Windfall tax for major companies to be introduced in Russia

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Monitoring of the Federal Legislation dated 31.08.2006

Decision of the Government of the Russian Federation No. 466 of July 28, 2006 on Endorsing the Indexation Coefficient for the Insurance Portion of Labour Pension Effective August 1, 2006

From August 1, 2006 the insurance portion of labour pension will be increased by 6.2%. The previous rise in the insurance portion of labour pension took place on April 1, 2006. The insurance portion of the pension has grown by 6.3%.In accordance with the Federal Law on Labour Pensions in the Russian Federation the coefficient of indexation of the insurance portion of labour pension is determined on the basis of inflation level for the period preceding an indexation.The Decision comes into force as of August 1, 2006.

Decision of the Government of the Russian Federation No. 460 of July 26, 2006 on Amending Decision of the Government of the Russian Federation No. 69 of February 11, 2005

The amendments are due to the adoption of Federal Law No. 49-FZ of April 15, 2006 whereby the Law of the Russian Federation on the Sub-Soil was modified.According to the amendments governmental bodies of subjects of the Russian Federation have a right to carry out a state examination of mineral reserves, geological, economic and ecological information on the sub-soil tracts granted for use as containing deposits of wide-spread minerals, local-significance sub-soil tracts and also the local-significance sub-soil tracts used for the purpose of constructing and operating underground installations not relating to mining. In this case payment for the examination of these sub-soil tracts comes to the budgets of the subjects of the Russian Federation.The provisions defining the procedure for organising the state examination in as much as wide-spread minerals are concerned are applicable to an expert examination with a view to all the above sub-soil tracts.The Decision enters into force as of January 1, 2007.

Decision of the Government of the Russian Federation No. 459 of July 26, 2006 on the Federal Customs Service

In connection with the fact that the Federal Customs Service of the Russian Federation has been taken from the jurisdiction of the Ministry of Economic Development and Trade of the Russian Federation to report directly to the Government of the Russian Federation and that it has acquired the functions of elaborating state policy and exercising normative legal regulation in the area of customs affairs new Regulations on the Federal Customs Service are approved. The Federal Customs Service is an empowered federal executive governmental body carrying out the function of elaborating state policy, exercising normative legal regulation, control and supervision in customs affairs. The Service has the functions of a currency control agent and the special functions of fighting against contraband, other crimes and administrative offences. In accordance with the new status the powers of the Federal Customs Service are defined in the established area of activity as well as the organisation of the Service's activities.With the amendments, the role of the law-enforcement part of the Federal Customs Service is enhanced. Thus, the deputy head of the Federal Customs Service responsible for the operative investigation operations of the customs bodies reports to the head of the Federal Customs Service on the issues of financial and economic activity, but has the power to take decisions at his own discretion concerning operative investigation matters.

Order of the Ministry of Transport of the Russian Federation No. 87 of July 21, 2006 on Endorsing the Rules for Registering Vessels and Rights Thereto in Sea Merchant Ports

The new Rules supersede the Rules for Registering Vessels and Rights Thereto in Sea Merchant Ports approved by Order of the Ministry of Transport of the Russian Federation No. 145 of November 29, 2000 to establish a procedure for registering vessels and rights thereto in sea merchant ports, except for fishing fleet vessels.Vessels and rights thereto are registered in the system of records concerning vessels and rights thereto in the State Registry of Vessels of the Russian Federation, the Russian International Registry of Vessels and the register of vessels under construction. A foreign boat chartered by a Russian charterer on bare-boat terms may be registered in a bare-boat charter registry or the Russian International Registry of Vessels.A list is provided of the merchant ports which register vessels in the Russian International Registry of Vessels as well as a list of the merchant ports in which registration in other registries can take place. Registration is accomplished in one of the merchant ports as might be chosen by the owner of the vessel or charterer, and the registration of rights of ownership in a vessel under construction is effectuated in the merchant port which is the closest to the shipbuilding organisation. The mortgage of a vessel under construction is registered in the registry of vessels under construction in which the right of ownership in the vessel under construction has been registered.A vessel registered in a registry of vessels of a foreign state may be registered in a Russian registry after the show of a certificate confirming that the vessel has been removed from the foreign registry.The following is subject to registration: rights of ownership and other rights in rem in vessels, and also limitations on rights in them (encumbrances).A detailed description of registration procedure is provided including the term for completion of registration actions, and the composition of registries is defined. The following is shown as separate items: the procedure for registering rights in a vessel under construction, the procedure for registering a suspension of a right of navigation under the State Flag of the Russian Federation and of the granting of that right to a vessel acquired in a foreign country, and the procedure for carrying out certain types of transactions in line of keeping registries (changing the port of registration, removal of ports from registries).The registration body is the captain of a sea merchant port.Registries of vessels are opened to the public. Excerpts from a registry are issued for payment at a rate determined in the procedure established by the Government of the Russian Federation.A state duty is charged for registration at the rate and in the procedure established by the legislation on taxes and fees. The Federal Service for Supervision in the Area of Transport is responsible for monitoring the vessel registration activities of the captains of merchant ports.Exhibits of the documents issued at registration are provided.Registered by the Ministry of Justice of the Russian Federation, registration No. 8108 of July 26, 2006.

Decree of the President of the Russian Federation No. 795 of July 1, 2006 on Raising the Salaries of Judges in the Russian Federation



Effective July 1, 2006, a rise occurred in the official salaries of judges of the Constitutional Court of the Russian Federation, the Supreme Court of the Russian Federation and other federal general jurisdiction courts, the Higher Arbitration Court of the Russian Federation and other federal arbitration courts and the justices of the peace of subjects of the Russian Federation.The Decree enters into force as of the date of its official publication.



Decree of the President of the Russian Federation No. 766 of July 25, 2006 on Raising the Monetary Remuneration of the State Office-Holders of the Russian Federation

Effective August 1, 2006 a 15-per cent rise takes place in the monetary remuneration of the top officials of the Russian Federation, i.e. the President of the Russian Federation, members of the Government of the Russian Federation, the Secretary of the Security Council of the Russian Federation, members of the Election Commission of the Russian Federation, the Director General of the Judicial Department under the Supreme Court of the Russian Federation, the Human Rights Commissioner of the Russian Federation, and also of the persons who occupy state offices of the Russian Federation in diplomatic missions and Russia's missions with international organisations in foreign states. The previous rise in the monetary remuneration of the said officials took place on October 1, 2003 (by 11%). Last time the monetary remuneration of the President of the Russian Federation and Chairman of the Government of the Russian Federation was increased 2.1 times on March 9, 2004.The Decree enters into force as of the date when it is signed.

Decree of the President of the Russian Federation No. 765 of July 25, 2006 on the Lump-Sum Incentive Bonus Payable to the Persons Undergoing Federal State Service

The rates are set for the lump-sum incentive bonus payable to persons undergoing federal state service when they receive decorations, honorary titles or incentives.Federal state civil servants, military personnel, the personnel of internal-affairs bodies, the institutions and bodies of the criminal penitentiary system, the State Fire-Fighting Service of the Ministry of the Russian Federation for Civil Defence Issues, Emergency Situations and Liquidation of the Consequences of Natural Disasters, the bodies charged with control of narcotic drugs and psychotropic substances, customs bodies and the commanding members of the federal courier service are entitled to receive a lump-sum incentive bonus equal to one monthly allowance of money if provided by the Government of the Russian Federation; two monthly allowances of money if provided by the President of the Russian Federation; three salaries when the honorary titles of the Russian Federation and the badges of distinction of the Russian Federation are conferred; five salaries when the orders or medals of the Russian Federation are bestowed; and ten salaries when the "Gold Star" Medal is bestowed.



Decree of the President of the Russian Federation No. 764 of July 25, 2006 on the Allowance of Money Payable to the Federal State Civil Servants Who Occupy Positions of Federal State Civil Service in a Federal State Body Located outside of the Russian Federation

Effective August 1, 2006, the federal state civil servants who occupy the positions of federal state civil service in a federal state body located outside of the Russian Federation are entitled to receive an allowance of money in a foreign currency as a monthly official foreign currency salary. The monthly salaries corresponding to the position occupied, rank (diplomatic rank), monthly and other supplementary compensations (except for a monthly incentive in cash) envisaged by Article 50 of Federal Law No. 79-FZ of July 27, 2004 on the State Civil Service of the Russian Federation (bonuses for long-service, special service conditions, handling state-secret information, especially-important assignments, lump-sum vacation payment and subsistence allowance) are paid in roubles at the rate of 20%.The Decree enters into force as of August 1, 2006.

Decision of the Government of the Russian Federation No. 469 of July 29, 2006 on Amending Decision of the Government of the Russian Federation No. 487 of June 27, 2001

The following is brought in line with Federal Law No. 122-FZ of August 22, 2004 which re-distributed powers between the governmental bodies of the various levels in terms of financing social support to citizens: Decision of the Government of the Russian Federation No. 487 of June 27, 2001 on Endorsing the Model Regulations on the Provision of Scholarships and Other Forms of Subsistence Assistance to Students of Federal State Higher and Secondary Vocational Education Institutions, Post-Graduates and Aspirants for Doctor Degree.The Decision is supplemented with a provision for allocation of funds for the purpose of setting the rate of scholarship with due regard to residence in the extreme natural and climatic conditions of the North.Since the financing of a social support in the form of compensations for a rise in the prices for meals in students' canteens, reduced transport fares and sanatorium and health-resort health treatment has been handed over to local budgets the relevant provision has been removed from the Model Regulations on Scholarships.



Decision of the Government of the Russian Federation No. 468 of July 28, 2006 on Endorsing Lists of the Goods (Works/Services) Whose Manufacturing (Completion/Provision) Cycle Exceeds Six Months

The new list is to replace List-2001 comprising 140 commodity items and based on CC FEA codes. The new list has 45 items shown in compliance with the All-Russia Classification of Products (ACP) and the All-Russia Classification of Types of Economic Activity (ACTEA). If the taxpayer being the manufacturer/provider of goods (works, services) receives payment or partial payment for a forthcoming delivery of goods (completion of works, provision of services) whose manufacturing/provision cycle exceeds six months (according to the said list) he is entitled to recognise the time of tax base assessment as the date of shipment (delivery) of the goods (completion of the works or services) if separate records are kept of transactions accomplished and tax amounts on acquired goods (works and services), in particular, in respect of the fixed assets and intangible assets and property rights used to carry out the operations of manufacture of the goods (works or services) having a long manufacturing cycle as well as other operations.The Decision enters into force as of the date of its official publication, and it extends to the tax legal relationships that have come into being since January 1, 2006.

