Windfall tax for major companies to be introduced in Russia

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Daily Monitoring of the Legislation

Monitoring of the Federal Legislation dated 18.07.2005

Federal Law No. 85-FZ of July 15, 2005 on the Amendments to Article 44 of the Federal Law on the Prosecutor's Office of the Russian Federation and on Invalidation of Some of the Legislative Acts of the Russian Federation

Changes the amount and procedure of assigning of the salaries for the occupied position to employees of the prosecutor's office. The salaries for the occupied position to employees of the prosecutor's office are assigned by the Government of the Russian Federation at the presentation of the Prosecutor General as a percent of the salary for the occupied position of the First Deputy Prosecutor General, which makes 80% of the salary for the occupied position of the Chairman of the Supreme Court of the Russian Federation. Earlier, the salaries for the occupied position were assigned to the employees of the prosecutor's office by the Government of the Russian Federation as a percent of the salary for the occupied position of the Prosecutor General of the Russian Federation, which made 98% of the salary for the occupied position of the Chairman of the Supreme Court of the Russian Federation. The monetary remuneration to the Prosecutor General of the Russian Federation is assigned by the President of the Russian Fed eration.

The Law provides a scale of the monthly mark-ups for the class rating of the employees of the prosecutor's office: the maximum amount is fixed for the actual state councillor of justice - 30% of the salary for the occupied position, the minimum - for the junior lawyer - 15% of the salary for the occupied position.

Also provides a scale of the monthly mark-ups for the length of service. For example, with the length of service making 5 to 10 years, the mark-up makes 35% to the salary for the occupied position and the mark-up for the class rating.

The new amounts of the salaries for the occupied position may not be lower than the earlier specified amounts of the salaries for the occupied position of the employees of the prosecutor's office.

Decision of the Government of the Russian Federation No. 422 of July 11, 2005 on the State Program "Patriotic Education of the Citizens of the Russian Federation for the Years 2006-2010"

The program defines the contents and main directions of development of the system of patriotic education of the citizens of the Russian Federation and is aimed at further development of the patriotic awareness of the Russian citizens as an important value - one of the fundamental elements of the moral unity of the society. The program is a complex of normative and legal, organisational, scientific and methodology measures intended to solve the main tasks in the sphere of patriotic education.

The main goal of the program is improvement of the system of patriotic education providing for the development of Russia as a free, democratic state, building of a high patriotic consciousness with the citizens of the Russian Federation, loyalty to the fatherland, preparedness to fulfil constitutional duties.

Approximate total volume of financing of the program in 2006-2010 will make Rbl 497.8 million, including Rbl 378.05 million at the expense of resources of the federal budget, Rbl 119.75 million at the expense of the extra-budgetary sources allocated by creative unions, cultural organisations, sports, scientific and other organisations involved in the patriotic education, as well as resources of legal entities and natural persons received as a free aid, patronage and sponsorship.

Order of the Central Bank of Russia No. OD-440 of July 15, 2005 on the Procedure of Informing of the Heads of the Bank of Russia (Heads of the Territorial Institutions of the Bank of Russia) of the Oral Requests of Outside Parties to Employees of the Bank of Russia Pertaining to Credit Organisations

Employees of the Bank of Russia, in cases of oral requests of outside parties to present restricted-access information or requests aimed to form certain decisions pertaining to credit organisations (if the mentioned persons are not entitled to get such information), are ordered to inform of it their bosses in writing on the day of receiving of the request.

The mentioned employees must also notify the party having appealed with respective request of the need to inform of it their bosses.

Letter of the Ministry of Finance of the Russian Federation No. 03-03-02/18 of July 6, 2005 on the Procedure of Submission of the Declaration for the Profit Tax from Organisations Pursuant to the Adoption of the Federal Law No. 58-FZ of June 6, 2005

Provisions of the Federal Law No. 58-FZ of June 6, 2005 applying to legal relations emerging from January 1, 2005 must be taken into account when drawing up the declaration for the profit tax from organisations for the 7 months of 2005 by taxpayers calculating the monthly advance payments proceeding from the actual profit received by them, and when drawing up the declarations for the 9 months of 2005 - by the rest of taxpayers. Simultaneously with submission of the mentioned declarations, the taxpayers must present to the tax bodies appropriate orders of the head introducing appropriate amendments to the accounting policy for the purposes of taxation in view of the changing of the legislation.

If there are arrears in the profit tax arising form the mentioned changes pertaining to the previous tax periods and expired reporting periods of 2005, the penalties shall not accrue.

Letter of the Ministry of Finance of the Russian Federation No. 03-03-02/16 of July 6, 2005 on the Procedure of Determination of the Share of Profit Pertaining to Separate Divisions Pursuant to the Adoption of the Federal Law No. 58-FZ of June 6, 2005

According to the amendments of June 6, 2005, specific weight of the average listed number of employees and specific weight of the residual cost of amortised property are determined proceeding form the actual figures of the average listed number of employees (labour remuneration expenses) and the residual cost of fixed assets of organisations and their separate divisions for the reporting (tax) period.

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