Monitoring of the Federal Legislation dated 20.12.2005

Federal Law No. 166-FZ of December 19, 2005 on the Ratification of the Agreement between the Russian Federation and the Kingdom of Spain on Seafaring

Ratifies the Agreement signed in Moscow on May 22, 2001. The Agreement is aimed at development of cooperation in the sphere of seafaring between the two countries, their competent bodies, shipping companies and enterprises.

Federal Law No. 165-FZ of December 19, 2005 on the Ratification of the Treaty on Cooperation in Safeguarding the Outer Borders of the Member-States of the Eurasia Economic Community

Ratifies the Treaty signed in Moscow on February 21, 2003. The ratification of the Treaty will permit to work out the fundamentals of the normative and legal basis in the sphere of protection of the outer borders of the member-states of the Eurasia Economic Community and enhance cooperation among the border guard agencies of these states.

Federal Law No. 164-FZ of December 19, 2005 on the Ratification of the Additional Agreement to the Agreement between the Government of the Russian Federation and the Government of the United Kingdom of Great Britain and Northern Ireland on Cooperation in the Sphere of Peaceful Use of Nuclear Power of September 3, 1996

Ratifies an Additional Agreement singed in London on June 26, 2003. The Agreement envisages a financial and technical aid provided by the British side on gratuitous basis to utilise out-of-service Russian nuclear submarines, as well as to handle spent nuclear fuel and nuclear waste.

Federal Law No. 163-FZ of December 19, 2005 on the Amendment to Article 7 of the Federal Law on the Veterans

The Federal Law No. 122-FZ of August 22, 2004 amended the Federal Law on the veterans. Article 22, in particular, specified that measures of social support of the labour veterans shall be defined in the laws and other normative legal acts of the subjects of the Russian Federation. Provisions pertaining to the authority of the President of the Russian Federation in defining the procedure and terms of awarding the title of the Veteran of Labour have been omitted.

In this connection, the Federal Law envisages that the procedure and terms of awarding the title of the Veteran of Labour shall be defined in the laws and other normative legal acts of the subjects of the Russian Federation.

Federal Law No. 162-FZ of December 19, 2005 on the Amendments to Article 5 of the Federal Law on the Special Economic Zone in the Magadan Province

Prolongs the tax exemption regime introduced for participants of the special economic zone in the Magadan Province. According to the mentioned regime, participants of the special economic zone shall be exempted from taxes due to the federal budget (except for the deductions to the Pension Fund of Russia and the Social Insurance Fund).

Federal Law is entered into force form December 31, 2005.

Federal Law No. 161-FZ of December 19, 2005 on the Amendments to the Criminal Code of the Russian Federation and the Code of Administrative Violations of the Russian Federation

The amendments refine the provisions pertaining to deliberate and fraudulent bankruptcy, as well as illegal actions in cases of bankruptcy.

Article 195 of the Criminal Code is extended to include the provision specifying responsibility for illegal disturbance of activities of the bankruptcy commissioner or the interim administration of the credit organisation.

The Federal Law increases from 2 to 3 years the maximum period of imprisonment for illegal actions in bankruptcy, as well as envisages an increased amount of fine imposed for the deliberate bankruptcy.

Federal Law No. 160-FZ of December 19, 2005 on the Ratification of the Convention of the Council of Europe for the Protection of Individuals with Regard to Automatic Processing of Personal Data

Ratifies the Convention of the Council of Europe for the protection of individuals with regard to automatic processing of personal data of January 28, 1981 with amendments approved by the Committee of Ministers of the Council of Europe on June 15, 1999 signed on behalf of the Russian Federation in Strasburg on November 7, 2001 with a number of reservations. The Convention is aimed at safeguarding the rights and main freedoms of natural persons, including the privacy rights, for the cases of automatic processing of personal information regardless of the nationality, place of residence and other circumstances. The Convention contains the norms regulating trans-border transfer of personal information.

The Convention defines the principles of collection, processing, storage and use of personal information, as well as the measures of protection of the pertinent persons against illegal use of the appropriate information.

Federal Law No. 159-FZ of December 19, 2005 on the Amendments to the Budget Code of the Russian Federation

Amends Articles 46, 50, 51, 53, 56, 57, 59, 62 and 64 of the Budget Code of the Russian Federation pertaining to the refining of the procedure of distribution of incomes among the federal budget, budgets of the subjects of the Russian Federation and local budgets pursuant to introduction of changes to the Tax Code of the Russian Federation in 2005 entering into force from January 1, 2006. The amendments, in particular, take account of the introduction of excise duties for straight-run gasoline, abandoning of the tax credit, removal of the restriction in the form of the limits of granted respites (extension schedules) in the payment of taxes.

The local budgets where the fines will be transferred shall include also the budgets of urban districts and municipal regions, cites of federal significance of Moscow and St.Petersburg.

