Windfall tax for major companies to be introduced in Russia

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Monitoring of the Federal Legislation dated 15.09.2006

Order of the Federal Tax Service No. SAE-3-09/596@ of September 11, 2006 on the Invalidation of the Order of the Federal Tax Service of Russia No. SAE-3-24/493@ of October 6, 2005 on the Endorsement of the Form of the Notification of the Tax Bodies by Residents of Opening (Closing) of Accounts (Deposits) in the Banks Outside the Russian Federation



Pursuant to the introduction of the new form of the notification of the opening (closing) of accounts (deposits) in the banks outside the Russian Federation (endorsed by the Order of the Federal Tax Service No. SAE-3-09/518@ of August 10, 2006) invalidates the Order of the Federal Tax Service of Russia No. SAE-3-24/493@ of October 6, 2005 having specified the previous form of the mentioned notification.

Letter of the Ministry of Finance of the Russian Federation No. 03-04-10/12 of August 29, 2006 on the Application of the Value Added Tax in Capital Construction Using Contract Method



If the organisation is an investor, client and a construction party in object construction implemented through contactors without using own force for construction and installation works, expenses of the organisation to maintain the division of this organisation in charge of control over construction and technical enforcement included in initial cost of the given object are not recognised as object of taxation for the value added tax. In this case, VAT amounts for commodities (works, services) purchased by the organisation for the maintenance of the mentioned division are not subject to exemptions.

Letter of the Federal Tax Service No. 03-4-03/1379@ of July 21, 2006 on the Procedure of Application of Subitem 4 of Item 1 of Article 148 of the Tax Code of the Russian Federation

According to the Ministry of Finance, when a Russian organisation renders marketing services (services of investigation of the market situation) to a foreign organisation not being a resident of the Russian Federation, the place of implementation of the given services is not recognised to be the territory of the Russian Federation, therefore, the value added tax does not apply to the mentioned services on the territory of the Russian Federation.
If the territory of the Russian Federation is not recognised as the place of implementation of the marketing services, the given services are registered in Section 8 “Operations Exempted from Taxation and Operations Not Recognised As Object of Taxation, As Well As Operations of Sale of Commodities (Works, Services) If the Place of Implementation Is Not the Territory of the Russian Federation” of the declaration for the value added tax.

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