October 2002

This material is provided for information purposes only under a grant from USAID through Development Alternatives Inc. Russian Microfinance Center, Development Alternatives Inc. and USAID shall not be liable for any damage to any organization's property due to any use of explanations, conclusions and interpretations of effective legislation contained herein.
Author: LEGEM PERFERRE
Short Version: Russian Microfinance Center

RF Tax System

No new legal acts on taxes and levies were adopted in October; all changes in taxation were introduced by the Ministry of Taxes and Levies (MTL RF). In particular, MTL RF established new forms of tax notifications (on transport tax and tax on property of natural persons) and clarified the procedure of filling and submitting certain tax declarations (tax on profit of organizations, unified social tax, and mandatory pension insurance payments), and others.

Adopted Normative Legal Acts

• Order of MTL RF of 30 August 2002 No BG-3-05/469 amending the order of the Russian MTL of 28 March 2002 No BG-3-05/153
  Registered with the Russian Ministry of Justice on 3 October 2002 Registration No 3829.
  The text of the order is published in Rossiiskaya Gazeta of 9 October 2002 No 191.
  • The Order clarifies the Procedure of filling the form of Mandatory Pension Insurance advance payment. In particular, it provides the following guidelines:
    - Title page 1 of advance payment form and pages No 05-06 must be filled by all insurers, while only those of pages No 02-04 must be returned which apply to respective taxpayers;
    - Organizations which entered into work contracts and civil code service contracts or copyright contracts with natural persons, but did not make any payments or other remunerations under these contracts over the reporting period, must submit advance payment forms for the reporting period.
• Order of MTL RF of 8 October 2002 No BG-3-05/547 amending the Order of the Russian MTL of 1 February 2002 No BG-3-05/49"
  Registered with the Russian Ministry of Justice on 18 October 2002, Registration No 3865.
  The text of the order is published in Rossiiskaya Gazeta of 23 October 2002 No 201.
  • Amendments of the Procedure of filling the Unified Social Tax advance payments form apply only to those taxpayers which, in addition to activities taxable under Imputed Tax, engage in other activities.
• Order of MTL RF of 14 October 2002 No BG-3-04/566 introducing the tax notification form for transport tax paid by natural persons and amending the Order of the Russian MTL of 14.10.1999 No ÀÏ-3-08/326
  • The Order establishes a new tax notification form for transport tax paid by natural persons. This notification stating the amount of tax must be sent to natural persons - taxpayers of transportation tax, no later than 1 June of the fiscal period.
  • It establishes a new version of notification forms for property tax of natural persons and for the tax on inherited property and gifts.
• Order of MTL RF of 9 September 2002 No ÂÃ-3-02/480 amending the Instruction of filling the declaration of profit tax of organizations established by the Order of the Russian MTL of 29.12.2001 No BG-3-02/585
  Registered with the Russian Ministry of Justice on 8 October 2002, Registration No 3843.
  The text of the order is published in Rossiiskaya Gazeta of 17 October 2002 No 197.
  • The Order harmonizes the Instruction of filling the declaration of profit tax of organizations with Chapter 25 of the Russian Tax Code and with the new form of the said declaration.
  • In particular, MTL RF explains how to fill the new appendices to the text declaration which were introduced in July 2002 (appendices Nos 6-7 to Page 02 of the tax declaration).
  • In filling Page 02 interest received under loan agreements must be stated in Line 030.
  • Microfinance institutions incorporated as non-profit organizations should pay particular attention to the new method of filling Page 14 of the declaration where they report on the use of targeted/purpose-oriented funding [including grants].
• Order of MTL RF of 2 September 2002 No BG-3-23/470 introducing the Instruction on filling the land tax declaration
  Registered with the Russian Ministry of Justice on 8 October 2002 Registration No 3842.
  The text of the order is published in Rossiiskaya Gazeta of 16 October 2002 No 196.
  • The Order introduces a new method of filling the land tax declaration. This declaration was introduced by the MTL RF Order of 12 April 2002 No BG-3-21/197 and applies to all organizations which must pay the land tax.
  • The land tax declaration must be submitted to tax authorities located in the same area as the land plots which are the object of the tax.