Order of the Federal Antimonopoly Service No. 108 of April 25, 2006 on Endorsing the Procedure for Analysing and Assessing the State of Competitive Environment in a Commodity Market

The procedure is elaborated for the purpose of implementing the Law of the RSFSR on Competition and Limitation of Monopolistic Activities in Commodity Markets and it is intended for being used in the cases requiring an analysis and assessment of the state of competitive environment in a commodity market or the position of economic entities therein, for instance when cases are considered because the features of an offence exist like an abuse by an economic entity of its dominating position in the market or coordinated actions of economic entities that limit competition; when the state monitors the formation and re-organisation of commercial and non-commercial organisations, the observance of the antimonopoly legislation in cases when shares (stakes) are acquired in the charter capitals of commercial organisations and in other cases; when prescriptions are issued for enforced division (separation) of commercial organisations and non-commercial ones pursuing entrepreneurial activities; when the Register of the Economic Entities Accounting for a Share of over 35% in a Commodity Market is maintained.The procedure defined "analysis and assessment phases", the methods used in each of the phases, and the sources of initial information.From the entry into force of this Order the procedure previously in effect is not applicable, except for the provisions concerning the analysis of the market potential of an economic entity.Registered by the Ministry of Justice of the Russian Federation, registration No. 8121 of July 27, 2006.

Order of the Federal Service for Technical and Export Control No. 222 of July 7, 2006 on Endorsing the Forms of Documents Used by the Federal Service for Technical and Export Control in the Licensing of the Activity of Technical Protection of Classified Information and the Activity of Elaborating and/or Manufacturing Classified Information Protection Facilities

The following has been confirmed: the forms of documents used by the Federal Service for Technical and Export Control in the licensing of the activity of technical protection of classified information and the activity of elaborating and/or manufacturing classified information protection facilities. They include a licence application, licence prolongation application, application for an excerpt from the register of licences and other documents. Registered by the Ministry of Justice of the Russian Federation, registration No. 8114 of July 27, 2006.

Order of the Federal Service on Financial Markets No. 06-70/pz-n of June 27, 2006 on Amending the Procedure for Licensing Types of Professional Activity in the Securities Market Endorsed by Order of the Federal Service on Financial Markets No. 05-3/pz-n of March 16, 2005

The list of the documents required for licensing purposes has been supplemented with copies of documents confirming the compliance of the contender's employees responsible for internal control for the purpose of countering money laundering and the financing of terrorism with qualification standards.An addendum has been made concerning the requirements applicable to documents filed. Thus, if only copies of balance sheets and statements of profits and losses are filed for the last year of operation of founders (legal entities having ten per cent and more of the charter capital) of a contender for a licence these documents are attested to by the signature of the head and also of the person responsible for the bookkeeping of the contender's founders being legal entities.A copy of a report of the controller of the contender for a licence is filed only for the full last quarter of operation as a professional participant in the securities market (before it was to be also provided for the last full year of operation).Relevant amendments are made to licensing terms and conditions.Another ground is added for taking a decision on annulling a licence, i.e. the non-submission to the licensor within the term specified in a prescription of documents confirming the elimination of the irregularities deemed ground for suspending the licence and/or confirming the taking of measures for prevention of irregularities in the future.Amendments have been made to the form "Breakdown of Data on Borrowed Funds and Receivables" (Annex No. 3 to Licensing Procedure). Registered by the Ministry of Justice of the Russian Federation, registration No. 8112 of July 27, 2006.

Order of the Ministry of Education and Science of the Russian Federation No. 69 of March 27, 2006 on the Details of Working Hours and Leisure Hours of the Educational Staff and Other Employees of Educational Institutions

The Regulations regulate the working hours and leisure hours of employees of educational institutions with due regard to the details of operation of educational institutions of various types and kinds, and designate the types of work carried out by educational staff within their working hours. Time rates (hours) are established only for teaching work. Other types of educational work (scientific-research, methodological, organisational, educational-tutorial, sporting-health rehabilitation) is carried out over the working hours and are not specified in terms of number of hours.The Regulations define working hours during the academic year, vacation period and a period without classes for sanitary-epidemiological, climatic and other reasons. The details are established of regulation of employees' working hours in health-rehabilitation educational institutions and in educational institutions which leave cities for summer houses and/or organise summer-time recreation in the same or another area, and also during hiking, excursions, expeditions and other trips. Working hours are regulated for the teaching staff of higher professional education institutions and supplementary professional education (upgrading) institutions for specialists, educationalists-psychologists and tutors of pre-school education institutions.Specific working hours and leisure hours are established by the in-house employee rules of an educational institution, by work timetables and a collective agreement elaborated in keeping with applicable legislation of the Russian Federation. While compiling timetables for educational and other personnel one is not to allow breaks in working hours which are not relating to rest and meals (gaps) except for boarding educational institutions (boarding schools, children's homes, the boarding houses attached to educational institutions) where tutorial and teaching activities are interlaced over the day within the established hours. In such institutions for the tutors who carry out educational work in groups of school-age pupils working hours may be established as split into portions with a break of two or more hours in a row, with a relevant compensation being provided for this inconvenience in the procedure and at the rates set out in the collective agreement.Since for educational staff who work continuously over the day no meal break is established the employer must provide them with an opportunity for taking their meals during working hours simultaneously with students, pupils or separately on premises specifically intended for the purpose.Registered by the Ministry of Justice of the Russian Federation, registration No. 8110 of July 26, 2006.

Letter of the Ministry of Finance of the Russian Federation No. 03-05-02-03/23 of June 9, 2006

An explanation is provided for the details of filling in a tax return for the purposes of uniform social tax by the taxpayers whose tax period in 2006 expires before the expiry of the calendar Year 2006 (in case of liquidation, re-organisation etc.).The explanations are sent because according to Federal Law No. 158-FZ of December 6, 2005 from January 1, 2006 the 0.3-percentage point reduction occurred in the rate of uniform social tax entered in the Federal Social Insurance Fund, and the 0.3-percentage point rise occurred in the rate of tax entered in the Fund of Obligatory Medical Insurance. However, these changes have not yet been reflected in Order of the Ministry of Finance of the Russian Federation No. 19n of January 31, 2006 on Endorsing the Form of Tax Return for the Purposes of Uniform Social Tax for the Taxpayers Paying Out to Natural Persons, and the Procedure for Filling It In.

Decision of the Government of the Russian Federation No. 471 of July 31, 2006 on Amending the Regulations on Tenders for the Creation of Special Economic Zones and the Rules for Drawing Up and Filing a Bid for the Creation of a Special Economic Zone

The amendments are made in connection with the adoption of Federal Law No. 76-FZ of June 3, 2006 which introduced a new type of special economic zone -- tourism & recreation special economic zone -- set up to develop and effectively use tourism resources in Russia.For instance, to assess the feasibility and effectiveness of a would-be tourism & recreation special economic zone the following criteria must be taken into account: the availability of engineering, transport, social and other infrastructures in that area, the actual condition thereof, the forecast number of jobs to be created and of tourists to be attracted etc.

Decision of the Government of the Russian Federation No. 470 of July 31, 2006 on Amending the Regulations on the Ministry of Economic Development and Trade of the Russian Federation and the Regulations on the Federal Agency for Special Economic Zone Administration

The amendments lay a legal foundation for the activities of the Ministry of Economic Development and Trade of the Russian Federation and the Federal Agency for Special Economic Zone Administration in terms of regulating the formation, operation and termination of tourism & recreation special economic zones, and the terms for pursuing entrepreneurial activities on the territories thereof.Apart from that, the Ministry of Economic Development and Trade of the Russian Federation has acquired the right to define a procedure for the administrative body of a special economic zone to transfer to a joint-stock company with 100% interest of the Russian Federation of the function of a state customer within the boundaries of the special economic zone for the preparation of area-planning documents and the creation of the engineering, transport, social, innovative and other infrastructures of the zone with federal and regional budget funds.The Federal Agency for Special Economic Zone Administration is to hand over the specifications for connecting to utility lines and the building permits received to the individual entrepreneurs and legal entities that carry out construction or re-construction in a special economic zone.

Letter of the Federal Tax Service No. ShT-6-03/688@ of July 7, 2006

Explanations are provided concerning certain issues relating to the application of the legislation on value added tax to the transactions envisaged by Item 1 of Article 164 of the Tax Code.When a foreign organisation provides the services of looking for and recruiting participants in a foreign state for participation in an international exhibition held by a Russian organisation in Russia then the territory of Russia is not deemed the "place of provision" of these services, and accordingly these services are not subject to value added tax.The foreign organisations which have not registered with tax bodies as taxpayers and which acquire goods (works and services) on the territory of the Russian Federation from the foreign persons not registered with tax bodies are not deemed tax agents for value added tax purposes, and accordingly, they have no duty to calculate, withhold and remit to the budget the tax on income amounts remitted to a seller. When an organisation which provides the services of passenger and luggage carriage sells air tickets through an agent's network the tax base for value added tax purposes is to include the whole sum received by the agent for the air tickets sold on instructions of the organisation including the amount of agent's fee.

Decision of the Chief State Sanitary Inspector of the Russian Federation No. 16 of July 19, 2006 on Putting Into Force Hygienic Guidelines GN 2.1.6.1986-06

Hygienic Guidelines GN 2.1.6.1986-06 "Tentative Safe Levels of Exposure to Pollutants in the Atmospheric Air of Inhabited Localities" are issued to supplement Hygienic Guidelines GN 2.1.6.1339-03 " Tentative Safe Levels of Exposure to Pollutants in the Atmospheric Air of Inhabited Localities". They establish the maximum admissible concentration values for certain pollutants in the air of an inhabited locality which are safe for human beings.These guidelines are used to resolve preventive supervision issues, substantiate the standards governing the elaboration of health-rehabilitation measures for protecting the atmospheric air of designed, re-constructed and pilot small-scale production facilities.The Hygienic Guidelines enter into force as of August 15, 2006.Registered by the Ministry of Justice of the Russian Federation, registration No. 8129 of July 31, 2006.

Letter of the Federal Tax Service No. VE-6-04/727@ of July 25, 2006 on the Taxation of Medical Staff Salary Rise

The salary rise for general practice medical doctors (family doctors), district physicians and district paediatricians, and also for the nurses of general practice doctors (family doctors), district physicians and district paediatricians payable in accordance with Decision of the Government of the Russian Federation No. 851 of December 30, 2005 is deemed an income subject to personal income tax.

Letter of the Ministry of Finance of the Russian Federation No. 03-06-05-02/06 of July 7, 2006

It sets out the position of the Ministry of Finance concerning the determination of the date of filing of an application for registering a taxable object subject to gambling tax in the form of a postal dispatch. According to the Ministry the date of filing of such application with a tax body is the sixth day from the date of dispatch.

Letter of the Department of Taxation and Customs Tariff Policies of the Ministry of Finance of the Russian Federation No. 03-03-04/1/554 of July 3, 2006

The organisation being a seller of an immovable property item starts to have the duty to pay organisation's profit tax as of the time when the item is transferred to a buyer under a fixed-asset acceptance certificate (invoice) and when documents are submitted for the purpose of state registration of the rights to the immovable property and of transactions in such property, irrespective of the date of state registration of the property and of the transactions in it.

