad beetroots. The import duty for the mentioned vegetables makes 15% of the customs cost.

The Decision is entered into force two months after the day of its official publication.

Order of the Ministry of Emergency Situations of the Russian Federation No. 362 of April 29, 2005 on the Amendments to the Order of the Ministry of Emergency Situations of Russia No. 141 of March 23, 2001

From January 1, 2005, civil personnel of individual bodies of the Ministry of Emergency Situations of Russia shall get salaries for the occupied positions regardless of the average salary fund provision.

Changes the list of individual bodies of the Ministry of Emergency Situations of Russia fulfilling the tasks in the sphere of defence, law enforcement activities and state security. According to these amendments, the mentioned bodies are divided into three groups according to the labour remuneration of their heads.

Increases amounts of salaries for the occupied position to employees of individual bodies of the Ministry of Emergency Situations of Russia.

Changes the rules of calculation of the length of work permitting to get the monthly percent mark-up for the length of service. The mentioned length of work may include now the work in: the State Fire Service of the Ministry of Internal Affairs of Russia, as well as divisions of the fire services of other ministries and other federal bodies of executive power, divisions of the State Inspection for Small Vessels regardless of the agency subordination.

Registered in the Ministry of Justice of the Russian Federation on June 15, 2005. Reg. No. 6718.

Order of the Ministry of Information Technologies and Communication of the Russian Federation No. 57 of May 19, 2005 on the Invalidation of Some of the Acts of the State Committee of the Russian Federation for Communication and Informatisation and the Ministry of the Russian Federation for Communication and Informatisation Registered in the Ministry of Justice of Russia

Pursuant to the changes in the sphere of reference of the federal bodies of state power pertaining to issue of normative legal acts in the sphere of communication, invalidates individual orders of the State Committee of the Russian Federation for Communication and Informatisation and the Ministry of the Russian Federation for Communication and Informatisation on tariff rates for communication services, licensing, certification, use of financial resources.

Registered in the Ministry of Justice of the Russian Federation on June 14, 2005. Reg. No. 6717.

Federal Law No. 67-FZ of June 18, 2005 on the Ratification of the Agreement between the Russian Federation and the Republic of Kazakhstan on the Development of Cooperation in Efficient Use of the Baykonur Complex

Ratifies the Agreement signed in Astana on January 9, 2004. The Agreement envisages, in particular, prolongation of the lease term of the Baykonur complex till 2050 by the Russian Federation.

Federal Law No. 66-FZ of June 18, 2005 on the Amendment to Article 18.13 of the Code of Administrative Violations of the Russian Federation

Increases administrative fines for the violations pertaining to assistance in employment abroad rendered to Russian citizens. In cases of such violations, the citizens are fined with the amount of 20 to 25 minimum amounts of labour remuneration (earlier, 5 to 10), officials - from 40 to 50 minimum amounts of labour remuneration (earlier, 10 to 20), legal entities - from 400 to 500 (earlier, 100 to 200) minimum amounts of labour remuneration.

Federal Law No. 65-FZ of June 18, 2005 on the Dissolving of Some of the Regional Courts of the Ivanovo Province

Dissolves the Verkhnelandekhovsky, Ilyinsky and the Luksky regional courts of the Ivanovo province. Issues in the sphere of jurisdiction of these courts are handed over to the Pestyakovsky, Teykovsky and the Palekhsky regional courts of the Ivanovo Province.

The Teykovsky City Court of the Ivanovo Province becomes the Teykovsky Regional Court of the Ivanovo Province.

The Federal Law is entered into force one month after the day of its official publication except for individual norms where another time limit for the entry into force is envisaged.

Federal Law No. 64-FZ of June 18, 2005 on the Amendments to Article 346.29 of Part 2 of the Tax Code of the Russian Federation

Permits the subjects of the Russian Federation to specify not only the value of the correction coefficient K2 showing the impact of individual factors on the results of entrepreneurial activities subject to the uniform tax, but also the procedure of its calculation.

The Federal Law is entered into force from January 1, 2006, however, no sooner than one month after the day of its official publication and no sooner than the 1st of the subsequent tax period for the uniform imputed income tax for individual types of activities.

