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 27.06.2006

Decision of the Government of the Russian Federation No. 388 of June 22, 2006 on the Procedure of Granting Subsidies in 2006 from the Federal Budget to the Budgets of the Subjects of the Russian Federation to Implement the Measures of the Federal Targeted Program "Equalisation of Differences in the Socio-Economic Development of the Regions of the Russian Federation (Years 2002-2010 and Until 2015)" <br />

Changes the mechanism of implementation of the federal targeted program "Equalisation of Differences in the Socio-Economic Development of the Regions of the Russian Federation (Years 2002-2010 and Until 2015)". In particular, abandons the provision specifying that selection of the regions and projects for the state support for the subsequent fiscal year is vested in the Ministry of Economic Development of Russia together with the Ministry of Finance of Russia. Also abandons the norm specifying the financing of the program at the expense of resources of the federal budget exclusively.

According to the introduced rules of granting subsidies in 2006 from the federal budget to the budgets of the subjects of the Russian Federation to implement the measures of the mentioned program, the subsidies are provided on the terms of shared financing of construction projects and objects of the primary, general and secondary (special) education, public health, electric and thermal power, gas and water supplies available in the state property of the subjects of the Russian Federation and municipal property. Selection of objects intended for construction (reconstruction) while attracting the subsidies is vested in the bodies of state power of the subjects of the Russian Federation. The period of construction (reconstruction) of the object must not be greater than 3 years as a rule.

The rules provide the list of the documents submitted to get the subsidy and open object financing. The subsidies are transferred taking into account the levels of co-financing of objects. Calculation of the amount of subsidy may include also expenses of subsidising of the part of the interest rate (not higher than the rate of refinancing of the Central Bank of the Russian Federation) for the credits obtained by enterprises and organisations in 2006 in Russian credit organisations to finance the construction (reconstruction) of objects.

Order of the Ministry of Finance of the Russian Federation No. 86n of June 1, 2006 on the Amendments to the Order of the Ministry of Finance of the Russian Federation No. 112n of September 7, 2005 on the Endorsement of the Form "Information on the Land Plots, As Well As the Persons Holding the Right of Ownership, Right of Permanent (Unlimited) Use or the Right of Life-Time Inherited Possession" and Its Filling Recommendations <br />

To refine the mentioned form, provides a new wording of Sheet C "Information on the Holder of the Rights (Legal Entity) for the Land Plot" and Sheet D "Information on the Holder of the Rights (Natural Person) for the Land Plot".

Registered in the Ministry of Justice of the Russian Federation on June 22, 2006. Reg. No. 7968.

Order of the Federal Service of Insurance Enforcement No. 558 of May 22, 2006 on the Printing Body to Publish the Acts of the Federal Service of Insurance Enforcement <br />

The acts of the Federal Service of Insurance Enforcement restricting, suspending and renewing the licenses for insurance activities, as well as revoking the license for insurance activities shall be published in the Finansovaya Gazeta.

Registered in the Ministry of Justice of the Russian Federation on June 22, 2006. Reg. No. 7965.

Order of the Ministry of Economic Development of the Russian Federation No. 104 of April 21, 2006 on the Endorsement of the Method for the Federal Tax Service to Record and Analyse the Financial Standing and Paying Capacity of Strategic Enterprises and Organisations <br />

Specifies the procedure for the Federal Tax Service of Russia for the record keeping and analysis of the financial standing and solvency of enterprises and organisation included in strategic ones, as well as defines the set of information to be submitted by the Federal Tax Service of Russia to the federal bodies of executive power for the purpose of current analysis of the financial standing of strategic enterprises and organisations and their paying capacity.

Registered in the Ministry of Justice of the Russian Federation on June 21, 2006. Reg. No. 7953.

Order of the Ministry of Economic Development of the Russian Federation No. 121 of May 3, 2006 on the Declaring of Individual Types of Commodities <br />

Specifies the list of commodities that may be declared by submission of the tax declaration in the form of a written application. The list includes commodities intended for exhibitions, fairs, sports competitions and exercises, concerts, contests, festivals and other similar measures and declared for placing under the customs regime of temporary import or temporary export, spare parts and equipment intended for repair and technical maintenance of the temporarily imported transport vehicles and declared for placing under the customs regime of processing on the customs territory or temporary import, commodities declared for placing under the customs regime of free warehouse, commodities declared for placing under special customs regimes.

Declaring of commodities by submission of the customs declaration in the form of a written application is not permitted for declaring of currency values, the currency of the Russian Federation and internal securities in the documentary form, traveller's checks precious metals and precious stones, radio active materials, commodities moved over pipelines and electric power lines.

The Order provides the list of information that must be indicated in the customs declaration submitted in the form of a written application and the form of such application. The declaring party or the customs broker (representative) on his errand may also use this form of the application when declaring the commodities while submitting the cargo customs declaration instead of the additional sheets to the cargo customs declaration. The main sheet of the cargo customs declaration in this case is filled out with some particulars (provided in the Appendix).

The Order is entered into force 10 days after the day of its official publication.

Registered in the Ministry of Justice of the Russian Federation on June 20, 2006. Reg. No. 7952.

Order of the Federal Fund of Obligatory Medical Insurance No. 55 of May 10, 2006 on the Amendments to the Typical Rules of Obligatory Medical Insurance of Citizens <br />

According to the amendments, the territorial fund of obligatory medical insurance may not refuse a medical insurance organisation (its branch) to conclude the financing contract in the presence with the latter of concluded contracts of obligatory medical insurance with insurants for both working and non-working citizens (earlier, contracts for non-working citizens were necessary) and the contracts for the medical treatment and preventive aid (medical services) ensuring implementation of the territorial program of obligatory medical insurance in full amount. The previous wording of the rules also required the presence of concluded contracts with medical institutions and pharmacy organisations ensuring proper full and quality supplies of necessary medicines.

Registered in the Ministry of Justice of the Russian Federation on June 20, 2006. Reg. No. 7946.

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