Decree of the President of the Russian Federation No. 842 of August 4, 2006 on the Procedure for Forming Public Councils under the Federal Ministries, Federal Services and Federal Agencies Directed by the President of the Russian Federation, and under the Federal Services and Federal Agencies Being under the Jurisdiction of These Federal Ministries

These public councils are formed under Article 20 of the Federal Law on the Public Chamber of the Russian Federation. Public councils may be set up by the heads of relevant federal executive governmental bodies on the proposal of the council of the Public Chamber of the Russian Federation. A council is set up within two months after a notice to this effect is sent by the head to the council of the Public Chamber of the Russian Federation.The powers and procedure for the operation of a public council, and also the procedure for the formation thereof are defined by regulations confirmed by a legal act of the relevant federal executive governmental body.The persons which cannot be members of the Public Chamber of the Russian Federation cannot become members of the public councils. The members of a public council shall serve on a voluntary basis.

Decree of the President of the Russian Federation No. 763 of July 25, 2006 on the Allowance of Money for Federal State Civil Servants

Rates are set for monthly salaries and monthly monetary incentives for all categories of federal state civil servants in compliance with the federal state civil service offices they occupy, as well as the rank pay, effective from August 1, 2006.Thus, the official salary of 7,200 roubles and the monthly monetary incentive of 14-fold salary are set for Head of the Administration of the President of the Russian Federation, the official salary of 6,450 roubles and the monthly monetary incentive of 13.6-fold salary for an Assistant to the President, the salary of 3,800 roubles and the monetary incentive of 2.5-fold salary for a leading specialist of the Administration of the President of the Russian Federation.No monthly monetary incentive is set or paid to the federal state civil servants occupying federal state civil service offices in a state body located abroad.A monthly extra pay on top of official salary is established for special civil service conditions depending on the group of positions: from 150 to 200% of salary for the top group of civil service positions, and up to 60% for the lowest group. Amendments are made to the Decree of the President of the Russian Federation on the Procedure for Conferring and Preserving Diplomatic Ranks and on the Procedure for Setting a Monthly Diplomatic Rank Pay in Addition to Official Salary whereby the diplomatic rank pay that existed as a monthly official salary mark-up is made an independent monthly diplomatic rank salary which together with official salary makes up the monthly allowance of money of a diplomat.The Decree enters into force as of August 1, 2006.

Order of the Federal Service on Tariffs No. 168-e/3 of August 1, 2006 on Endorsing Caps on the Maximum Admissible Variation in Tariffs for the Goods and Services of Utility Organisations with Account Taken of Mark-ups for Tariffs for Goods and Services of Utility Organisations, Caps on Indices of Variation in Citizens' Payment for Residential Premises and Caps on Indices of Variation in Citizens' Payment for Utility Services, and Also Caps on Tariff Levels for Thermal Energy Save the One Produced by the Power Plants Generating Both Electric and Thermal Energy for the Year 2007

Caps are established on admissible variation in tariffs for the goods and services of utility organisations with account taken of mark-ups for the said tariffs on the average for subjects of the Russian Federation for the Year 2007 for Kursk Region (113.5%), Tula Region (113.3%), Pskov Region (112.0%), Republic of Ingushetia (112.0%), Karachai-Cherkess Republic (112.7%), Chechen Republic (110.0%), Chuvashia (108.0%), Buryatia (106.5%), Altai Kray (110.0%), Yakutia (111.0%) and Maritime Kray (110.0%).Caps on tariff levels for thermal energy except for the one produced by the power plants generating both electric and thermal energy on the average for subjects of the Russian Federation are established on the level determined on the basis of the maximum growth for the Year 2007 and the average tariff for the subject calculated on the basis of the tariffs effective for the said organisations as of December 31, 2006.Given the unchanged set and scope of services provided, caps are established on the variation in citizens' payment for residential premises and on the rate of citizens' payment for utility services with account taken of the ratio of the payment to the costs of housing maintenance and repair and the costs of provision of utility services for the said subjects of the Russian Federation.Registered by the Ministry of Justice of the Russian Federation, registration No. 8137 of August 3, 2006.

Order of the Federal Service on Tariffs No. 166-e/1 of August 1, 2006 on Caps on Electric and Thermal Energy Tariffs for the Year 2007

Caps are established on the minimum and maximum levels of tariffs for the electric energy supplied to consumers, on the average for the subject of the Russian Federation, without differentiating by the group of consumers, voltage level, annual duration of using a declared power rating, zone (hours of the day) and calendar breakdown for the Year 2007.Also caps are set, taking effect in 2007, on the minimum and maximum tariff levels for the thermal energy produced by the power plants generating both electric and thermal energy, on the average for the subject of the Russian Federation, without differentiating by the group of consumers, type of heat carrier, steam parameters, centralised heat-supply system and calendar breakdown.Apart from that, caps are imposed on the minimum and maximum tariff levels for electrical energy supplied to the public in centralised and decentralised power-supply zones for the subject of the Russian Federation for the Year 2007.Tariffs for the electricity supplied to the public as exceeding the set social power consumption quantities have to be set at economically-substantiated levels.Registered by the Ministry of Justice of the Russian Federation, registration No. 8136 of August 3, 2006.

Decision of the Government of the Russian Federation No. 472 of August 4, 2006 on the Financing of Monthly Compensations for the Unemployed Women with Children Aged Thee and Below after Dismissal Due to the Winding Up of an Organisation

The unemployed women which have children aged three and below and which have been dismissed due to the winding up of an organisation are entitled to receive monthly compensations remitted to deposit accounts opened with Sberbank of Russia or through federal postal organisations. Decisions on ordering the compensations are taken by the social protection bodies of subjects of the Russian Federation.The monthly compensations of 50 rouble each are payable to persons who are on a leave of absence for taking care of a child until the child reaches the age of three. The disbursements are ordered from the day when the leave is granted if the application for it is made within six months after the granting of the leave. If the application is filed after that deadline the disbursable amounts are ordered and paid out for time elapsed but in any case not for more than six months after the date of the application.

Direction of the Central Bank of the Russian Federation No. 1708-U of August 4, 2006

Effective August 7, 2006, fixed interest rates are established for the deposit transactions carried out by the Bank of Russia by means of the system Reuters-Dealing and the MICEX Electronic Sale System on the standard terms "tom-next", "spot-next", "on-call" at 2% per annum and on the standard terms "one week", "spot-week" at 2.5% per annum.

Letter of the Central Bank of the Russian Federation No. 105-T of August 1, 2006 on Wolfsburg Group Documents

It is announced that a manual has been published for the elaboration of an approach based on risk assessment for the purpose of managing the risks of money laundering relating to the operations of financial organisations in the countering of money laundering. The manual comprises the basic principles on which financial organisations are to elaborate a policy for assessing the emergence of a money laundering risk in their activities.This document may be used by credit organisations to enhance the effectiveness of their in-house control systems to counter money laundering and the financing of terrorism.







Ruling of the Constitutional Court of the Russian Federation No. 187-O of May 11, 2006 on the Complaint of the Citizen Vyacheslav Viktorovich Naumchik Concerning the Violation of His Constitutional Rights by the Provisions of Items 2 and 3 of Article 3 of the Federal Law on the Provision of State Pensions in the Russian Federation

The applicant, a military retiree, has appealed against the norm of law whereby the citizens who are simultaneously entitled to different pensions may be provided with one pension of their choice, and whereby the circle of the persons who may simultaneously receive two pensions is defined. According to the applicant, the norm he argues against does not allow military retirees to receive both a long-service pension and the old-age pension they have earned according to the insurance length of service required for getting it. The Constitutional Court has noted that the existing impossibility for the military retirees working under a labour contract to receive -- without waiver of their right to a military pension -- an insurance coverage with account taken of accumulated insurance contributions eliminates the raison d'etre of the pension insurance system which, given these conditions, becomes nothing more than an institution intended for seizing money. The disputed norms, in as much as they extend compulsory pension insurance to the military retirees working under labour contracts without envisaging an appropriate legal mechanism to guarantee the establishment of the insured portion of labour pension with account taken of the contributions accumulated on their personal accounts in the Pension Fund together with the pension they receive in line of state pension system, become ineffective and inapplicable.The federal legislator is to make a provision of a legal mechanism for protecting military retirees and to make sure it is put into force by January 1, 2007.

Ruling of the Constitutional Court of the Russian Federation No. 167-O of May 12, 2006 on the Complaint of the Citizen Vladimir Sergueyevich Kirillov against the Violation of His Constitutional Rights by Item 1 of Article 15 of the Customs Code of the Russian Federation

The Constitutional Court recognised that the owners of motor vehicles that have not been cleared by the customs may dispose of them without any limitations whatsoever, unless a customs body proves that the owner of the vehicle had to know that he was buying an item that was not properly cleared by the customs. The occasion for such decision was an application of a citizen who disputed the constitutionality of Item 1 of Article 15 of the Customs Code used as ground for dismissing his claim for deeming illegal the actions of the State Road Traffic Safety Inspectorate which has cancelled the registration of a vehicle and seized the vehicle certificate on the ground that an inspection revealed that formalities had not been properly completed for the disputed vehicle. According to the applicant, the disputed norm allows customs bodies and the bodies of the State Road Traffic Safety Inspectorate to limit the rights of the persons not deemed participants in customs legal relationships to use, and dispose of, property items they own by means of refusing to issue a vehicle certificate for a motor vehicle that has not passed customs processing. The court stressed that persons which as of the time of acquisition of motor vehicles did not know or were not supposed to know about the illegal nature of the vehicles' entry in the territory of Russia cannot be deemed responsible for the customs formalities required for the motor vehicles, including customs payments, since as of the time of their entry in the territory of Russia they did not have any relationships relating to the said vehicles. Accordingly, for such persons the effective customs legislation does not preclude the possibility for exercising the legal capacity of an owner in respect of the motor vehicles they legally acquired. Thus, the disputed legal provision in the system of effective customs legislation does not preclude to recognise the persons which as of the time of acquisition of motor vehicles on the territory of the Russian Federation did not know and were not supposed to know about the vehicles' having not passed customs processing in the established procedure as fully-competent owners of the motor vehicles they acquired.In this case, the norm of the Customs Code per se cannot serve as ground for deeming invalid a contract of purchase/sale and for depriving the buyer of his right of ownership.



