Monitoring of the Federal Legislation dated 20.04.2006

Direction of the Central Bank of Russia No. 1676-U of march 29, 2006 on the Amendment to the Instruction of the Bank of Russia No. 111-I of March 30, 2004 on the Obligatory Sale of Part of Currency Receipts at the Internal Currency Market of the Russian Federation

According to the amendments, the normative of obligatory sale of part of currency receipts is reduced from 10% to 0%.

The Direction 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 April 17, 2006. Reg. No. 7716.

Order of the Ministry of Finance of the Russian Federation No. 43n of March 17, 2006 on the Endorsement of the Procedure of Filling of Declarations on the Volume of Production, Circulation and Use of Ethyl Alcohol, Alcoholic and Alcohol-Containing Products

Declaring of the volumes of production and circulation of ethyl alcohol, alcoholic and alcohol-containing edible products, alcohol-containing non-edible products with the content of ethyl alcohol greater than 40% of the volume of the finished products and the volumes of use of ethyl alcohol for production of alcoholic and alcohol-containing products shall be done by organisations using 7 forms of declarations envisaged in the Regulation on submission of declarations of the volumes of production, circulation and use of ethyl alcohol, alcoholic and alcohol-containing products endorsed by the Decision of the Government of the Russian Federation No. 858 of December 31, 2005.

The declarations shall show the volumes of produced items having undergone the whole cycle of technological processing including the products bottled in consumer containers and prepared for bottling and meeting the requirements indicated in the documents endorsed according to established procedure for the appropriate type of products.

Operations of handing over of ethyl alcohol or another raw material for further processing by one separate division of the organisation to another separate division of this organisation must be shown in the declaration of the first separate division. Reception of ethyl alcohol or another raw material by the separate division of the organisation from another separate division of the same organisation for further processing must be shown in the declaration of the first separate division.

The procedure shall apply to declarations submitted for the first reporting period of 2006.

Registered in the Ministry of Justice of the Russian Federation on April 17, 2006. Reg. No. 7713.

Order of the Ministry of Finance of the Russian Federation No. 47n of March 23, 2006 on the Endorsement of the Form "Information on Land Plots Located within the Boundaries of the Municipal Formation" and Its Filling Recommendations

Endorses the form "Information on Land Plots Located within the Boundaries of the Municipal Formation" (KND form 1114227) and its filling recommendations.

Information on the land plots located within the boundaries of the municipal formation shall be filled out by the bodies of municipal formations on the basis of the acts of allocation (granting) of the land plot. The mentioned bodies must report on the annual basis before February 1 of the year being the tax period to the tax bodies at the place of their location information on the land plots recognised as object of taxation as of January 1 of the year being the tax period.

Registered in the Ministry of Justice of the Russian Federation on April 17, 2006. Reg. No. 7712.

Order of the Federal Service for Financial Markets No. 06-25/pz-n of March 7, 2006 on the Endorsement of the Regulation on the Criteria of Liquidity of Securities

Specifies the criteria of liquidity of securities to be used to accept securities as a collateral of client obligations in granted loans to commit marginal transactions, as a collateral of client obligations in calculation of the level of margin, as well as to sell them as a result of unsecured transactions with securities committed by the broker. The valuable paper must be included in quotation list of at least one stock exchange, with the resulting specific weight of the valuable paper as a result of the tenders at the stock exchange for the most recent reporting quarter being greater than 10%.

The drawing up of the list of liquid securities by the trade organisers at the securities market is envisaged on the quarterly basis. The list of liquid securities becomes obligatory from the 15th working day following the reported quarter.

The Order is entered into force from July 1, 2006.

Registered in the Ministry of Justice of the Russian Federation on April 17, 2006. Reg. No. 7707.

Order of the Federal Service for Financial Markets No. 06-24/pz-n of March 7, 2006 on the Endorsement of the Rules of Brokerage Activities When Committing Transactions at the Securities Market Using Monetary Resources and/or Securities Handed over by the Broker to Client As a Loan (Marginal Transactions)

Introduces uniform requirements to brokerage activities for the cases of committing of transactions of purchase and sale of securities where the payments are made using monetary resources or securities provided by the broker to the client as a loan (marginal transactions) and in the cases of purchase and sale of securities (except for the futures transactions committed at the stock exchange) concluded on the terms of execution of obligations under transactions on the day of their committing if, at the moment of conclusion of transactions, amount of monetary resources registered on the internal account of payments with the client or the amount of securities, taking into account the claims rights and obligations to pay money and supply securities for the earlier concluded transactions, is not enough to execute obligations under such transaction (unsecured transactions).

