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 10.02.2006

Decision of the Government of the Russian Federation No. 77 of February 7, 2006 on the Abolishment of the Licensing of the Import of Carpets and Textile Flooring Originating in the European Union and Invalidation of Some of the Acts of the Government of the Russian Federation

Abandons the licensing of import to the Russian Federation of carpets and textile flooring originating in the European Union. Earlier, the Decision of the Government of the Russian Federation No. 1549 of December 11, 1997 introduced interim quotas for the import of the mentioned commodities.

Decision of the Government of the Russian Federation No. 76 of February 7, 2006 on the Endorsement of the Big and Specially Big Amount of Narcotic Drugs and Psychotropic Substances for the Purposes of Articles 228, 228.1 and 229 of the Criminal Code of the Russian Federation

Defines the big and specially big amounts of narcotic drugs and psychotropic substances for the purposes of Articles 228, 228.1 and 229 of the Criminal Code of the Russian Federation. The given Articles specify criminal responsibility for illegal purchase, storage, transportation, making, processing, production, sale of narcotic drugs, psychotropic substances, as well as for their stealing or extortion.

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

Decision of the Government of the Russian Federation No. 70 of February 4, 2006 on the Endorsement of the Rules of Granting Subsidies from the Federal Budget to the Budgets of the Subjects of the Russian Federation to Reimburse Part of Expenses to Pay the Interest under Loans Obtained in Agricultural Credit Consumer Cooperatives in 2006 by the Members of These Credit Cooperatives

The subsidies are granted to the budgets of the subjects of the Russian Federation to reimburse part of expenses to pay the interest under the loans obtained in agricultural credit consumer cooperatives in 2006 by the members of theses cooperatives - peasant (farmers') enterprises, citizens engaged in part-time framing, as well as agricultural consumer cooperatives where at least 70% of the members are peasant (farmers') enterprises and citizens engaged in part-time framing.

The list of documents confirming the use of loans for designated purposes is defined by the Ministry of Agriculture of Russia. The subsidies are provided to borrowers on the monthly basis in the amount of 95% of the bank rate of the Central Bank of Russia. If the interest rate for the credit is lower than the bank rate of the Central Bank of Russia, the subsidy is granted in the amount of 95% of the actual expenses to pay the interest.

The Decision envisages a monthly submission of reports by the bodies of executive power of the subjects of the Russian Federation authorised to maintain interaction with the Ministry of Agriculture of Russia.

Order of the Federal Customs Service No. 4 of January 11, 2006 on the Authority of the Customs Bodies Located in Moscow, Moscow Province, St.Petersburg and Leningrad Province to Carry out Customs Operations with Diplomatic Mail of Foreign States and Commodities Moved by Individual Categories of Foreigners

Lists customs bodies located in Moscow and the Moscow Province, in St.Petersburg and the Leningrad Province authorised to carry out customs operations with diplomatic mail and the consular pouch of foreign states, as well as commodities moved by foreigners enjoying customs exemptions envisaged in Chapter 25 of the Customs Code.

The Butovo Customs Post of the Moscow Western Customs Office enjoys exclusive authority to carry out customs operations for motor vehicles and trailers to them moved by foreigners enjoying customs exemptions when senders or recipients are located in Moscow and the Moscow Province.

Registered in the Ministry of Justice of the Russian Federation on February 7, 2006. Reg. No. 7458.

Decision of the Federal Service of State Statistics No. 4 of January 24, 2006 on the Endorsement of the Procedure of Filling and Submission of the Form of the Federal Statistical Monitoring PM "Information on the Main Figures of Activities of a Small Enterprise"

According to the endorsed procedure, the form of the federal state statistical monitoring PM "Information on the Main Figures of Activities of a Small enterprise" shall be submitted by pertinent commercial organisations.

Such organisations must meet the following requirements: share of property in the registered capital of the Russian Federation and subjects of the Russian Federation, municipal property, public and religious organisations, charitable and other funds in the registered capital not greater than 25%; share of one or several legal entities other than small businesses not greater than 25%; average number of employees in industry, construction and in transportation - not greater than 100 persons, in agriculture and scientific research sphere - 60 persons, in retail trade and household services - 30 persons, in wholesale trade, other sectors and other types of activities - 50 persons.

Small businesses applying the simplified system of taxation shall preserve existing procedure of submission of statistical reports. The given enterprises shall submit form PM according to the commonly accepted procedure.

Small businesses finding themselves temporarily out of business where production of commodities and services or investment activities were available partly in the reporting period shall submit the form according to the commonly accepted procedure while indicating the time when they were out of business.

Natural persons engaged in entrepreneurial activities without the forming of the legal entity shall not submit form PM of the federal state statistical monitoring.

According to the procedure, the form of the federal state statistical monitoring PM shall include information on the whole of the legal entity, i.e. all branches and structural divisions of the given small enterprise regardless of their place of location.

The form shall be submitted on the quarterly basis as a sum total for the period from the beginning of the reported period and for the appropriate period of the previous year. The procedure specifies the rules of filling out of each section of the form: "Number of Employees and Accrued Earnings"; "General Economic Figures"; "Wholesale and Retail Trade of Commodities, Turnover of Public Catering"; "Cargo Transportation and Turnovers in Highway Transportation"; "Production and Consignments by the Types of Commodities".

Banks, insurance and other financial and credit organisations (including exchanges, pawnshops) shall submit information only in Section 1 "Number of Employees and Accrued Earnings" of form PM.

Pursuant to the endorsement of the procedure, the Decision invalidates from the moment of its entry into force the Decision of the Federal Service of State Statistics No. 14 of February 9, 2005 on the endorsement of the procedure of filling and submission of the form of the federal state statistical monitoring PM "Information on the Main Figures of Activities of a Small Enterprises".

Letter of the Federal Agency for Construction and the Housing and Communal Complex No. SK-426/02 of February 8, 2006 on the Indices of Change of the Estimated Cost for the I Quarter of 2006

Provides indices of change of the estimated cost for the whole of construction and installation works and by items of expenses for the I quarter of 2006 by the subjects of the Russian Federation for objects financed while attracting resources of the federal budget.

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

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