Order of the Ministry of Regional Development of the Russian Federation No. 83 of July 13, 2006 on Endorsing the Methodology for Calculating Gas Consumption Rates for the Public when No Gas Meters Are Used

The Methodology is approved as being intended for calculating natural gas consumption rates for the public in case when no gas meters are used, and also when gas meters are out of order or after the expiry of an inter-inspection period.The Methodology is to be applied by executive governmental bodies of subjects of the Russian Federation in the assessment of natural gas consumption rates for the public. The rates (volume) of natural gas household consumption are established by the type of use, i.e. cooking; boiling water for household and sanitary-hygienic purposes (including laundering) when there is no centralised hot-water supply: if there is gas-powered water-heater, if there is no such heater; individual (flat) heating of residential premises (residential houses, flats and rooms); heating bath-houses, greenhouses, garages; maintaining animals (horses, cows, pigs, sheep, goats and poultry) in persons' auxiliary farms (preparing cattle-feed, heating water for drinking and sanitation).Details are defined of the calculation of consumption rates by the type of use.Gas consumption rates for cooking and water heating are established in cubic metres per person per month. Gas consumption rates for the heating of residential premises are set in cubic metres per square metre of heated area or per cubic metre of heated volume.If on residential premises there exist several types of gas use the natural gas consumption volumes calculated on the basis of relevant rates shall be added up. The rates are calculated on the basis of an even distribution of gas consumed over the months of the year.The natural gas consumption rates for the public are calculated for each region with due regard to its natural, climatic, demographic and socio-economic features.Certain documents used for calculation purposes are provided as exhibits: Annual Heat Consumption Rates for the Public for Cooking and Water-Heating Purposes; Territorial Coefficients for Annual Heat Consumption Rates for Cooking and Water-Heating Purposes; Average Volume Planning Indicators for Residential Buildings (Houses) for Calculating Gas Consumption Rates for Heating Purposes; The Distribution in the Housing Facilities of a Region of Characteristic Groups of Residential Buildings (Houses) with Natural Gas Consumption for Individual (Flat) Heating; Climatic Parameters for Calculating Natural Gas Consumption Rates for Heating Purposes; Algorithm for Calculating a Conditional Heat-Transfer Coefficient with Regard to Heat Losses through Infiltration and Ventilation; List of Raw Data and of the Results of Rate Calculations.Registered by the Ministry of Justice of the Russian Federation, registration No. 8115 of July 27, 2006.

Decision of the Government of the Russian Federation No. 479 of August 10, 2006 on Amending the Regulations on the Federal Tax Service

The scope of duties of the Federal Tax Service now encompasses the running of a comprehensive state automated information system intended to record the output and circulation volumes of ethyl alcohol, alcoholic products and alcohol-containing products. Accordingly, the Service now has broader powers in the field of control and supervision over the filing of declarations of output and circulation volumes of ethyl alcohol, alcoholic products, alcohol-containing food products, alcohol-containing non-food products with ethyl-alcohol content of over 40% of finished product volume and the ethyl alcohol volumes used to produce alcoholic products, alcohol-containing products as well as the actual output and circulation volumes of ethyl alcohol, alcoholic products and alcohol-containing products.For the purpose of exercising the powers vested therein, the Federal Tax Service carries outs inspections of the organisations engaged in the production of, and trading in, ethyl alcohol, alcoholic products and alcohol-containing products to verify their compliance with the licensing standards set by the legislation on the state regulation of the production and circulation of ethyl alcohol, alcoholic products and alcohol-containing products.

Letter of the Department of Taxation and Customs Tariff Policies of the Ministry of Finance of the Russian Federation No. 03-03-04/2/188 of August 3, 2006

Banks are entitled to include the following in the costs deemed deductibles in the calculation of organisation's profit tax: VAT amounts paid to suppliers on goods (works and services) acquired. All economically-substantiated costs incurred by the bank's employees abroad are written off as expenses in a tax base calculation according to taxation record data on the basis of source documents appropriately drawn up. If, upon the expiry of a certain period of time, foreign tax bodies demand source documents for the purpose of refunding a VAT amount levied earlier the bank has the right to send the originals thereof to them. Here, Russia's tax bodies must accept copies of the said source documents attested by a notary, as substantiation documents.The VAT amounts presented by suppliers on services acquired by the bank must be taken into account in the tax (accounting) period in which the duty to pay VAT emerged according to the date of drawing up the source documents (the date of settlements of accounts according to contracts concluded), with no regard to the date of actual payment of the tax. When VAT is refunded by foreign tax bodies the tax return for the purposes of profit tax on the profit of the accounting period in which the said expenses (including VAT) have been taken into account in the tax base calculation has to be adjusted accordingly.

Letter of the Department of Taxation and Customs Tariff Policies of the Ministry of Finance of the Russian Federation No. 03-06-01-04/151 of August 3, 2006

If a construction project whose initial value is assessed as of the date of transfer of documents for the purpose of state registration of rights of ownership has been delivered under a certificate of acceptance for commissioning and an organisation is actually pursuing an economic activity on it, this facility has all the features of a fixed asset established by the Accounting Regulations "Fixed Assets Bookkeeping" (PBU 6/01). Such facility is also classified as a fixed asset and a decision as to its inclusion in bookkeeping account 01 "Fixed Assets" and in the taxable object for the purposes of organisation's property tax must not depend on the taxpayer's will but is rather determined by the economic essence of the facility.While selling immovable property items a seller cannot write a facility off the balance sheet and recognise proceeds from the sale thereof for bookkeeping purposes before the transfer of the rights in the facility, and therefore the fact of state registration of rights is deemed ground for putting the facility into the group of immovable property items, given the availability of an initial fixed asset value formally recognised. The transfer of the facility into the fixed assets group is deemed ground for deeming it a taxable object for the purposes of organisation's property tax.

Decision of the Government of the Russian Federation No. 476 of August 9, 2006 on the Formation of the Public Joint-Stock Company "Russian Investment Fund for Information & Communication Technologies"

The exclusive subject matter of the fund's activities is investing in the assets of organisations operating in the field of information & communication technologies. Up to 100 million roubles ($3 million) may be allocated for each investment project.Three phases are envisaged in the fund's development depending on the degree of the state's interest in its authorised capital. In Phase 1, 100% of the fund's shares are under federal ownership, with 1,450 million roubles being used as contribution from the Investment Fund. Here, upon the completion of the fund's formation its authorised capital is going to rise through a supplementary issue of shares by public subscription.Phase 2 will see in 2009 the alienation of the fund's shares under federal ownership, with the stake of the Russian Federation being retained at 25% plus one share.In Phase 3 in 2010 the shares of the public joint-stock company which are under federal ownership are going to be alienated without the preservation of the stake of the Russian Federation in the authorised capital of the fund.Also, an opportunity is provided for financing information & communication technology projects after the share of federally-owned ordinary registered shares falls to 51%.

Letter of the Department of Taxation and Customs Tariff Policies of the Ministry of Finance of the Russian Federation No. No. 03-02-07/1-203 of August 1, 2006

The Tax Code neither has a provision for overturning a decision of a tax body suspending transactions on bank accounts nor for a bank's returning such a decision to the tax body due to the commencement of winding up proceeding in respect of the bank's client.The bank is not entitled to revoke at its own discretion a decision of a tax body on suspending transactions on bank accounts of a taxpayer being a client of the bank and return the decision to the tax body.

Letter of the Department of Taxation and Customs Tariff Policies of the Ministry of Finance of the Russian Federation No. 03-06-02-02/102 of August 1, 2006

Explanations are provided for some issues relating to the procedure for realising deductibles for the purposes of land tax.The tax base for the purposes of land tax is reduced by the 10,000-rouble deductible per taxpayer on the territory of one municipal formation (or the federal-significance cities of Moscow and St. Petersburg) in respect of a land plot under the ownership, permanent (in perpetuity) use or life inheritable possession of certain categories of taxpayers. If a taxpayer (including an individual entrepreneur) entitled to have the above privilege has several land plots located on the territory of one municipal formation tax base reduction must take place in respect of only one of these plots. The taxpayer is to chose at his own discretion the land plot for which the tax base will be reduced.If a taxpayer entitled to have the privilege has one land plot each in several municipal formations tax base reduction is to take place for each of the plots.As for a land plot under share ownership the deductible is only applicable to the tax base corresponding to the portion of the land plot owned by the taxpayer having a right to have his tax base reduced.The persons having land plots by the right of ownership, permanent (in perpetuity) use or life inheritable possession when the land plots are leased out remain payers of land tax, and accordingly, retain the right to the tax base deductible.

Regulations of the Central Bank of the Russian Federation 2006 ã. N 290-P of July 4, 2006 on the Procedure for the Bank of Russia's Issuing Permits to Credit Organisations for Having Affiliates on the Territory of a Foreign State

A licensing procedure is established for credit organisations to establish their affiliates on the territories of foreign states and to acquire the status of a basic company for operating non-resident legal entitles in which it can determine the decisions taken by the managerial bodies thereof.The permit may be issued if the credit organisation files a permit application, and if it meets certain requirements. For instance, such organisation must hold a general licence and it has to have been operating for at least three years since its state registration, to have its owner's equity (capital) in an amount of at least equal to 5 million euros, to have no debt owing the budget or the Bank of Russia. As the set of documents filed by the organisation is being examined it has to go through six structural units of the Bank of Russia.The Bank of Russia takes its decision on the issuance of the permit by taking into account the economic substantiation of the application, i.e. the prospects of a long-term operation of the affiliate as a financially-viable organisation. The total term of examination of these documents by the Bank of Russia cannot exceed three months after the registration of the application with a territorial institution of the Bank of Russia. The Regulations do not contain norms concerning the obtaining of new permits for affiliates that have been earlier instituted on the territory of a foreign state.The Regulations enter into force upon the expiry of ten days after the official publication thereof in Vestnik Banka Rossii.Registered by the Ministry of Justice of the Russian Federation, registration No. 8144 of August 11, 2006.