The Order is entered into force from May 1, 2006.

Registered in the Ministry of Justice of the Russian Federation on April 17, 2006. Reg. No. 7706.

Order of the Federal Service of Tariff Rates No. 56-e/1 of March 21, 2006 on the Endorsement of the Methodology Directions to Calculate Tariff Rates for the Services of Transfer of Eclectic Power over the Joint National (All-Russia) Power-Supply Network

Provides Methodology Directions to calculate tariff rates for the services of transfer of electric power over the joint national (all-Russia) power-supply network endorsed by the Federal Service of Tariff Rates.

The Methodology Directions are used to calculate tariff rates specified by the Federal Service of Tariff Rates of Russia for the services of transfer of electric power rendered by the organisation rendering services of transfer of electric power over the joint national (all-Russia) power-supply network using objects of power-supply facilities forming part of the joint national (all-Russia) power-supply network and owned by it on the proprietary basis or using objects of power supply facilities forming part of the joint national (all-Russia) power-supply network and owned by other parties.

The mentioned tariff rates are specified for the subjects of the wholesale market, as well as for other parties possessing objects of power-supply industry on the proprietary basis or otherwise that are connected technologically to the joint national (all-Russia) power-supply network and used by the organisation to render services of transfer of electric power.

The Methodology Directions specify general rules of calculation of tariff rates for the services of transfer of electric power over the joint national (all-Russia) power-supply network, as well as define the procedure of calculation of expenses and profits included in the necessary gross receipts of the organisation for the maintenance of objects of power supply facilities forming the joint national (all-Russia) power-supply network.

Registered in the Ministry of Justice of the Russian Federation on April 17, 2006. Reg. No. 7704.

Direction of the Central Bank of Russia No. 1675-U of March 29, 2006 on the Amendments to the Direction of the Bank of Russia No. 1577-U of May 6, 2005 on the Reservation Requirement When the Residents Make Transfers of Resources on Their Accounts (in Deposits) Opened in the Banks outside the Russian Federation

From May 1, 2006, reduces from 25% to 12.5% the normative of reservation when residents (natural person independent entrepreneurs and legal entities, including the currency exchanges), except for credit organisations, make transfers of resources on their accounts (in deposits) opened in the banks outside the territory of the Russian Federation from their accounts (deposits) in the authorised banks.

The Direction must be published officially in the Herald of the Bank of Russia and is entered into force from May 1, 2006.

Registered in the Ministry of Justice of the Russian Federation on April 17, 2006. Reg. No. 7703.

Direction of the Central Bank of Russia No. 1674-U of March 29, 2006 on the Amendments to the Direction of the Bank of Russia No. 1465-U of June 29, 2004 on the Reservation Requirement When Transferring Monetary Resources on the Special Bank Accounts and When Writing off of Monetary Resources from the Special Bank Accounts

From May 1, 2006, reduces two times the normatives of reservation of resources introduced by the Bank of Russia for the cases of currency operations pertaining to the outgoing and incoming flow of capital.

Registered in the Ministry of Justice of the Russian Federation on April 17, 2006. Reg. No. 7702.

Order of the Ministry of Finance of the Russian Federation No. 48n of March 23, 2006 on the Endorsement of the Form of the Tax Estimate for Advance Payments for the Transportation Tax and Its Filling Recommendations

Endorses a new form of the tax estimate for advance payments for the transportation tax (KND form 1152027) and its filling recommendations. The estimate shall be submitted by taxpayers during the tax period no later than the last of the month following the expired reported period. The estimate is submitted to the tax bodies where the taxpayers are registered at the place of location of transport vehicles.

The Order shall apply beginning with the estimates of advance payments for the transport tax for the I quarter of 2006.

Registered in the Ministry of Justice of the Russian Federation on April 17, 2006. Reg. No. 7699.

Order of the Ministry of Agriculture of the Russian Federation No. 8 of January 25, 2006 on the Endorsement of the Method of Determination of the Planned Annual Volumes of Subsidies to the Subjects of the Russian Federation to Reimburse in 2006 Part of Expenses to Pay the Interest under Investment Credits Obtained by Agricultural Producers, Organisations of the Agroindustrial Complex of All Proprietary Forms and Peasant (Farmers') Enterprises in Russian Credit Organisations for up to 8 Years

The method of determination of the volumes of subsidies to cover the interest for the 8 year-long investment credits obtained by agricultural producers, organisations of the agroindustrial complex and peasant (farmers') enterprises in Russian credit organisations is endorsed in compliance with the schedule of implementation of the priority national project "Development of the Agroindustrial Complex".