Federal Law No. 63-FZ of June 18, 2005 on the Amendments to Article 346.26 of Part 2 of the Tax Code of the Russian Federation

Envisages that in determination of the types of activities for the uniform imputed income tax, the subjects of the Russian Federation may choose the household services classified under the All-Russia Classifier of Services to the Population where the given tax regime applies.

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

Federal Law No. 62-FZ of June 18, 2005 on the Amendment to Article 363 of Part 2 of the Tax Code of the Russian Federation

Item 3 of Article 363 of the Tax Code of the Russian Federation specifies the time limit for handing in to natural persons of the tax notifications to pay the transport tax no later than June 1 of the year of the tax period. However, according to Article 52 of the Tax Code of the Russian Federation, the tax notification is sent to the taxpayer no later than 30 days in advance of the time of payment. Since the time limit for payment of the transport tax is specified by the subjects of the Russian Federation, the time limit for calculation of the mentioned tax for the tax bodies was significantly reduced.

According to the new wording of Item 3 of Article 363, the mentioned natural person taxpayers shall pay the transport tax on the basis of the tax notification sent by the tax body.

The Federal Law is entered into force from January 1, 2006, however, no sooner than one month after the day of its official publication.

Federal Law No. 61-FZ of June 18, 2005 on the Amendments to the Federal Law on the Securities Market, Federal Law on the Protection of Rights and Legal Interests of Investors at the Securities Market and the Federal Law on the Central Bank of the Russian Federation (Bank of Russia)

If the issue of emission securities is not subject to the state registration, an identification number is assigned to it. The identification number is implied to be a digital (alphabetic, character) code identifying the particular issue (additional issue) of emission securities not subject to the state registration. The identification number of the issue (additional issue) of the bonds of the Bank of Russia is assigned by the Bank of Russia according to the procedure specified by the federal body of executive power in charge of the securities market.

The Law specifies the particulars of issue and circulation of the bonds of the Bank of Russia. Invalidates the provision stating that the mentioned particulars are specified by the Government of the Russian Federation. Specifies, in particular, that the issue of the bonds of the Bank of Russia is made without the state registration of the issue (additional issue) of such bonds, without the prospectus and without the state registration of the report of the results of issue (additional issue) of the bonds.

Federal Law No. 60-FZ of June 18, 2005 on the Amendments to Article 3 of the Federal Law on the Entry into Force of the Land Code of the Russian Federation and to Article 3 of the Federal Law on the Privatisation of the State Municipal Property

Land plots available in the state or municipal property housing the buildings and structures owned as of the day of entry into force of the Land Code of the Russian Federation by all-Russia public organisations of invalids and organisations where the sole founders are all-Russia public organisations of invalids are granted as property to the mentioned organisations free of charge.

The Federal Law is entered into force from the day of its official publication.

Decision of the Government of the Russian Federation No. 383 of June 17, 2005 on the Endorsement of the Typical Code of Professional Ethics of the Management Companies, Specialised Depositary, Brokers Engaged in Activities Pertaining to Generation and Investing of Savings for the Housing Support of Servicemen and the Rules of Coordination of the Codes of Professional Ethics of the Management Companies, Specialised Depositary, Brokers Engaged in Activities Pertaining to Generation and Investing of Savings for the Housing Support of Servicemen with the Federal Service for Financial Markets

The typical code defines fundamentals of professional ethics of officials and employees of the management companies, specialised depositaries, brokers intended to protect the rights and legal interests of owners of savings for the housing support of servicemen and participants of the accumulated mortgage system. The typical code includes rules and procedures obligatory for observation by officials and employees of the organisation, as well as the sanctions to violators for the failure to execute them.

Specifies the procedure of coordination of the typical codes with the Federal Service for Financial Markets of Russia.

Letter of the Ministry of Finance of the Russian Federation No. 03-03-02-04/1-138 of June 8, 2005

The provision specifying the duty of the taxpayer using the simplified system of taxation to pay the minimum tax if the amount of the uniform tax calculated as a result of the tax period according to the common procedure appears to be less than the amount of the minimum tax calculated for the same period applies also to the taxpayer having lost the right for the simplified system of taxation during the calendar year.