Order of the Federal Service on Financial Markets No. 06-76/pz-n of July 13, 2006 on Endorsing the Regulations on the Requirements Applicable to the Procedure for Committing Certain Actions in Connection with the Acquisition of over 30 Per Cent of Shares of Public Joint-Stock Companies

The Regulations establish a procedure for the filing of documents with the federal executive governmental body charged with securities market matters in connection with the acquisition of over 30% of shares of a public joint-stock company.Standards are established for the following documents: a voluntary offer to acquire shares and/or the serial securities convertible into such shares as conferring the right of vote at a general meeting of the shareholders having voting rights on all issues within its competence; a compulsory offer to acquire the serial securities of the public joint-stock company which confer the said right; a report on the results of acceptance of a voluntary or compulsory offer; a notice of the right to demand repurchase of serial securities if a person buys over 95% of the shares of the public joint-stock company; a demand on repurchase of serial securities of the public joint-stock company on the demand of a person which has acquired over 95% of the shares of the public joint-stock company; and a report on the results of acceptance of a voluntary or compulsory offer.A list is provided of the documents that have to be filed with the federal executive governmental body charged with securities market matters together with each of the said documents.Documentation may be filed either on paper or magnetic media, or in an electronic form.Also, rules are defined for disclosing information on the filing of a voluntary or compulsory offer concerning the acquisition of serial securities traded at public sales arranged by organisers of trading in the securities market, and the contents of such voluntary or compulsory offer. This information is disclosed by means of publication of a relevant announcement. Registered by the Ministry of Justice of the Russian Federation, registration No. 8143 of August 11, 2006.

on the Procedure for Drawing Up Documents when an Application for Registration of a Legal Entity or Individual Entrepreneur Is Filed

The Supreme Court of the Russian Federation has recognised as invalid the rule set out in the Requirements to the Drawing Up of the Documents Used in the State Registration of Legal Entities, and Also of Natural Persons as Individual Entrepreneurs approved by Decision of the Government of the Russian Federation No. 439 of June 19, 2002 according to which the documents for the purposes of registration of a legal entity have to be submitted to the registration body directly by the applicant. The decision has been issued on the occasion of an application of a person whose documents for organisation registration purposes have not been accepted from the person's representative holding a power of attorney, with reference being made to the disputed item of the Requirements.It is noted, that the Federal Law on the State Registration of Legal Entities and Individual Entrepreneurs establishes two methods for the filing of documents for state registration purposes: the direct delivery of the documents at the whereabouts of the registration body or the sending of the documents by post. Other document filing methods may be defined by the Government of the Russian Federation. Still, the disputed item of the Requirements does not establish another method for filing the documents, but it rather provides an explanation for a method established already. It gives a definition of the need for filing documents for registration purposes not only at the place where the registration body is located as indicated by the Law but it also vests the duty to do so directly in the applicant, which does not arise from the Law. Therefore, the Government of the Russian Federation is not entitled to limit in comparison with a federal law the citizens' right to file documents with a registration body directly by themselves, and deprive them of their right to commit such actions through a representative. Meanwhile, the applicable civil legislation contains provisions testifying that citizens may commit such actions through their representatives.

Decision of the Government of the Russian Federation No. 488 of August 13, 2006 on Endorsing the Rates of Import Customs Duties on Partially-Processed Fats and Oils, and on Margarine Products and Spreads

The effective term of the import customs duty rate (20% of customs value but in any case not below 0.2 euro per kilogram) for partially-processed fats and oils, and for margarine products and spreads introduced by Decision of the Government of the Russian Federation No. 599 of October 6, 2005 as nine months (from November 11, 2005 through August 10, 2006) has been extended sine die. The Decision enters into force upon the expiry of one month after its official publication.

Decision of the Government of the Russian Federation No. 487 of August 13, 2006 on Endorsing the Rate of Import Customs Duty on Non-Roasted Coffee

Zero import customs duty rate is established on a permanent basis for non-roasted coffee (the following codes according to the CC FEA of Russia: 0901 11 000 1, 0901 11 000 2, 0901 11 000 9, 0901 12 000 1, 0901 12 000 2, 0901 12 000 9).The said rate has been earlier confirmed for a nine-month term (from January 31 through October 30, 2006) by Decision of the Government of the Russian Federation No. 814 of December 28, 2005. The Decision enters into force as of October 31, 2006.

Decision of the Government of the Russian Federation No. 486 of August 13, 2006 on Endorsing the Rate of Import Customs Duty on Uncrushed or Crushed, Raw or Roasted Cacao

Zero import customs duty rate is established on a permanent basis for uncrushed or crushed, raw or roasted cacao (code 1801 00 000 0 according to the CC FEA of Russia). This rate has been earlier confirmed for a nine-month term (from January 22 through October 21, 2006) by Decision of the Government of the Russian Federation No. 771 of December 17, 2005.The Decision enters into force as of October 22, 2006.

Decision of the Government of the Russian Federation No. 503 of August 15, 2006 on the Federal Service of Financial and Budget Enforcement



The sphere of reference of the Federal Service of Financial and Budget Enforcement shall include adoption of acts terminating the issued permissions to residents, except for the permissions issued by the Bank of Russia or its territorial institutions, in cases envisaged in the currency legislation of the Russian Federation. The pertinent issue is Article 28 of the Federal Law No. 173-FZ of December 10, 2003 on the currency regulation and currency control defining the particulars of carrying out of currency operations, opening of accounts in the banks outside the territory of the Russian Federation and operations on these accounts, failure to transfer foreign currencies on the accounts of residents in the authorised banks in compliance with the permissions obtained before the entry into force of the mentioned Federal Law.

Decision of the Government of the Russian Federation No. 500 of August 13, 2006 on the Procedure of Determination of the Customs Cost of Commodities Moved across the Customs Border of the Russian Federation



Specifies the rules of determination of the customs cost of imported commodities in cases of: their illegal transfer across the customs border of the Russian Federation; their damage because of an accident or force majeur circumstances; as well as commodities exported from the customs territory of the Russian Federation.

The methods and procedure of determination of their customs cost are provided for the mentioned commodities.

The Decision is entered into force one month after the day of its official publication.

Decision of the Government of the Russian Federation No. 498 of August 13, 2006 on the Amendment to the Decision of the Government of the Russian Federation No. 560 of September 8, 2003 on the Endorsement of Insurance Tariff Rates in Obligatory Insurance of Liabilities of the Specialised Depositary and Management Companies, Their Structure and Procedure of Their Application in the Determination of the Amount of Insurance Premium under the Contract of Obligatory Insurance of Liabilities



Reduces two times the amount of the insurance tariff rate for obligatory insurance of liabilities of the specialised depositary to the Pension Fund and management companies for the violation of the contract for the services of the specialised depositary for the insurance period of 1 year. The mentioned tariff rate now makes 0.5% of the insured amount.

Besides, reduces also two times the amount of the insurance tariff rate for obligatory insurance of liabilities of the management companies to the Pension Fund for the violation of the contract of trust control of resources of accumulated pensions for the insurance period of 1 year.

Decision of the Government of the Russian Federation No. 496 of August 13, 2006 on the Invalidation of the Decision of the Council of Ministers – the Government of the Russian Federation No. 895 of September 9, 1993



The invalidated Decision endorsed the rules of sale to citizens of durable commodities on credit and listed the durable commodities recommended for sale to citizens on credit.

Decision of the Government of the Russian Federation No. 489 of August 13, 2006 on the Endorsement of the Rates of Import Customs Duties for Individual Types of Groundnuts



Introduces on the permanent basis the zero rates of the import customs duties for individual types of groundnuts earlier introduced by the Decision of the Government of the Russian Federation No. 820 of December 28, 2005 for 9 months (from January 31 to October 30, 2006).

The Decision is entered into force from October 31, 2006.

Decision of the Government of the Russian Federation No. 491 of August 13, 2006 on the Endorsement of the Rules of Maintenance of the Common Property in an Apartment House and the Rules of Changing of the Amount of Payment for the Maintenance and Repair of the Dwelling Space When the Services are Rendered and the Works Are Carried out in the Management, Maintenance and Repair of the Common Property in an Apartment House of Improper Quality and/or with Intervals in Excess of Specified Duration



The rules of maintenance of the common property in an apartment house shall regulate relations of maintenance of the common property possessed as common shared property by the owners of dwelling space in an apartment house.

The rules define an approximate list of objects included in the common property: space of common use; roofs; outer bearing structures; equipment located in the apartment house inside or outside the rooms and servicing more than one dwelling and/or non-dwelling space (apartment); land plot under the apartment house; internal engineering systems of cold and hot water supplies and gas supplies; internal heating system; internal system of electric power supplies; other objects intended for servicing, operation and outfit of the apartment house.

The rules specify the requirements to the maintenance of the common property, procedure for current and overhaul repair, as well as the sources of financing of expenses for the maintenance of the common property.

The owners of the dwelling space must take measures immediately to remove the defects hazardous to the life and health of citizens, to preserve the property, which is confirmed with the order of the bodies in charge of the state control of use and preservation of the dwelling fund.

The owners of the dwelling space in the apartment house shall assume the burden of expenses of the maintenance of the common property in an apartment house.

The Decision endorses the rules of changing of the amount of payment for the maintenance and repair of the dwelling space when the services are rendered and works are carried out in the management, maintenance and repair of the common property in the apartment house with improper quality and/or with intervals longer than the specified duration.

The rules do not apply to relations pertaining to the payment of expenses of maintenance and repair of the common property by the owners of dwelling space in the apartment house being members of the partnership of owners of dwelling space, housing, housing construction cooperative or another specialised consumer cooperative.

The amount of payment for the maintenance and repair of the dwelling space is reduced in proportion to the number of full calendar days of the violation proceeding from the cost of the appropriate service or work in the composition of the monthly payment for the maintenance and repair of the dwelling space.

The amount of the mentioned payment may not be changed in cases of elimination of the hazard to the life and health of citizens, prevention of damage to their property, as well as the cases of force majeure circumstances.

The state cadastral registration of land plots housing apartment houses is provided without collection of payment from the owners of dwelling space until July 1, 2008.

Letter of the Federal Tax Service No. ShT-6-03/784@ of August 8, 2006 on the Sending of Information



If the taxpayer refutes the right of exemption from the value added tax for operations exempted from taxation under Item 3 of Article 149 of the Tax Code, the tax bodies should keep in mind that if the taxpayer decides to refute to apply the exemption for all operations of one of the subitems of Item 3 of Article 149, there is no reason to deprive the given taxpayer of the right to apply the exemption under other subitems.

The taxpayer carrying out operations envisaged in one of subitems of Item 3 of Article 149 of the Tax Code listing several types of operations and deciding to refute the exemption for one of such operations must refute the exemption for other operations of this item either.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-04-09/15 of August 7, 2006



According to the Ministry of Finance, the mentioning in the invoice of both the legal and the actual addresses is not in violation of the rules of filling of invoices, if the constituent documents show both of these addresses.

Letter of the Ministry of Public Health and Social Development of the Russian Federation No. 1556-12 of July 25, 2006



Explains the issue of publication and entry into force of the Federal Law No. 90-FZ of June 30, 2006 amending the Labour Code of the Russian Federation, as well as invalidating some of the acts of the USSR and some of the legislative acts of the Russian Federation.

In spite of the fact that the given Federal Law has been published in the journal Collection of Legislation of the Russian Federation on July 3, 2006, the official date of the publication according to the Ministry of Public Health and Social Development of Russia should be considered the date of its publication in Rossiyskaya Gazeta, i.e. July 7, 2006. Hence, the Federal Law is entered into force from October 6, 2006.

Decision of the Government of the Russian Federation No. 507 of August 17, 2006 on the Monetary Payments in 2006 to Doctors, Feldshers and Medical Nurses of Emergency Medical Aid of the Federal State Institutions of Public Health Supervised by the Federal Medical and Biological Agency



Extra financing from the federal budget for the year 2006 envisaged for the Federal Medical and Biological Agency of Russia are allocated to introduce monetary payments to the employees of emergency medical aid stations (divisions) of public health institutions supervised by the Federal Medical and Biological Agency of Russia.