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

Decision of the Government of the Russian Federation No. 772 of December 17, 2005 on the Interim Rates of Import Customs Duties for Individual Types of Gas-Discharge Lamps Except for Ultraviolet Lamps

Sodium and metal-halide lamps (codes according to the Foreign Trade Commodity Nomenclature of the Russian Federation 8539 32 500 0 and 8539 32 900 0) shall be imported using the rate of 15% of the customs cost, however, not less than EUR 0.35 a piece. The given rate is introduced for 9 months. Earlier, the import rate for the mentioned commodities amounted to 15% 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. 771 of December 17, 2005 on the Interim Rate of the Import Customs Duty for Cocoa Beans, Whole or Broken, Raw or Roasted

Introduces for 9 months the import customs duty for cocoa beans, whole or broken, raw or roasted (code according to the Foreign Trade Commodity Nomenclature of the Russian Federation 1801 00 000 0), in the amount equal to zero (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. 765 of December 14, 2005 on the Amendments to the Decisions of the Government of the Russian Federation on the Burying of the Killed (Deceased) Servicemen and Persons of Similar Status

From Rbl 6,000 to Rbl 8,000 increases the amount of expenses for the burying of the killed (deceased) servicemen, employees of the bodies of internal affairs, institutions and bodies of the criminal execution system, State Fire Service, bodies in charge of control over circulation of narcotic drugs and psychotropic substances, federal bodies of the tax police and customs bodies, citizens called up to the training exercises and persons dismissed from the military service. For the cities of Moscow and St.Petersburg, the amount is increased to Rbl 10,000.

The payment for the services of installation of tombstones at the expense of the resources of the federal bodies of executive power where the killed (deceased) served must not be greater than 20% of the specified norms of expenses.

Also increases the amount of the allowance for the burying of pensioners out of servicemen, non-rated men and officers of the bodies of internal affairs, State Fire Service, institutions and bodies of the criminal execution system and members of their families - from two to three monthly pensions (part of the pension) received by the pensioner as of the day of the death.

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

Decision of the Government of the Russian Federation No. 761 of December 14, 2005 on the Subsidies for the Dwelling Space and Communal Services

The subsidies shall be granted to citizens if their expenses for the dwelling space and communal services are greater than the approximate maximum permissible share of expenses of citizens for the dwelling space and communal services in the total family incomes. For the families with per capita incomes below the specified cost of living, the maximum permissible share of expenses is reduced according to the adjustment coefficient equal to the ratio of the family per capita incomes to the cost of living.

One subsidy is granted for one family. The amount of the subsidy is calculated on the monthly basis and depends on the amount of expenses for the dwelling space and communal services calculated from the regional standards. The subsidy is granted for 6 months.

The Decision lists the documents submitted together with the application for the subsidy, specifies the procedure of determination of the composition of the applicant family. Decisions granting the subsidies shall be taken by the bodies of local government or the municipal institutions authorised by them.

Defines the particulars of granting of subsidies to employees undergoing military service in the federal bodies of executive power, where the law envisages military service, and citizens living in closed military residential settlements.

Specifies the grounds of suspension or, even, termination of the subsidy. In particular, the granting of the subsidy may be suspended in cases of failure to transfer current payments for the dwelling space and/or communal services for two months by the recipient of the subsidy.

The earlier granted subsidies may not be recalculated during the whole period of their effect except for the cases when the amounts of subsidies are increased.

Decision of the Government of the Russian Federation No. 760 of December 13, 2005 on the Amendments to Some of the Decisions of the Government of the Russian Federation on the State Registration of Legal Entities and Independent Entrepreneurs and the Keeping of the Joint State Register of Taxpayers

Provides a new wording for the Forms R11001 "Application for the State Registration of the Legal Entity at Creation", R12001 "Application for the State Registration of the Legal Entity Created through Reorganisation", R13001 "Application for the State Registration of the Changes in the Constituent Documents of the Legal Entity", R14001 "Application for the Introduction in the Joint State Register of Legal Entities of Changes of Information on the Legal Entity Other Than the Changes in the Constituent Documents", R16001 "Application for the State Registration of the Legal Entity Because of Its Liquidation", R13002 "Notification of Introduction of Changes in the Constituent Documents of the Legal Entity" and R16003 "Application for the Entry of the Record of Termination of Activities of Incorporated Legal Entity".

The amendments are stipulated by the latest changes in the legislation pertaining to exclusion from the register of inoperative ("dead") legal entities. The amount of payment for the excerpts from the register has not changed, however, the list of information prohibited for disclosing has increased. Thus, information prohibited for disclosing includes the number and date of the personal identification document of the natural person, the body having issued the mentioned document, as well as information on the bank accounts.

Order of the Federal Tax Service No. SAE-3-03/665@ of December 12, 2005 on the Invalidation of the Methodology Recommendations on the Application of Chapter 21 "Value Added Tax" of the Tax Code of the Russian Federation

Pursuant to the entry into force from January 1, 2006 of the Federal Laws No. 117-FZ and No. 119-FZ of July 22, 2005, invalidates the methodology recommendations on the application of Chapter 21 "Value Added Tax" of the Tax Code of the Russian Federation endorsed by the Order of the Ministry of Taxation of Russia No. BG-3-03/447 of December 20, 2000 with amendments.

Letter of the Federal Tax Service No. ChD-6-09/1026@ of December 7, 2005 on the Application of Some of the Methodology Directions for the Tax Bodies on the Registration of Organisations and Natural Persons

Lists invalidated Methodology Directions for the tax bodies on procedural issues of registration of organisations and natural persons.

Also reports that Methodology Directions containing issues of registration of natural persons on grounds other than those envisaged in Item 3 of Article 83 of the Tax Code of the Russian Federation will be invalidated after endorsement in the Ministry of Finance of Russia of the order regulating the mentioned issues included in their sphere of reference in compliance with Item 1 of Article 84 of the Tax Code of the Russian Federation.