Tax declarations for the appropriate tax period are submitted, and the minimum tax is paid, upon expiry of the reported period where the taxpayer lost the right for the simplified system of taxation, however, no later than the time limit specified for submission of the tax declarations and transfer of the quarterly advance payments for the uniform tax for this reporting period.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-06-05-04/156 of June 7, 2005 on the Procedure of Calculation of the Property Tax for the Fixed Assets Available on the Balance of a Separate Division

Explains the issue of calculation of the taxable base for the property tax from organisations when the object of fixed assets of the division is in the place of location of the parent organisation.

The movable property is taken into account in the determination of the taxable base of the separate division with a separate balance, and the tax is paid at the place of location of this division. The immovable property is taken into account in the determination of the taxable base of the organisation, and the tax is paid at the place of location of the organisation.

Decision of the Government of the Russian Federation No. 387 of June 20, 2005 on the Amendments to the Procedure of Paying out of the Monthly Monetary Compensation in Reimbursement of the Damage to Health of Citizens Pursuant to Radiation Exposure because of the Chernobyl Disaster or Carrying out Works to Eliminate the Consequences of the Disaster at the Chernobyl Nuclear Power Station

The paying out of the compensation in case of death of the invalid of the Chernobyl disaster is made only to his dependent family members with disabilities.

Decision of the Government of the Russian Federation No. 385 of June 20, 2005 on the Federal Fire Service

The Federal Fire Service is an integral part of the State Fire Service and forms part of the system of the Ministry of Emergency Situations of Russia. The Decision lists management bodies, divisions and institutions used to implement the activities of the Federal Fire Service. Defines the main tasks, functions and rights of the Federal Fire Service.

Order of the Federal Service for Financial Markets No. 05-19/pz-n of May 18, 2005 on the Figures and Normatives of Sufficiency of Own Resources (Capital) of the Management Companies and Specialised Depositaries Being the Subjects of Relations in Obligatory Pension Insurance Having Concluded Contracts with Non-State Pension Funds Pertaining to Volumes of Serviced Assets

Specifies the rules of calculation of the figure of sufficiency of own resources (capital) of the management company providing trust control for the resources of accumulated pensions on the basis of the contract with non-state pension funds being insurers in obligatory pension insurance pertaining to the volume of serviced assets. The normative of sufficiency of own resources of the management company makes 0.0001.

Also specifies the rules of calculation of the figure of sufficiency of own resources (capital) of the specialised depositary rendering services to non-state pension funds being insurers in obligatory pension insurance pertaining to volumes of serviced assets. The normative of sufficiency of own resources of the specialised depositary makes 0.0001.

Registered in the Ministry of Justice of the Russian Federation on June 17, 2005. Reg. No. 6722.

Decision of the Government of the Russian Federation No. 391 of June 21, 2005 on the Endorsement of the Rules of Granting Subsidies from the Federal Budget in 2005 for the Capital Repair of Hydrotechnical Structures Owned by the Subjects of the Russian Federation

Defines the procedure of granting subsidies form the federal budget in 2005 to the budgets of the subjects of the Russian Federation for capital repair of hydrotechnical structures owned by the subjects of the Russian Federation. Provides distribution of subsidies by the subjects of the Russian Federation. The subsidies are granted on certain conditions. In particular, distribution of subsidies by the objects must be coordinated with the Federal Agency of Water Resources followed by subsequent submission of reports of their use.

The priority procedure of allocation of subsidies applies to capital repair of objects in emergency state where incidents may cause an emergency situation, and handed over objects where the works must be terminated in 2005.

Decision of the Government of the Russian Federation No. 390 of June 21, 2005 on the Endorsement of the Rate of the Import Customs Duty for Electric Power

Endorses the rate of the import customs duty for electric power (code according to the Foreign Trade Commodity Nomenclature of Russia 2716 00 000 0) in the amount equal to zero.

The Decision is entered into force from July 27, 2005.

Decision of the Presidium of the Higher Arbitration Court of the Russian Federation No. 391/05 of May 17, 2005

A check carried out by the tax inspection revealed a fact of sale of commodity for Rbl 180 without the use of cash register by the seller. An administrative fine was imposed on the applicant in the amount of Rbl 30,000.