The monetary payments shall be made from July 1, 2006 in the following amounts: Rbl 5,000 a month to doctors; Rbl 3.500 a month to feldshers (obstetricians); Rbl 2,500 a month to medical nurses.

The mentioned payments shall be made taking into account the regional coefficients to earnings specified for individual regions and localities.

Decision of the Government of the Russian Federation No. 504 of August 15, 2006 on the Licensing of Activities in Technical Protection of Confidential Information



Endorses a new Regulation on the licensing of activities in technical protection of confidential information. The technical protection of confidential information implies a complex of services rendered by legal entities and independent entrepreneurs to protect the mentioned information against unauthorised access, as well as against special impacts on such information to destroy it, change or block access to it.

The new Regulation extends the list of requirements to the candidates and the documents submitted to get the license. Defines the list of major violations of the license requirements. Reduces from 60 to 45 days the time limit for decision taking to issue or refuse to issue the license.

The licensing body as before is the Federal Service of Technical and Export Control. Effective period of the license is the same - 5 years.

The earlier available procedure of licensing of activities of technical protection of confidential information endorsed by the Decision of the Government of the Russian Federation No. 290 of April 30, 2002 is invalidated. The licenses for activities in technical protection of confidential information issued before the adoption of the given Decision shall remain in force until expiry.

Decision of the Government of the Russian Federation No. 497 of August 13, 2006 on the Licensing of Activities in the Sphere of Hydrometeorology and Adjacent Spheres, As Well As the Works of Active Interventions in Hydro Meteorological and Geophysical Processes and Phenomena



Endorses the new Regulations on the licensing of activities in the sphere of hydrometeorology and adjacent spheres, works in active interventions in hydro meteorological and geophysical processes and phenomena.

The Regulations provide the notions of the licensed types of activities, adjust requirements to candidates, define the list of major violations of the license requirements, specify the procedure of checking of completeness and authenticity of the documents submitted to get the license on the part of the licensing body.

The licensing body as before is the Federal Service of Hydrometeorology and Monitoring of the Environment. The previous effective period of the issued licenses - 5 years - is preserved.

The pervious Regulations on the licensing of activities in the sphere of hydrometeorology and adjacent spheres, as well as the works of active interventions in hydro meteorological and geophysical processes and phenomena endorsed by the Decision of the Government of the Russian Federation No. 324 of May 20, 2002 are invalidated.

Decision of the Government of the Russian Federation No. 493 of August 13, 2006 on the Endorsement of the Regulation on the Licensing of Activities in Production and Repair of the Means of Measurement



Defines the procedure of licensing of activities in production and repair of the means of measurement carried out by legal entities and independent entrepreneurs, as well as specifies the license requirements and terms for the candidates.

The licence for this type of activities is granted by the Federal Agency of Technical Regulation and Metrology for 5 years. Its effective period may be prolonged according to the procedure envisaged for the redrawing of the document confirming the presence of the license. Consideration of the application for licence, as well as its issue or redrawing of the document confirming the presence of the license is fee-paying.

Decision of the Government of the Russian Federation No. 490 of August 13, 2006 on the Licensing of Individual Types of Activities on the Sea and Internal Water Transport



Endorses the Regulations on the licensing of cargo and passenger transportation by the sea transport, internal water transport, on the licensing of activities in towage on the sea transport (except for the cases when such activities are carried out for own needs of the legal entity or independent entrepreneur), on the licensing of loading and unloading of hazardous cargo in sea ports and on the internal water transport defining the procedure of issue of licenses to legal entities and independent entrepreneurs for the mentioned types of activities, as well as the requirements to license holders.

The licensing is vested in the Federal Service of Enforcement in the Sphere of Transport. The licenses are granted for 5 years. They may be prolonged according to the procedure envisaged for the redrawing of the license.

Decision of the Government of the Russian Federation No. 508 of August 17, 2006 on the Endorsement of the Rules of Processing by the Antimonopoly Body of Cases Initiated Because of the Signs of Violation of the Legislation of the Russian Federation on Advertising



The cases shall be initiated and processed by the Federal Antimonopoly Service and its territorial bodies pursuant to the facts of dissemination of promotion materials containing the signs of violation of the legislation of the Russian Federation on advertising, as well as the facts of adoption by the federal and regional bodies of executive power of acts completely or partly contradicting the legislation on advertising.

The Decision defines the jurisdiction of such cases, as well as the procedure of processing of applications, appeals and representations on the violation of the legislation on advertising. Provides a detailed procedure of initiation, processing of the case and decision taking.

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

Letter of the Federal Tax Service No. ShT-6-03/786@ of August 9, 2006



Explains individual issues pertaining to application of the zero rate of the value added tax.

In particular, in cases of replacement of defective exported commodities with quality ones, the taxpayer, to correct the taxable base and tax exemptions, must present an adjustment tax declaration. The taxation of the operation of supplies of the quality commodity placed under the customs regime of export in replacement of the defective one must be arranged using the zero tax rate on condition of submission of documents confirming the legality of application of the mentioned rate.

When the taxpayer returns defective commodity supplied to him, VAT amounts accepted for exemption on legal grounds in cases of import of the given commodity under the customs regime of release for free circulation must be restored for payment to the budget.

The Letter explains the procedure of confirmation of the right for the reimbursement for the cases of taxation at the 0% rate. Thus, the customs declaration is submitted in the package of documents confirming the reasons of application of the 0% tax rate only in cases of moving of commodities over the pipelines or electric power lines, rendering services directly associated with the transfer of commodities placed under the customs regime of international customs transit.

When selling the stores exported from the territory of the Russian Federation under the customs regime of moving of stores by sea vessels, the packet of documents confirming the legality of application of the zero VAT rate shall contain standard carrier documents or an import (export) declaration for the transport vehicle indicating the information on available stores (description and quantity) in the transport vehicle with the marks of the customs body at the place of exit of the transport vehicles from the customs territory of the Russian Federation confirming termination of the customs registration of the sea vessel with the date certified with the signature and personal numbered seal of the official of the customs body.

The Letter also provides explanations on the moment of determination of the taxable base for the cases of sale of works (services) directly associated with the transfer through the customs territory of the Russian Federation of commodities placed under the customs regime of international customs transit; procedure of application of tax exemptions.

Letter of the Federal Tax Service No. ShT-6-03/780@ of August 8, 2006



The Federal Tax Service of Russia prepared explanations for the I quarter of 2006 on issues pertaining to application of the Agreement on the principles of collection of indirect taxes for the cases of export and import of commodities, carrying out works, rendering services concluded between the Governments of the Russian Federation and the Republic of Belarus.

Explains, in particular, that the tax body may not refuse to put the stamp of import of commodities to the territory of the Russian Federation from the territory of the Republic of Belarus on the application if at the moment of submission of the documents, the packet lacked the certificate of origin of the commodity drawn up to form ST-1 simultaneously with the tax declaration. The certificate of origin of the commodity (form ST-1) is not indicated in the list of documents that, in compliance with the Regulation on the procedure of collection of indirect taxes and the mechanism of control of their payment when moving commodities between the Russian Federation and the Republic of Belarus, must be presented by taxpayers to the tax body together with the tax declaration.

Explains also that the organisation may submit to the tax body an adjusted application of the import of commodities and payment of indirect taxes if it revealed mistakes in the earlier submitted applications. The application may be presented both simultaneously with the adjustment tax declaration for indirect taxes at the import of commodities to the territory of the Russian Federation from the territory of the Republic of Belarus and without submission of the declaration.

The offsetting of overpaid VAT amounts and/or redirection of the VAT amount due for reimbursement for the commodities (works, services) sold on the territory of the Russian Federation as future payments or redemption of VAT arrears due for payment at the import of commodities to the territory of the Russian Federation from the territory of the Republic of Belarus is not provided.

Order of the Government of the Russian Federation No. 1082-r of August 4, 2006 <br>

Endorses the concept of the federal targeted program "Development of the Judicial System of Russia" for the years 2007-2011 adopted in execution of the messages of the President to the Federal Assembly.

The main tasks of the program are providing for the openness and transparency of the judicial system, improvement of confidence in the judicial system, in particular, through improvement of efficiency and quality of processing of cases, creation of necessary conditions for implementation of justice, providing for its affordability, independence of judges, improvement of the level of execution of judicial acts.

To solve the mentioned tasks, it is suggested to introduce information technologies in the work of the judicial system, create reception rooms in all regional courts of general jurisdiction, thus providing for affordability of the judicial system for the citizens, reducing waiting lines in the courts, providing opportunities to submit applications and get information during the whole of the working day, reducing contacts of judges with the parties before the case is processed, excluding conditions for corruption.

To optimise the load for judges, it is suggested to rearrange the jurisdiction of cases between the justices of the peace and the courts of general jurisdiction of the regional level, to define in the courts of arbitration the categories of cases where the cassation and enforcement appealing is not permitted, in other categories of cases, to exclude opportunities of appealing against decisions of the first instance court according to cassation procedure without preliminary appellate. An extra-judicial procedure of solving of disputes will also be introduced.

To provide for independence and objective judgement of court rulings, exclude opportunities of corruption, it is suggested to introduce a prohibition for participation in the cases of lawyers being spouses, close relatives or connections of the judge within the jurisdiction of the court. The judges will be obliged to declare their incomes, property and liabilities including the joint property of spouses.

New buildings will be put in operation to house the courts, monetary resources will be allocated to provide housing to judges and employees of the judicial system.

To speed up execution of judicial acts, it is suggested to create a joint information system of the courts and the Federal Bailiff Service.

The state coordinator of the program is the Ministry of Economic Development of Russia, the state orderers are the Constitutional Court of the Russian Federation, Supreme Court of the Russian Federation, Higher Arbitration Court of the Russian Federation, Judicial Department of the Supreme Court of the Russian Federation, Ministry of Justice of Russia, Federal Bailiff Service of Russia and the Ministry of Economic Development of Russia.

The limiting (forecasted) volume of financing of the program at the expense of resources of the federal budget makes Rbl 48,465.3 million.

Direction of the Central Bank of Russia No. 1700-U of July 4, 2006 on the Invalidation of Individual Normative Acts of the Bank of Russia <br>

From the day of entry into force of the Regulation of the Central Bank of Russia No. 290-P of July 4, 2006, invalidates the Regulation of the Bank of Russia No. 27-P of April 29, 1998 and the Direction of the Bank of Russia No. 222-U of April 29, 1998 defining the procedure of granting permissions of the Bank of Russia to authorised Russian banks to participate in the registered capital of credit organisations abroad.

The Direction is entered into force 10 days after the day of its official publication in the Herald of the Bank of Russia.

