Monitoring of the Federal Legislation dated 8.12.2005

Federal Law No. 158-FZ of December 6, 2005 on the Amendment to Article 241 of Part 2 of the Tax Code of the Russian Federation

From January 1, 2006, the rate of the uniform social tax due for transfer to the Social Insurance Fund is reduced by 0.3%, and to the Fund of Obligatory Medical Insurance is increased by the same value. Thus, the uniform social tax transferred to the Social Insurance Fund is reduced from 3.2% to 2.9%, and to the Fund of Obligatory Medical Insurance is increased from 0.8% to 1.1%. Such redistribution of financial resources is intended to cover the shortage of resources of the Fund of Obligatory Medical Insurance.

The Federal Law is entered into force form January 1, 2006, however, no sooner than one month after the day of its official publication. The Federal Law shall apply to legal relations emerging from January 1, 2006.

Decision of the Government of the Russian Federation No. 727 of December 5, 2005 on the Change of the Amount Allocated to Cover the Set of Social Services (Social Service) Provided to Citizens

From January 1, 2006, resources allocated for the coverage of the set of social services provided to citizens is fixed in the amount of Rbl 477 (earlier, Rbl 450) per month per citizen. Out of them: Rbl 424 - for the additional free medical aid including supplies of necessary medicines to doctor (feldsher) prescriptions and accommodations for sanatorium and resort treatment in the presence of medical indications; Rbl 53 - for the coverage of free travel on suburban railways, as well as on intercity transport to the place of treatment and back.

Decision of the Government of the Russian Federation No. 711 of December 1, 2005 on the Amendments to the Decision of the Government of the Russian Federation No. 587 of August 14, 1992

To ensure aviation safety and protection of international airports against terrorist acts and other illegal offences, the list of objects enjoying state security measures shall include now international airports. International airports must be guarded by divisions of non-agency guard services of the bodies of internal affairs of the Russian Federation.

Regulation of the Central Bank of Russia No. 279-P of November 9, 2005 on the Interim Administration for the Management of the Credit Organisation

Introduces a new procedure of assigning, organisation, implementation and termination of activities of the interim administration for the management of the credit organisation. Defines the procedure of generation of the creditor claims register by the interim administration and the register of bank liabilities to depositors in cases of bank participation in the system of obligatory insurance of deposits of natural persons and in insured cases, as well as if the credit organisation is not participating in the system of obligatory insurance of deposits.

Invalidates the Regulation of the Bank of Russia No. 241-P of November 26, 2003 on the interim administration for the management of the credit organisation.

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 December 6, 2005. Reg. No. 7239.

Order of the Federal Antimonopoly Service No. 224 of September 29, 2005 on the Endorsement of the Rules of Examination of Applications Challenging the Refusal to Provide Information Envisaged in the Standards of Disclosing of Information by the Subjects of the Wholesale and Retail Trade Markets of Electric Power

Defines organisational and legal fundamentals of processing of applications challenging the refusal to provide information envisaged in the Standards of Disclosing of Information by the Subjects of the Wholesale and Retail Trade Markets of Electric Power by the Federal Antimonopoly Service and its territorial bodies.

Specifies that subjects of electric power markets must keep disclosed information for 3 years.

Registered in the Ministry of Justice of the Russian Federation on December 2, 2005. Reg. No. 7226.

Order of the Ministry of Finance of the Russian Federation No. 133n of November 7, 2005 on the Access to Information on Activities of the Ministry of Finance of the Russian Federation

Defines the rules of providing access to citizens and organisations to information on activities of the Ministry of Finance of Russia, the rules of providing to mass media information on activities of the mentioned ministry, as well as the procedure of generation of information on the measures involving the managing bodies of the Ministry of Finance of Russia.

Letter of the Federal Tax Service No. MM-6-03/988@ of November 24, 2005 on the Particulars of Application of the Value Added Tax When VAT Payers Switch Over to the Simplified System of Taxation and the Uniform Imputed Income Tax and When Switching Over to the Common Taxation Regime

Explains the procedure of calculation, transfer and acceptance for exemption of the value added tax when switching over to the uniform imputed income tax and the simplified system of taxation and reversing to the common regime.

If advance payments have been received before the switchover to the special tax regime for the sale of commodities (works, services) occurring after the switchover, the right for the VAT exemption calculated for the amount of advance payment does not apply.

However, if the appropriate contract is changed, and VAT amounts are returned to the buyers, amounts of tax calculated by the sellers (being VAT payers) are accepted for exemption in the last tax period before the switchover to the simplified system of taxation or the uniform tax.

When VAT payers switch over to special tax regimes, they must restore VAT amounts earlier accepted for exemption for the main resources and assets. The taxpayer must provide separate record keeping for the restored amount of tax for material resources for operations subject to VAT unused because of the switchover.