The plenum of the Higher Arbitration Court of the Russian Federation explains that the small amount of sale is no evidence of the low significance of the violation envisaged in Article 14.5 of the Code of Administrative Violations of the Russian Federation for the failure to use cash registers. Administrative violation in the form of the failure to use cash registers in cash payments jeopardises the established procedure of public relations in the sphere of trade and finance, the rules of the state licensing system. Therefore, the amount of the fine must not depend on the amount of the violation.

Order of the Ministry of Information Technologies and Communication of the Russian Federation No. 65 of June 7, 2005 on the Endorsement of the Form of the Application for Obligatory Certification of the Means of Communication

Provides the form of the application for obligatory certification of the means of communication with a request to carry out the certification for compliance with the specified requirements according to the rules of organisation and carrying out works in obligatory confirmation of compliance of the means of communication. Provides a list of additional materials to be submitted together with the mentioned application.

Registered in the Ministry of Justice of the Russian Federation on June 21, 2005. Reg. No. 6732.

Order of the Ministry of Information Technologies and Communication of the Russian Federation No. 66 of June 7, 2005 on the Endorsement of the Form of Certificate of Compliance

Endorses the form of the certificate of compliance certifying that the means of communication complies with specified requirements. Provides a description of the blank certificate of compliance and its fields.

Registered in the Ministry of Justice of the Russian Federation on June 21, 2005. Reg. No. 6731.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-02-04/1-138 of June 8, 2005

Provision specifying the duty of the taxpayer using the simplified system of taxation to pay the minimum tax if the amount of the uniform tax at the end of the tax period calculated according to the common procedure appears to be less than the amount of the minimum tax calculated for the same period applies also to the taxpayer having lost the right for the simplified system of taxation during the calendar year.

Tax declarations for the appropriate tax period are submitted, and the minimum tax is paid, upon expiry of the reported period where the taxpayer lost the right for the simplified system of taxation, however, no later than the time limit specified for submission of the tax declarations and transfer of the quarterly advance payments for the uniform tax for this reporting period.

Decision of the Government of the Russian Federation No. 395 of June 22, 2005 on the Interim Rates of Import Customs Duties for Some Types of Technological Equipment for the Light and Textile Industries

Introduces for nine months the rates of import customs duties for individual types of machines used in the light and textile industries. The amount of the import duty makes 0% of the customs cost, except for "other" machines where the rate is fixed in the amount of 5% of the customs cost.

The Decision is entered into force from July 15, 2005.

Decision of the Government of the Russian Federation No. 394 of June 22, 2005 on the Endorsement of the Rates of Export Customs Duties for Secondary Aluminium Alloys Exported from the Territory of the Russian Federation outside the Member-States of the Customs Union Agreements

The export rate for the secondary aluminium alloys in ingots or in liquid state (codes according to the Foreign Trade Commodity Nomenclature of the Russian Federation 7601 20 910 0, 7601 20 990 0) is fixed in the amount of 3% of the customs cost (earlier, 5% of the customs cost).

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

Decision of the Government of the Russian Federation No. 393 of June 22, 2005 on the Endorsement of the Rates of Import Customs Duties for Some Types of Digital Audio and Video Equipment

The rates of the import customs duties for some types of digital audio and video equipment earlier introduced for nine months by the Decision of the Government of the Russian Federation No. 469 of September 10, 2004 are prolonged on unlimited basis.

The Decision is entered into force from July 15, 2005.

Decision of the Government of the Russian Federation No. 392 of June 22, 2005 on the Endorsement of the Rates of Import Customs Duties for Stomic-Use Devices

The rates of import customs duties for stomic-use devices (3926 90 910 1, 3926 90 910 9, 3926 90 990 2, 3926 90 990 8) earlier introduced for nine months by the Decision of the Government of the Russian Federation No. 475 of September 10, 2004 are prolonged on unlimited basis.

The Decision is entered into force from July 15, 2005.

Letter of the Federal Tax Service No. KB-6-24/420@ of May 20, 2005 on the Taxpayer Accounts in Liquidated Banks

Explains the procedure of recording in information resources of the tax bodies of information on taxpayer accounts in liquidated banks.