Decision of the Management Board of the State Corporation "Deposit Insurance Agency" of August 10, 2006 (Protocol 47) on the Amendments to the Recommendations on the Procedure of Informing of Depositors by the Banks on Issues of Insurance of Deposits Endorsed by the Decision of the Management Board of the State Corporation "Deposit Insurance Agency" of June 30, 2005 (Protocol 48) <br>

The amendments are stipulated by the entry into force of the Federal Law No. 150-FZ of July 27, 2006 having introduced a stepwise (regressive) scale of reimbursement for the deposits envisaging a full reimbursement within Rbl 100,000 and a partial one when the amount is greater (90%, however, not greater than Rbl 190,000).

Telegram of the Federal Customs Service No. TF-1821 of July 31, 2006 <br>

Pursuant to the entry into force of the Federal Law No. 117-FZ of July 18, 2006 on the export of gas, envisaging the licensing of the exclusive right for export of gas, the customs registration of the exported gas from July 31, 2006 produced in all types of deposits of the hydrocarbon raw materials and transported in gaseous and liquefied condition (codes of the Foreign Trade Commodity Nomenclature of Russia 2709 00, 2711, 2901) shall be arranged in the presence of the license for the exclusive right for export of gas issued by the Ministry of Economic Development of Russia.

The requirements of the mentioned Federal Law do not apply to the export of gas produced under production-sharing agreements concluded before July 31, 2006.

Decision of the Government of the Russian Federation No. 513 of August 21, 2006 on the Endorsement of the Method of Distribution of Subventions from the Federal Fund of Compensations Among the Subjects of the Russian Federation to Pay for the Housing and Communal Services to Individual Categories of Citizens, Social Support of Persons Awarded with the Badges of the Honoured Donor of the USSR and the Honoured Donor of Russia and for the State Registration of Acts of Civil Status



According to the budget legislation of the Russian Federation and to execute budget obligations of the subjects of the Russian Federation and municipal formations financed at the expense of subventions from the federal budget, the Federal Fund of Compensations is formed in the federal budget. Subventions from the Federal Fund of Compensations are distributed among the subjects of the Russian Federation according to the method defined by the Government of the Russian Federation.

The endorsed method pertains to distribution of subventions from the Fund among the subjects of the Russian Federation to pay for the housing and communal services to individual categories of citizens, social support of persons awarded with the badges of Honoured Donor of the USSR and the Honoured Donor of Russia and for the state registration of the acts of civil status.

The method contains the formulas of calculation of subventions allocated for the mentioned purposes. Thus, the amount of subventions to cover the benefits of payment for the housing and communal services is calculated proceeding from the population of citizens entitled for the benefits in the subject of the Russian Federation, federal standard of the social norm of the area of dwelling space and the federal standard of the limiting cost of provided housing and communal services per square meter of the total dwelling space per month in the subject of the Russian Federation.

The Decision is entered into force from January 1, 2007.

Order of the Ministry of Economic Development of the Russian Federation No. 190 of July 14, 2006 on the Endorsement of the Method of Calculation of the Rent under the Lease Contracts for the State and/or Municipal Immovable Property (Buildings (Parts Thereof), Structures) Available on the Land Plots within the Territories of the Special Economic Zones of Technical Innovation and Tourist Recreational Type and the Method of Calculation of the Rent under the Lease Contracts for the Land Plots Located within the Boundaries of the Special Economic Zones



The methods specify the rules of calculation of the rent under the lease contracts for the state and/or municipal immovable property (land plots, buildings or parts thereof, structures) located within the boundaries of the territories of the special economic zones.

The lease contracts shall be concluded by the management bodies of the special economic zones with legal entities and independent entrepreneurs registered as residents of the special economic zones in the framework of the agreements on industrial production, technical innovation or tourist recreational activities.

The amount of the rent for each object of immovable property is determined independently.

Revision of the amount of the rent may be arranged no sooner than once a year taking into account the forecasted level of inflation envisaged in the law on the budget for the appropriate fiscal year, if the coefficients used to calculate the amount of the rent change, as well as in other cases specified in the legislation.

Registered in the Ministry of Justice of the Russian Federation on August 21, 2006. Reg. No. 8156.

Letter of the Federal Tax Service No. ShT-6-07/845@ of August 23, 2006 on the Sending of Information



From August 28, 2006, changes the procedure of registration of information on the circulation of ethyl alcohol, alcoholic and alcohol-containing products in the Joint State Automatic Information System. If the company does not have opportunities to transfer information over telecommunication channels, it may hand over this information to the tax inspection. The fact of the registration is considered to be the presence of information on the circulation of products in the database of the territorial tax body where the organisation is connected. The recipient organisation of the products may enter on charge the received products if they get the confirmation form registered in the territorial tax body from the organisation supplying the products.

Ruling of the Constitutional Court of the Russian Federation No. 162-O of June 13, 2006 on the Refusal to Accept for Consideration the Appeal of Citizen S.V.Baranova against Violation of Her Constitutional Rights by Item 28 of the Regulation on the Subsidies Provided to Pay for the Housing and Communal Services



Challenges the constitutionality of Item 28 of the Regulation on the subsidies provided to pay for the housing and communal services endorsed by the Decision of the Government of the Russian Federation No. 444 of August 30, 2004. According to the applicant, the introduced procedure of calculation of the aggregate family incomes of the recipient of the subsidy, when the spouse incomes are taken into account regardless of whether or not they live separately, is in violation of her constitutional rights.

In spite of the fact that the challenged Regulation has lost its force, and since the actual rules of providing subsidies to pay for the housing and communal services endorsed by the Decision of the Government of the Russian Federation No. 761 of December 14, 2005 contain the norm similar to the challenged one, the Constitutional Court of the Russian Federation, while refusing to accept the appeal for consideration, explained the following.

The main legal fact bringing about the mutual rights and duties of spouses is the state registration of their marriage in the bodies of registration of civil status, rather than the fact of living together. The essence of these rights and duties must be determined proceeding from the principle that family relations must be built on the basis of mutual aid and responsibility of all its members. If applied to relations of spouses, the mentioned principle is made more specific in the provisions of the Family Code of the Russian Federation imposing on them the duty to render aid to each other, including the material one (Item 3 of Article 31 and Item 1 of Article 89). Therefore, the introduced procedure of calculation of the aggregate family incomes of the recipient of the subsidy to pay for the housing and communal services taking into account the special legal status of spouses may not be regarded as violating the rights of citizens guaranteed by the Constitution of the Russian Federation.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-11-02/180 of August 17, 2006



Provides explanations on the procedure of application of the simplified system of taxation to requests of the tax bodies.

Since a new legal entity emerges at the creation of the legal entity (changing of the organisational and legal form), it is subject to the procedure of switchover to the simplified system of taxation envisaged for the newly created organisations. In this case, the newly emerging legal entity may choose another object of taxation.

As to the procedure of inclusion by taxpayers applying the simplified system of taxation in expenses the costs of commodities purchased for further sale, it is explained that in the determination of the taxable base for the tax pertaining to the application of the simplified system of taxation, expenses shall include the cost of purchased commodities paid by suppliers, sold and paid by the buyers.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/2/194 of August 18, 2006



Provides explanations on the taxation procedure for the profit tax from organisations in cases of transfer of securities on the gratuitous basis.

In the cases of transfer of property on the gratuitous basis, the taxpayer does not get any economic benefit. Therefore, there appears to be no income with him for profit taxation purposes. Expenses in the form of the cost of the property handed over on the gratuitous basis are not taken into account as taxpayer expenses either.

In the cases of donation of securities, there appears to be no income in the form of the market cost of securities handed over on the gratuitous basis for profit taxation purpose with the donor organisation. The duty to include the mentioned income in incomes for determination of the taxable base for the profit tax emerges with the recipient organisation.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/2/193 of August 16, 2006



Amounts of insurance reimbursement received by the insurant bank under the contract of voluntary insurance of risks of failure to return the credits are not listed in the incomes exempted from profit taxation envisaged in the Tax Code, therefore, such insurance reimbursement is included in incomes. In this case, amounts of debts handed over (transferred to the insurer by virtue of the law) are not included in expenses for profit taxation purposes with the bank.

Decision of the Government of the Russian Federation No. 518 of August 24, 2006 on the Endorsement of the Rules for Making Monthly Monetary Payments to Heroes of Socialist Labour and Holders of the Order of Labour Glory



Pursuant to the adoption of the Federal Law on the replacement of the benefits in kind to the Heroes of Socialist Labour and the holders of the Order of Labour Glory with the monthly monetary payments in the amount of Rbl 20,000, defines the procedure for making the mentioned payment.

The monthly monetary payment shall be arranged in response to the application submitted by the Hero of Socialist Labour or the holder of the Order of Labour Glory to the territorial body of the Pension Fund of the Russian Federation. The payment shall be made from January 1 of the year following the year of submission of the application. The application for the subsequent calendar year is submitted before October 1 of the current year. If the application is not submitted within the specified time limits, the benefits to the Hero of Socialist Labour and the holder of the Order of Labour Glory are provided in kind instead of the monetary payment.

Citizens of the Russian Federation having been awarded repeatedly with the title of the Hero of Socialist Labour and the holders of the Order of Labour Glory having been awarded with the title of the Hero of Socialist Labour are entitled for one monthly monetary payment.

The amount of the payment shall be subject to indexing according to the same procedure as the basic part of the labour pension.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/4/136 of August 16, 2006



Expenses for the purchase of foodstuffs, including alcoholic drinks, for official reception of a foreign delegation may be included in representation expenses for profit taxation purposes, but expenses of purchase of souvenirs for a foreign delegation are not included in representation expenses.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-11-04/2/166 of August 15, 2006



The lessor taxpayer applying the simplified system of taxation, regardless of the selected object of taxation, shall determine the amount of income received under the lease contract for immovable property proceeding from all receipts pertaining to payments for the sold services. In this case, amounts of reimbursement of communication services paid out by lessees shall be registered by the lessor taxpayer as incomes in the calculation of the taxable base for the tax pertaining to the application of the simplified system of taxation.

Direction of the Central Bank of Russia No. 1710-U of August 8, 2006 on the Amendments to the Regulation of the Bank of Russia No. 225-P of May 6, 2003 on the Guide of Bank Identification Codes of Participants of Payments Making Payments Through the Payment Network of the Central Bank of the Russian Federation (Bank of Russia)



Adjusts the procedure of inclusion of information on interregional storages of the Central Storage of the Bank of Russia in the Guide of Bank Identification Codes of participants of payments making payments through the payment network of the Central Bank of the Russian Federation (BIK).

Inclusion (exclusion) of information on interregional storages in the BIK Guide of Russia, as well as the changing of the details of the interregional storages, shall be arranged at the presentation Head Storage of the Central Storage of the Bank of Russia (rather than the Central Storage as before).

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 August 23, 2006. Reg. No. 8160.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/1/637 of August 18, 2006



Payments and rewards to employees are regarded as object of taxation for the uniform social tax if the taxpayer organisation does not include such payments in expenses reducing the taxable base for the profit tax from organisations.

