Windfall tax for major companies to be introduced in Russia

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Daily Monitoring of the Legislation

Monitoring of the Federal Legislation dated 16.11.2006

Order of the Ministry of the Industry and Power Supplies, Federal Agency for Nuclear Power and the Federal Outer Space Agency No. 265/508/124 of October 26, 2006 on the Endorsement of the Procedure of Issue of the Document Confirming the Length of Production Cycle for Commodities (Works, Services)

To confirm the moment of determination of the taxable base for the value added tax in compliance with Item 13 of Article 167 of the Tax Code of the Russian Federation by taxpayers producing commodities (works, services) where the length of production cycle is greater than 6 months, endorses the procedure of issue of the document confirming the length of production cycle for the commodities (works, services).

The given document is issued by the Ministry of the Industry and Power Supplies of Russia within two weeks from the day of the appeal.

The Order specifies the list of documents submitted to the Ministry to get the document of confirmation, among which is the statement of the federal body of executive power (including the Federal Agency for Nuclear Power, Federal Outer Space Agency, Federal Agency of the Industry and other) on the length of the production cycle for the appropriate types of commodities (works, services) indicating their name, OKP (OKVED) code, time of production, name of producer organisation.

The checking of completeness and compliance of the documents with the requirements of the above provision of the Tax Code of the Russian Federation and the preparation of draft statements on the length of production cycle is vested in the Department of the Defence and Industrial Complex of the Ministry of the Industry and Power Supplies of Russia.

The document of confirmation is issued according to the lists of commodities (works, services) endorsed by the Decision of the Government of the Russian Federation No. 468 of July 28, 2006.

Registered in the Ministry of Justice of the Russian Federation on November 14, 2006. Reg. No. 8470.

Decision of the Government of the Russian Federation No. 682 of November 15, 2006 on the Endorsement of the Quota for the Issue of Permissions in 2007 for Employment to Foreign Citizens Arriving to the Russian Federation According to the Procedure That Does Not Require Obtaining the Visa

To provide for the optimum balance of labour resources, assist priority employment of citizens of the Russian Federation, the Government of the Russian Federation may introduce quotas for the issue of permissions for employment to foreign citizens arriving to the Russian Federation according to the procedure that does not require obtaining the visa. The visa-free procedure of entry in the Russian Federation is available for the citizens of the CIS member-states (except for Georgia and Turkmenistan). The amount of the quota is determined depending on the demand for the foreign workforce taking into account the political, economic, social and demographic situation.

For the year 2007, the Government of the Russian Federation specified the quota in the amount of 6 million permissions for employment to foreign citizens arriving to the Russian Federation according to the visa-free procedure. The given quota does not apply to the foreign citizens out of skilled specialists employed in their occupations according to the list of the most required professions in the Russian Federation (occupations, positions).

The Decision is entered into force from January 15, 2007.

Decision of the Government of the Russian Federation No. 683 of November 15, 2006 on the Fixing of the Permissible Share of Foreign Workers in 2007 Used by Economic Subjects Engaged in the Sphere of Retail Trade on the Territory of the Russian Federation

Introduces a permissible share of foreign workers for the year 2007 used by economic subjects engaged in the types of activities in the sphere of retail trade on the territory of the Russian Federation envisaged in the All-Russia Classifier of the Types of Economic Activities.

The mentioned shares will make in sphere of retail trade: alcoholic drinks including beer (code 52.25.1) - 0% of the total number of employees; pharmacy - (code 52.31) - 0% of the total number; in pavilions and marketplaces (code 52.62), as well as other retail trade outside the rooms of the shops (code 52.63) - in the amount of 40% of the total number for the period from January 15 to April 1, 2007 and 0% for the period from April 1 to December 31, 2007.

Economic subjects engaged in retail trade are ordered to bring the number of used foreign workers in compliance with the permissible shares.

Suggestions on the determination of the permissible share of foreign workers in various sectors of the economy for the next year shall be submitted to the Government of the Russian Federation on the annual basis until November 15 by the Ministry of Public Health and Social Development of Russia.

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

Decision of the Government of the Russian Federation No. 681 of November 15, 2006 on the Procedure to Issue Permissions for Temporary Employment to Foreign Citizens in the Russian Federation

To provide for implementation of provisions of the Federal Law No. 110-FZ of July 18, 2006 simplifying the mechanism of employment for foreign citizens, as well as the stateless persons, on the territory of the Russian Federation and create conditions to bring illegal migrants out of the shadow sector, endorses the rules of issue of permissions for temporary employment to foreign citizens in the Russian Federation.

The rules regulate the procedure of issue, suspension and revocation of the following documents: permission to attract and use foreign workers confirming the appropriate right of the employer; employment permissions for foreign citizens and stateless persons arriving to the Russian Federation according to the procedure that requires obtaining a visa; employment permissions for foreign citizens and stateless persons arriving to the Russian Federation according to the visa-free procedure.

The permission to attract and use foreign workers is issued by the Federal Migration Service of Russia or its territorial bodies in the presence of the statement of the body of executive power of the subject of the Russian Federation in charge of the issues of employment of population in the appropriate region.

Employment permissions are issued by the body of the migration service.

The Decision also specifies the time limits for the authorised body to take the decision and the grounds to refuse the issue of documents.

Permissions issued before the adoption of the rules shall preserve their force until expiry.

The Decision is entered not force from January 15, 2007.

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