If the bank account contract is not dissolved at the moment of liquidation of the credit organisation, and information of the closing of the settlement ( current) account is not sent to the body in charge of registration (tax body) at the place of location of the legal entity (place of residence of independent entrepreneur), there no reasons to enter the record of the closing of the account in the Uniform State Register of Legal Entities, Uniform State Register of Independent Entrepreneurs, as well as other databases of the tax bodies.

Decision of the Government of the Russian Federation No. 396 of June 23, 2005 on the Amendments to the Procedure of Providing Information on the Federally Owned Forestry Fund to Citizens and Legal Entities

The payment for the information on the forestry fund must be transferred to the federal budget. The list of information on the forestry fund provided to various categories of users free of charge and for a fee is endorsed by the Ministry of Natural Resources of Russia.

Order of the Government of the Russian Federation No. 817-r of June 17, 2005

Finds it expedient to terminate participation of the federal state unitary enterprises, federally owned enterprises and federal state institutions in the registered capitals of organisations engaged in activities at the market of financial services except for credit organisations.

Stocks, shares and contributions in the registered capitals of financial organisations available in economic and operative control of the mentioned enterprises and institutions must be handed over in the property of the Russian Federation.

The rights of the stock-holder (participant) on behalf of the Russian Federation are vested in the Federal Agency of State Property Management.

Letter of the Ministry of Finance of the Russian Federation No. 03-07-03-02/9 of February 24, 2005

The payers of the water tax are recognised to be organisations and natural persons directly engaged in the use of water objects while applying structures, technical means or devices on the basis of the license for water use. Natural persons other than those engaged in entrepreneurial activities pertaining to the use of water objects and requiring a license are not being the payers of the water tax.

Decision of the Government of the Russian Federation No. 401 of June 27, 2005 on the Optimisation of the System of Trade Representations of the Russian Federation in Foreign States

Endorses the Regulation on the trade representation of the Russian Federation in a foreign state. The trade representation is a state body safeguarding foreign trade interests of the Russian Federation in the country of stay. The trade representation is an integral part of the diplomatic representation of the Russian Federation in the country of stay and operates under the direct political guidance of the ambassador of the Russian Federation in this country. Decision to institute, reorganise or dissolve trade representations and/or its divisions in the country of stay shall be taken by the Government of the Russian Federation in compliance with international treaties of the Russian Federation.

General guidance of the work of trade representations is vested in the Ministry of Economic Development of the Russian Federation.

The Decision lists foreign states where new trade representations are introduced in 2005-2006, as well as the states where trade representations of the Russian Federation and offices of trade councillors of the embassies of the Russian Federation must be liquidated from January 1, 2006. Provides the list of states where offices of trade councillors of the embassies of the Russian Federation are to be converted into the Russian trade representations.

Order of the Ministry of Justice of the Russian Federation No. 82 of June 9, 2005 on the Endorsement of the Instruction on the Particulars of the State Registration of the Contracts of Participation in Shared Construction, the Rights, Restrictions (Encumbrances) of the Rights for the Objects of Immovable Property Pertaining to Shared Construction of the Objects of Immovable Property

Defines the particulars of the state registration of the contracts of shared construction, the rights, restrictions (encumbrances) of the rights for the objects of immovable property pertaining to shared construction of the objects of immovable property, including the entry of records in the Joint State Register of the Rights for Immovable Property and Transactions with It.

The state registration of the contracts of participation in the shared construction needs additional submission of the documents describing the object of shared construction indicating its location on the diagram of the created object of immovable property and expected area of the object of shared construction.

Additionally submitted by the construction party for the state registration of the contract concluded by the construction party with the first participant of the shared construction are: permission for the construction project, design declaration, diagram of the created object of immovable property indicating its location and the quantity of dwelling and non-dwelling space in the created object of immovable property and expected area of each of the mentioned rooms.