Determination of the taxable base for the profit tax does not include expenses in the form of material aid paid out to employees, therefore, payments in the form of material aid made in the framework of the collective contract are not recognised as object of taxation for the uniform social tax.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-01-15/7-213 of August 15, 2006



Cash registers used by organisations (except for the credit organisations) and independent entrepreneurs must be registered in the tax bodies at the place of registration of the organisation or independent entrepreneur as a taxpayer. If the earlier used models of cash register are excluded from the State Register of Cash Registers, they may be operated further until expiry of the normative period of amortisation.

It is permitted to reregister in the tax bodies and operate further the earlier used (registered in the tax bodies) cash registers excluded from the State Register when the normative period of amortisation has not expired in the cases of registration as an independent entrepreneur of the natural person having founded the organisation where the cash registers were registered.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-01-15/6-182 of July 14, 2006



According to the Federal Law on the use of cash registers in cash payments and/or payments using pay cards, organisations and independent entrepreneurs may effect payments in cash without the use of cash registers when rendering services to the population on condition of issue of strict-accountability forms endorsed by the Ministry of Finance of Russia.

For organisations and independent entrepreneurs providing paid services of photocopying, printing documents on paper, loading files in cellular phones to the population, the Ministry of Finance of Russia did not endorse any forms of slips, therefore, the payments for these services must be made using cash registers or through credit institutions (cashless payments).

Decision of the Government of the Russian Federation No. 525 of August 28, 2006 on the Amendments to the Rules of Obligatory Insurance of Civil Liabilities of Owners of Transport Vehicles Endorsed by the Decision of the Government of the Russian Federation No. 263 of May 7, 2003

Refines some notions used while concluding the contract obligatory insurance of civil liabilities of owners of transport vehicles, in particular, the notions of the “insurant”, “insurance tariff rates”, “compensation payments”.

Extends the notion of the “insured case”: such case now implies occurrence of civil liabilities of the insurant, other persons whose liabilities are insured under the contract of obligatory insurance for the damage to the life and health or property of victims in the cases of use of the transport vehicle which entails the duty of the insurer to make the insurance payment.

The damage to the property possessed by the person responsible for the damage is not reimbursed.

The list of the documents necessary for the conclusion of the contract of obligatory insurance now does not include the proxy to drive the transport vehicle mentioned in the application. A clause is included pertaining to responsibility for presenting information known to be false and/or invalid documents.

The rules are extended to include new norms defining the cases of an early termination of the contract by both the insurant and the insurer, as well as determination of the moment of its early termination. The Decision refines the list of documents necessary for the insurer to take the Decision to make the insurance payment.

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

Decision of the Government of the Russian Federation No. 524 of August 26, 2006 on the Endorsement of the Regulation on the Licensing of Activities in Collection, Use, Decontamination, Transportation, Deployment of Hazardous Waste



Defines the procedure of licensing of activities in collection, use, decontamination, transportation, deployment of hazardous waste carried out by legal entities and/or independent entrepreneurs. The licensing of the mentioned activities is vested in the Federal Service of Ecological, Technological and Nuclear Enforcement. The Decision lists the major violations of the license requirements and terms that may entail license revocation. The license is granted for 5 years.

Information pertaining to activities of collection, use, decontamination, transportation, deployment of hazardous waste shall be placed by the licensing body in official electronic or printed media, as well as on information stands in the rooms of the licensing body. Access to this information is free.

Decision of the Government of the Russian Federation No. 522 of August 25, 2006 on the Functioning of the Joint State Automatic Information System of Registration of the Volume of Production and Circulation of Ethyl Alcohol, Alcoholic and Alcohol-Containing Products



Endorses the rules of functioning of the Joint State Automatic Information System of registration of the volume of production and circulation of ethyl alcohol, alcoholic and alcohol-containing products maintained by the Federal Tax Service. The software for the Joint State Automatic Information System shall be created by the organisation subordinate to the Federal Security Service of Russia in compliance with technical specifications endorsed by the Federal Tax Service in coordination with the Federal Customs Service and the Federal Security Service of Russia.

The Joint State Automatic Information System shall contain information submitted by organisations producing and/or disseminating, including the import of (except for the retail trade), ethyl alcohol, alcoholic and alcohol-containing products, organisation supervised by the Ministry of Finance and making federal special and excise-duty stamps, as well as information submitted by the federal bodies of executive power and the bodies of executive power of the subjects of the Russian Federation necessary for the state control of the volume of production and circulation of the products.

The Decision specifies the list of information forming the one submitted by organisations to the Joint State Automatic Information System. To register the information in the Joint State Automatic Information System, the organisation, using technical means, shall submit in the electronic form a request for registration. The federal bodies of executive power and the bodies of executive power of the subjects of the Russian Federation shall submit information necessary for the state control of the volume of production and circulation of the products for the entry into the Joint State Automatic Information System in compliance with the agreements on information exchange in the Joint State Automatic Information System concluded with the Federal Tax Service including the list and procedure of transfer of information.

Direction of the Central Bank of Russia No. 1716-U of August 23, 2006



From October 1, 2006, the normative of obligatory reserves for obligations to non-resident banks in the currency of the Russian Federation and foreign currencies is fixed in the amount of 3.5%.

In view of the revocation from July 1, 2006 of the reservation requirement for currency operations, increases the normative of obligatory reserves for obligations of credit organisations to non-resident banks in the currency of the Russian Federation and foreign currencies from 2% to 3.5%. The given measure together with other ones (increased rouble rate, growing interests rates in deposit operations) is intended to inspire restriction of the surplus of monetary supply and reduction of the rates of inflation.

Equalisation factor for credit organisations is increased from 0.2 to 0.3. This permits credit organisations to better adjust to new reserve requirements and provides for a better opportunity to manage own liquidity by maintaining obligatory reserves on the correspondent account opened in the Bank of Russia.

Letter of the Central Bank of Russia No. 112-T of August 23, 2006 on the Application of the Instruction of the Bank of Russia No. 113-I of April 28, 2004 and the Regulation of the Bank of Russia No. 262-P of August 19, 2004



The mentioned normative acts of the Bank of Russia, before introduction of appropriate amendments to them, shall apply where they do not contradict the Federal Law No. 147-FZ of July 27, 2006 on the amendments to Articles 5 and 7 of the Federal Law on the combating of legalisation (laundering) of incomes obtained in a criminal way and financing of terrorism. The mentioned Law specifies that identification of the payer (client) is not necessary in a number of operations of money transfers for the amount not greater than Rbl 30,000 and of purchase (sale) of foreign currencies in cash for the amount not greater than Rbl 15,000. Such operations include, in particular, payments to the budgets of all levels of the budget system of the Russian Federation, payment for the services of budget-supported institutions, payment of alimony, payment for the communal services, communication services etc.

Letter of the Central Bank of Russia No. 111-T of August 23, 2006 on the Memorandum of the Committee of the Association of Russian Banks on the Issues of Combating of Legalisation of Criminal Incomes and Financing of Terrorism

The adopted memorandum on the measures to combat the use of credit organisations for the purposes of withdrawal of large amounts of money from legal circulation into the “shadow economy” contains recommendations for credit organisations to apply in practical activities a set of measures aimed at minimisation of involvement of credit organisations in doubtful financial schemes of unfair clients.

Decision of the Government of the Russian Federation No. 526 of August 29, 2006 on the Prolongation of the Interim Rates of Import Customs Duties for Individual Commodities <br>

Prolongs until June 30, 2007 the rates of import customs duties for individual types of shoes (codes according to the Foreign Trade Commodity Nomenclature of Russia 6403 12 000 1- 6406 99 800 0), gas discharge lamps (except for the ultraviolet lamps) (codes according to the Foreign Trade Commodity Nomenclature of Russia 8539 32 500 0 and 8539 32 900 0), grain and silo harvesting combines, spare parts for washing machines, individual types of technological equipment (codes according to the Foreign Trade Commodity Nomenclature of Russia 8402 11 000 1- 9032 81 900 0), rolling stock of ferrous metals (codes according to the Foreign Trade Commodity Nomenclature of Russia 51 300 0; 7208 51 500 0; 7225 40 200 0), natural uranium and uranium depleted with uranium-235, individual metals, ores and concentrates (codes according to the Foreign Trade Commodity Nomenclature of Russia 2617 90 000 0, 2620 99 900 0, 2825 60 000 0, 8112 30 200 0, 8112 30 400 0, 8112 30 900 0), electrodes, technological equipment for the aircra ft industry, individual types of transport vehicles older than 5 years of age (codes according to the Foreign Trade Commodity Nomenclature of Russia 8701 20 901 3, 8701 20 901 7, 8704 22 990 3, 8704 22 990 7, 8704 23 990 3, 8704 23 990 7), individual types of cheese (code according to the Foreign Trade Commodity Nomenclature of Russia 0406 90).

The rates of the import customs duties for the mentioned commodities were fixed on the temporary basis (for 9 months) expiring in September 2006- June 2007 (depending on the commodity).

Prolongation of the rates is stipulated by the need to solve the tasks pertaining to the entry into force form January 1, 2007 of the new wording of the Foreign Trade Commodity Nomenclature of Russia envisaged in international obligations.

The Decision is entered into force one month after the day of its official publication.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-11-04/3/376 of August 15, 2006 <br>

Provides explanations on the procedure of application of the uniform imputed income tax.

Entrepreneurial activities of sale of own cooking items at the place of their production and consumption (restaurants, canteens, cafes, snack bars, bars, buffets, pavilions, automatic dispensers and other objects of public catering) carried out by the enterprises of consumer cooperatives are qualified as public catering services and are subject to the uniform imputed income tax. At the same time, activities of sale of own cookery through the network of shops and pavilions carried out by these enterprises may not be qualified as retail trade and are subject to taxation in the framework of the common taxation regime or according to the simplified system of taxation.

Entrepreneurial activities of sale of cooking items and confectionary of public catering enterprises in the buffets of educational and medical institutions, if these buffets are not being separate divisions of public catering organisations, are not subject to the uniform imputed income tax.

Telegram of the Federal Customs Service No. TF-1962 of August 25, 2006 <br>


According to the Federal Law No. 117-FZ of July 18, 2006 on the export of gas, supplies of natural gas abroad (except for the gas produced under production-sharing agreements) may be provided by organisations possessing the license for the exclusive right of export of gas.

In pursuance of the adoption of the mentioned Law, the Federal Customs Service in its Telegram No. TF-1821 of July 31, 2006 ordered the customs bodies to carry out from July 31, 2006 the customs registration of exported gas produced in all types of deposits of hydrocarbon raw materials and transported in gaseous or liquefied condition only in the presence of the license for the exclusive right of export of gas. However, since the mentioned Law covers only natural gas rather than the products of processing of gas, in particular, the stable gas condensate (code according to the Foreign Trade Commodity Nomenclature of Russia 2709 00 100 0), the presence of the mentioned license for the export of products of processing of gas is not necessary.

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