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 11.12.2006

Decision of the Government of the Russian Federation No. 752 of December 7, 2006 on the Amendments to the Typical Regulation on the Institution of Additional Education for Children

According to the amendments introduced in the procedure of activities of state (municipal) institutions of additional education for children, the given institutions may have only one founder represented by the body of state power or the body of local government. Combined founding is not permitted.

The Decision provides an exhaustive list of the types of state (municipal) institutions of additional education for children.

The mentioned institutions may not have accounts in banks. Instead, accounts are opened for them in the bodies of the Federal Treasury.

The state (municipal) institutions of additional education for children are empowered with authority to define independently the structure of management of the institution, endorse the manning table, distribute official duties.

Extra-budgetary sources, as well as the credits of banks and other creditors, are excluded from sources of forming of the property and financial resources of the institution, since obtaining credits by a budget-supported institution from credit organisations, other legal entities and natural persons, from the budgets of the budget system of the Russian Federation is in contradiction of the Budget Code of the Russian Federation.

Decision of the Government of the Russian Federation No. 751 of December 7, 2006 on the Endorsement of the Rules of Processing and Coordination of the Draft Program of the Subject of the Russian Federation to Render Assistance in Voluntary Resettlement to the Russian Federation of Compatriots Living Abroad

The state program of assistance of voluntary resettlement to the Russian Federation of compatriots living abroad envisaged subsidies to the subjects of the Russian Federation from the federal budget for partial reimbursement of expenses pertaining to implementation of the regional programs of resettlement coordinated and endorsed in 2006.

The rules define that the draft regional program is presented to the Government of the Russian Federation by the higher official of the subject of the Russian Federation to be later sent to the Ministry of Regional Development of Russia, interested federal bodies of executive power and to the Interagency Commission for the Implementation of the State Program to prepare remarks and suggestions.

Taking into account the received suggestions, and if there are remarks, as a result of processing of the draft program, the Ministry of Regional Development of Russia prepares a draft order of the Government of the Russian Federation on the coordination of the draft program and on distribution of the resettlement projects included in it by the categories of territories. The draft order is introduced for coordination to the higher official of the subject of the Russian Federation and to the interested federal bodies of executive power.

If there are disputes over the draft order, it may be introduced in the Government of the Russian Federation only with a protocol of the conciliation meeting and remarks of the heads of the appropriate bodies.

Decision of the Government of the Russian Federation No. 750 of December 7, 2006 on the Amendments to Some of the Acts of the Government of the Russian Federation

The state policy implemented in the sphere of gas supplies in the Russian Federation envisages regulation of the wholesale prices for gas and the payment for the supply-and-sale services rendered to end consumers by gas suppliers.

To liberalise the gas market in Russia, the Decision extends the list of gas-producing organisations where the regulated wholesale prices for gas and the payment for the supply-and-sale services do not apply. Besides organisations that are not affiliated to the OAO Gazprom, the list includes organisations that are not affiliated to the owners of the regional gas-supply organisations and the state enterprises, production and research-and-production associations of oil, oil-processing industry and oil product supplies converted into joint-stock companies. The price for the gas produced by these organisations is determined on the basis of market mechanisms.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-11-04/3/506 of November 27, 2006

Non-sales incomes in the form of bank interest obtained by the organisation engaged exclusively in activities subject to the uniform imputed income tax are exempted from the profit tax and must be registered as incomes from entrepreneurial activities subject to the uniform imputed income tax.

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