Registered in the Ministry of Justice of the Russian Federation on June 23, 2005. Reg. No. 6749.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-05-01-04/198 of June 22, 20

Explains the procedure of application of Item 7 of Article 226 of the Tax Code of the Russian Federation stating that the tax agents possessing separate divisions must transfer calculated and collected amounts of the income tax from natural persons both at the place of its location and at the place of location of each of its separate divisions. The given procedure applies regardless of the place of residence of natural persons, as well as of whether the works are carried out under labour or civil contracts.

If the civil contract has been concluded by the natural person with a branch operating on behalf of the organisation, the income tax from such natural person must be transferred by the parent organisation to the budget at the place of location of the branch, with appropriate information being submitted at the place of registration of the parent organisation and the place of residence of the natural person.

If the civil contract has been concluded by the natural person with the parent organisation, the income tax from such natural person must be transferred to the budget at the place of location of the parent organisation, with appropriate information being submitted at the place of residence of the natural person.

Decision of the Government of the Russian Federation No. 402 of June 27, 2005 on the Endorsement of the Rules of Reimbursement from the Federal Budget of the Part of Expenses to Pay Interest under Credits Obtained in 2005 by Organisations of the Coal Industry in Russian Credit Organisations to Implement Investment Projects

Specifies the procedure and terms of reimbursement from the federal budget of the part of expenses to pay interest under credits obtained by organisations of the coal industry in Russian banks in 2005 for up to three years. The subsidies are provided on the monthly basis by the Federal Agency for Power Supplies to organisations of the coal industry that obtained credits in banks to implement investment projects pertaining to technical modernisation, reconstruction and maintenance of production capacities of operating coal extracting organisations, purchase of equipment and instruments providing for the safety of mining works, safe operation of control and emergency warning systems. The subsidies are provided proceeding from 2/3 of the expenses made by organisations of the coal industry to pay the interest, however, not more than 2/3 of the rate of refinancing as of the date of obtaining the credit.

Information Letter of the Central Bank of Russia No. 32 of June 15, 2005 Summary of the Practice of Application of the Normative Acts of the Bank of Russia on Currency Regulation and Currency Control

Foreign currencies received from non-residents on currency accounts of lawyer structures being resident legal entities as labour remuneration of lawyers for the rendered legal services is not subject to obligatory sale at the internal currency market of the Russian Federation since they form lawyer personal incomes.

When currency operations are carried out between a lawyer structure being a resident legal entity and a non-resident to make payments for the legal service rendered by a resident lawyer, transaction certificate is not being drawn up.

Amendment to the Regulation on the Committee of Banking Enforcement of the Bank of Russia Endorsed by the Decision of the Board of Directors of the Bank of Russia of August 10, 2004 (Session Protocol No. 21) (Endorsed by the Decision of the Board of Directors of the Central Bank of Russia on June 14, 2005, Protocol No. 10)

Specifies that the Committee of Banking Enforcement shall provide for the analysis of activities of credit organisations (bank groups) to reveal situations jeopardising legal interests of their depositors and creditors and stability of the bank system of the Russian Federation. If such situations occur, the Committee is entitled to restrict individual operations carried out by credit organisations for up to six months, collect a fine in the amount of 0.1% of the minimum amount of the registered capital and demand to eliminate the revealed violations. Moreover, in such cases, the Committee may request the Board of Directors of the Bank of Russia to implement measures of financial rehabilitation of credit organisations.

The amendment is entered into force ten days after the day of its official publication in the Herald of the Bank of Russia.

Letter of the Federal Tax Service No. 22-3-11/1115 of June 20, 2005 on the Use of Cash Registers

When examining the issues of use (failure to use) of cash registers in payments under loans, advance payments, payments between commissioners and clients, agents and principals proceeding from the terms of their concluded contracts, one should determine in each particular case if the receipt of these amounts pertains to the sale of commodities, carrying out works or rendering services.

Thus, payments under loans (interest-free loans) not being trade operations or a variety of rendered services do not require the use of cash registers. A commissioner selling for cash commodities owned by the client is simultaneously a seller under a purchase and sale contract concluded with the buyer in his own name (including the contract of retail purchase and sale). Therefore, in such cases, he must use cash registers. If the cash is handed over to the client or settlor, such operations may be registered using a pay-in cash slip, since in the given case operations of sale of commodities, carrying out works or rendering services are not present.