The method shall apply in the determination of the planned annual volumes of subsidies to the subjects of the Russian Federation to reimburse part of expenses to pay the interest under investment credits obtained in 2006 in Russian credit organisations for development of animal breeding, in particular, construction, reconstruction and modernisation of animal breeding complexes (farms).

The volume of subsidies for the subject of the Russian Federation is determined proceeding from the volume of subsides for each object included by the Ministry of Agriculture of Russia at the presentation of the subject of the Russian Federation in the list of objects due for subsidising at the expense of the federal budget. Selection of such objects is vested in the expert group on the basis of criteria specified in the method, the priority directions being the objects of milk and meet animal breeding and swine breeding.

Information of the list of selected objects is used to determine the planned annual volumes of subsidies conveyed to the subjects of the Russian Federation according to established procedure. The Ministry of Agriculture of Russia is empowered with authority to redistribute on the quarterly basis allocated volumes by the subjects of the Russian Federation.

Registered in the Ministry of Justice of the Russian Federation on April 17, 2006. Reg. No. 7698.

Order of the Ministry of Agriculture of the Russian Federation No. 94 of March 29, 2006 on the Endorsement of the Procedure of Granting Subsidies in 2006 from the Federal Budget to the Budgets of the Subjects of the Russian Federation for the State Support of Individual Sectors of Agricultural Production

Regulates the granting of subsidies in 2006 from the federal budget to the budgets of the subjects of the Russian Federation for the state support of individual sectors of agricultural production. Specifies the amounts (rates) of subsidies for the appropriate types of expenses for the year 2006.

The subsidies from the federal budget transferred to the budgets of the subjects of the Russian Federation shall be granted to legal entities of any organisational and legal form, as well as to peasant (farmers') enterprises. The subsidies shall be granted to support pedigree animal breeding, support elite seed production, production of flax and hemp, support of delivery of seeds to northern and mountainous regions of the country, support of perennial plantations.

Recipients of subsidies shall submit on the quarterly basis to the body designated by the body of executive power of the subject of the Russian Federation to interact with the Ministry of Agriculture of Russia estimate certificates on the due subsidies, as well as the copies of documents certified according to established procedure serving as grounds to get the subsides. The Ministry of Agriculture of Russia shall determine the actual volume of subsidies on the quarterly basis on the basis of summary estimate certificates of the due subsidies presented by the subjects of the Russian Federation. The granting of subsidies to recipients shall be arranged through the authorised body of executive power of the subject of the Russian Federation.

Registered in the Ministry of Justice of the Russian Federation on April 17, 2006. Reg. No. 7697.

Letter of the Federal Tax Service No. ShT-6-03/417@ of April 19, 2006 on the Procedure of Drawing up of the Certificate of Payables and Receivables Determined in Accordance with Item 1 of Article 2 of the Federal Law No. 119-FZ of July 22, 2005

When VAT payers draw up the certificate of creditor indebtness one should take into account that if the buyer taxpayers fail to receive until December 31, 2005 inclusive invoices for commodities (works, services) accepted for registration until January 1, 2006 but not paid until this date, including the fixed assets non-material assets, proprietary rights, it is recommended to register such invoices as soon as they are received in the form of appendices to the certificate and send the given appendices to the tax body simultaneously with submission of the tax declaration for the tax period when the mentioned invoices were received. The taxpayers having defined earlier the moment of determination of the taxable base as the day of dispatching that apply tax exemptions may present for exemption VAT amounts for commodities (works, services) accepted for registration until January 1, 2006 but not covered until this date indicated in invoices received in the first six months of 2006 in equal portions during the tax periods until the end of the first six months of 2006, i.e. until July 1, 2006.

For the contracts concluded in foreign currencies (conditional monetary units) where the payment for commodities (works, services), proprietary rights is made in roubles in the amount equivalent to the amount of foreign currency (or conditional monetary units), Columns 4 and 5 of the certificate of receivables (payables) are used to enter amounts of indebtness accrued according to accounting information. When the mentioned receivables (payables) are redeemed by taxpayers having defined earlier the moment of determination of the taxable base as the day of payment, the taxable base for such taxpayers is determined taking into account the changes increasing or reducing the taxable base as of the date of redemption of the indebtness, with tax exemptions applied proceeding from amounts of actual payment in the presence of appropriate invoices.