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Home / Publications / E-Bulletin / 2003 |
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E-Bulletin, August 2003
1. Russian Microfinance Policy Environment Initiative
In August 2003, the Russian Microfinance Center published the report The Legal Environment for Microfinance Activity in Russia: Analysis and Recommendations for Reform. The research was undertaken to answer the following fundamental questions: what are the shortcomings of the Russian legal base and what should be changed? It also analyses current Russian laws regulating the provision of loans and credits to SMEs as well as their practical application. Recommended in the research program of short-term and long-term reforms will be implemented by the RMC in the coming years.
We hope that the conclusions and recommendations will be a subject for further discussion and that responses and commentary to the research will allow the RMC to determine concrete steps in improving the legal environment for the further development of the Russian microfinance sector. The research is available in English or Russian on the RMC web site (www.rmcenter.ru) or you may contact us to receive a copy by mail.
For more detailed information on program's activities please contact RMC Legal Issues Adviser Natalya Burtseva: nburtseva@rmcenter.ru.
2. Public Events on Microfinance
2.1. The conference Regional Policy on the Formation of Rural Credit Cooperation was held in Volgograd on August 13-15. The conference was sponsored by the Volgograd Oblast administration and was dedicated to the discussing the improvement of the legal and regulatory environment for rural credit cooperation, its perspectives, and the role of rural cooperatives in Russia's financial system. The Russian Microfinance Center's legal issues adviser Natalya Burtseva supported the discussions by conducting a presentation on regulation of credit cooperation.
The conference participants included ministries, administrative bodies, the Federation Council, and the State Duma. Regional administrations, foreign representatives, research institutes, and over 50 rural credit cooperatives from different regions participated in the conference as well.
2.2. The Russian Microfinance Center is currently preparing for its second annual conference, Microfinance in Russia: New frontiers in Development. The conference will be held in Saint Petersburg, Russia, December 3-5, 2003. The conference will touch on different aspects of microfinance and support of the sector, emerging new technologies in microfinance, as well as expansion and achievements.
For further information on the conference and participation, please contact RMC training coordinator Irina Serova, iserova@rmcenter.ru or Tatyana Zaikova, tzaikova@rmssp.ru.
3. News from Russia's Regions
The National Institute of Systematic Research on Entrepreneurship Issues announces that the Nizhny Novgorod Center for Business Development began operations on August 5th. The center will provide financial, information, and legal support for the SME sector and will be involved in designing training programs for start-up businesses and research on market needs in the SME sector.
The center's director Igor Zhitkov noted that there are over 100,000 SMEs operating in Nizhegorodskaya oblast (13% of the total number of SMEs in Privolzhskiy Federal District and 2% of all SMEs registered in Russia). SME tax revenues in the region are estimated at 16.2% of all tax revenues collected.
The center will also begin a leasing program, however, traditional microfinance activity will be a priority for the center. Loans amounts and terms during the center's start-up stage of development will be a maximum size of up to 150,000 RR for up ot 6 months.
If you find information in this section interesting and would like to contribute, please contact RMC Business Development Manager, Rigo Ovcihyan: rovchiyan@rmcenter.ru.
4. The RMC welcomes a new team member
Khalida Khusainova joined the RMC on August 18th as the Director for Training and Consulting. For the past 10 years Khalida has been involved in various projects related to the development of effective management in organizations and adult training. Under the Morozov Project, Khalida actively participated in creation of a network of business schools throughout Russia. She also took part in designing and conducting a number of training programs on financial management and management consulting as well as coordinating internships for representatives of regional government authorities, businessmen, trainers and consultants of business centers. At the RMC, Khalida will manage the training and consulting practice.
5. Upcoming events
RMC is planning the following open-enrollment courses for the fall: - Loan Officers' Training, 29 Sep - 2 Oct, 2003 (Khabarovsk)
- Financial Analysis for MFI (with MFC), 20-23 Oct 2003 (Moscow)
- Business Planning and Modeling with MICROFIN (with MFC), 10-14 Nov 2003 (Moscow)
If you have questions regarding training services please contact RMC training coordinator Irina Serova, iserova@rmcenter.ru.
6. Question and Answer
We continue to publish the most interesting answers to the questions received by RMC last month.
Question:
Is it necessary to pay the unified social tax (UST) on the disbursed salaries of credit cooperative personnel?
It seems to us that it is not required based on subparagraph 8 of paragraph 1 of article 238 of the Tax Code, which indicates that sums disbursed from funds received by the cooperative as membership fees for gardening, agricultural, housing cooperatives, to individuals implementing activities or rendering services to such organizations, are exempt from the UST.
Is it possible to operate within the Tax Code yet reduce UST payments in credit cooperatives?
Answer:
According to the RF Civil Code, the legal form of a consumer credit cooperative is considered a noncommercial organization. Article 116 of the RF Civil Code, however, indicates there may different types of consumer credit cooperatives.
The legal status of consumer credit cooperatives is regulated in accordance with the federal law On Consumer Credit Cooperatives of Citizens. The legal status of other types of consumer cooperatives is regulated by other normative acts. For example, the legal status of gardening cooperatives is regulated by the federal law On Gardening, Horticultural, and Dacha Noncommercial Associations of Citizens, and the legal base for housing cooperatives is covered by the federal law On Societies of Housing Owners, etc.
Therefore, consumer credit cooperatives of citizens are a distinct form of consumer cooperative.
The list of the types of consumer cooperatives found in subparagraph 8 of paragraph 1 of article 238 of the Tax Code is complete and may not be expanded more broadly. Other types of consumer cooperatives (including consumer credit cooperatives of citizens) who are not in this list and who disburse funds on account of membership fees, may not apply the principles indicated of subparagraph 8 of paragraph 1 of article 238 of the Tax Code.
Taking into consideration that the wording of subparagraph 8 of paragraph 1 of article 238 of the Tax Code is quite precise and clear, the use of privileges indicated in paragraph 7 of article 3 of RF Tax Code would be impossible (In accordance with point 7 of article 3 of the RF tax code, all unresolvable questions, contradictions, and ambiguities in laws or acts on taxes and levies will be resolved in favor of the taxpayer.).
RMC Legal Issues Adviser
Natalya Burtseva
If you have any questions, suggestions, your e-mail address changed or you would like to unsubscribe, please send us a message to info@rmcenter.ru, with "Bulletin" remark in a subject line.
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