Monitoring of the Federal Legislation dated 30.01.2006

Decision of the Government of the Russian Federation No. 41 of January 26, 2006 on the Criteria to Include the Objects of Power-Supply Network in the Joint National (All-Russia) Power-Supply Network

Extends the list of criteria of inclusion of objects of power-supply networks in the joint national (all-Russia) power-supply network. In particular, the joint national (all-Russia) power-supply network includes power-supply lines (aerial and cables) with the nominal voltage of 110 (150) kW which, if put out of operation, lead to technological restrictions of flow of power over the networks of higher voltage class.

Decision of the Government of the Russian Federation No. 874 of December 31, 2005 on the Endorsement of the Rules of Granting Subsidies in 2006 for Additional Out-Patient Aid to Non-Working Pensioners in the Framework of the Territorial Program of Obligatory Medical Insurance

The subsidies are provided by the Federal Fund of Obligatory Medical Insurance to its territorial funds in the amount envisaged in the budget of the Federal Fund of Obligatory Medical Insurance for the year 2006 for additional out-patient aid to non-working pensioners in the framework of the territorial program of obligatory medical insurance.

The subsidies are granted on the basis of requests submitted on the monthly basis by the territorial funds no later than the 20th of the month following the reported one.

The amount of the subsidy depends on a number of conditions and requirements and may amount to 25% of the bills indicated in the request that are actually covered by medical insurance organisations for out-patient aid for the reported period, or the amount of the normative specified by the Ministry of Public Health and Social Development of Russia.

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

Decision of the Government of the Russian Federation No. 873 of December 31, 2005 on the Requirements to the Technical Means of Registration and Transfer of Information on the Volume of Production and Circulation of Alcoholic Products

Technical means of registration and transfer of information may be of three types: for outfitting the main technological equipment for production of alcoholic products, for outfitting the equipment of registration of the volume of circulation and/or use for own needs, as well as for outfitting the equipment of registration of volume of import of alcoholic products.

Each type of the technical means must contain a computer for registration and transfer of information on the volume of production and circulation of alcoholic products, software and the means of protection of information.

The Ministry of Finance of Russia in coordination with the Federal Security Service of Russia and the Ministry of Agriculture of Russia are ordered to endorse within one month a procedure of providing software to organisations engaged in production and/or circulation of alcoholic products.

Letter of the Federal Tax Service No. MM-6-03/85 of January 27, 2006 on the Inventory Taking in Compliance with Item 1 of Article 2 of the Federal Law No. 119-FZ of June 22, 2005

Explains the procedure of drawing up of the results of inventory taking of payables and receivables by VAT payers as of January 1, 2006. The results of the inventory taking may be drawn up as a certificate according to the form provided in the Letter.

The inventory taking does not apply to banks, insurance organisations, non-state pension funds having recorded in their accounting policy for the year 2006 the procedure of VAT calculation in compliance with Item 5 of Article 170 of the Tax Code of the Russian Federation stating that the tax payment to the budget for operations subject to taxation will be carried out in 2006 as soon as the payments are received.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-04-15/01 of January 16, 2006 on the Procedure of Determination after January 1, 2006 of the Taxable Base for the Value Added Tax in Construction for Own Use and Exemptions from This Tax for Commodities (Works, Services) Purchased in 2005 for the Given Works after January 1, 2006

In construction and installation works for own consumption after January 1, 2006, the taxable base for the value added tax for the appropriate tax period should be determined proceeding from all actual expenses of the taxpayer in the volume of works fulfilled in the appropriate tax period.

VAT amounts paid for the commodities (works , services) purchased by the taxpayer in 2005 for construction and installation works after January 1, 2006 shall be subject to exemptions as soon as appropriate objects finished after capital construction are registered or in cases of sale of the object of unfinished capital construction on the basis of invoices and documents confirming the actual payment of the tax amounts.