Monitoring of the Federal Legislation dated 28.08.2006

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.