• Telegram of the Russian Central Bank of 2 October 2002 No 133-Ò
  The text of the Telegram is published in Vestnik Banka Rossii of 9 October 2002 No 53.
  In the 4th Quarter of 2002 authorized capital requirements for new credit institutions are .11 per cent less than in the 3d Quarter, namely:
  - For banks - no less than RUR 154,541,000;
  - For non-bank credit institutions - no less than RUR 15,454,100.
• Instruction of the Russian Central Bank of 22 July 2002 No 102-I on Issue and Registration of Securities by Credit Institutions in the Russian Federation
  Registered with the Russian Ministry of Justice on 9 October 2002 Registration No 3852.
  The text of the Instruction is published in Vestnik Banka Rossii of 17 October 2002 No 55, in Rossiyskaya Gazeta of 23 October 2002 No 201.
  • The Instruction establishes procedures for registration and issue of shares and bonds by credit institutions.
  • All issues of securities, regardless of the amount issued and the number of investors, are subject to registration with the Bank of Russia Department of Licensing and Financial Rehabilitation of Credit Institutions and the Bank of Russia local branches.
  • It establishes the procedure of quarterly reporting on securities in a specified format and the procedure of providing information on significant events and actions affecting the financial and economic situation of the issuing institution.
  • It also establishes the procedure of recording transactions associated with the formation of Credit Institutions' authorized capital.
  • Due to the adoption of the new Instruction, the Central Bank, by its Directive of 14 October 2002 No 1197-U, annulled its former Instruction of 17 September 1996 No 8.
• Regulation of the Russian Central Bank of 30 July 2002 No 191-R on Consolidated Reporting
  Registered with the Russian Ministry of Justice on 11 October 2002 Registration No 3857.
  The text of the Regulation is published in Vestnik Banka Rossii of 31 October 2002 No 58, in Rossiyskaya Gazeta of 30 October 2002 No 206.
  • The Regulation establishes a new procedure for compiling consolidated reports of Credit Institutions, their submission to the Bank of Russia, and the use of consolidated data in banking supervision.
• Directive of the Russian Central Bank of 14 August 2002 No 1186-U on contributions to Credit Institutions' authorized capital made [by government authorities] from government budget of all levels, state non-budgetary funds, available financial resources, or other assets managed by government and local self-administration
  Registered with the Russian Ministry of Justice on 7 October 2002 Registration No 3837.
  The text of the Directive is published in Vestnik Banka Rossii of 16 October 2002 No 54 and in Rossiyskaya Gazeta of 16 October 2002 No 196.
  • The Directive establishes the procedure for making contributions to Credit Institutions' authorized capital using the funds of government budget of all levels, state non-budgetary funds, available financial resources, or other assets managed by government and local self-administration.
  • It sets out a list of documents to be submitted to the Bank of Russia local branch as proof that a certain government authority or local self-administration body can legitimately participate in a Credit Institution's authorized capital.
  • The Bank of Russia must be notified if more than 5 per cent of Credit Institution's stock is purchased by said authorities, and prior authorization is required for purchasing more than 20 per cent of stock.

• The Federal Law of 30 October 2002 No 132-FZ amending the Federal Law on combating legalization of proceeds from crime ('money laundering')
  The text of the Law is published in Rossiiskaya Gazeta of 2 November 2002 No 209-210.
  • The law expands the list of transactions subject to mandatory supervision, and, correspondingly, the number of agencies authorized to exercise such supervision. In particular, the following transactions ( Only if the amount of transaction equals or exceeds RUR 600,000.) are now subject to supervision:
    - Postal money orders;
    - Sale and purchase of precious metals and stones, and of jewelry made thereof;
    - Payment of prize won in a lottery or gambling.
  • Credit Institutions are allowed to refuse to open accounts for (accept deposits from) legal entities or natural persons if they fail to provide documented information required by law.
  • Organizations authorized to exercise mandatory supervision are allowed to refuse to perform a transaction ordered by a client if the latter fails to submit documented information required by law.
• The Federal Law of 30 October 2002 No 130-FZ on Amending the Russian Code of Administrative Offenses
  The text of the Law is published in Rossiiskaya Gazeta of 2 November 2002 No 209-210.
  • Administrative liability is established for non-compliance with the Law on combating the legalization of proceeds from crime.
  • A fine is imposed on organizations (between 500 and 5,000 minimum wages) and their officials (between 100 and 200 minimum wages), for non-compliance with the obligation to document, store, and deliver information on supervised transactions.
• Order of the Russian Federal Committee on Financial Monitoring (CFM) of 3 September 2002 No 62 endorsing the Instruction on submitting to the RF Committee on Financial Monitoring all data required by the Federal Law of 7 August 2001 No 115-FZ on combating legalization of proceeds from crime ('money laundering')
  Registered with the Russian Ministry of Justice on 11 October 2002 Registration No 3860.
  The text of the order is published in Rossiiskaya Gazeta of 22 October 2002 No 200.
  • CFM establishes a unified format for providing data on supervised transactions involving money or other assets.
  • The Order applies to organizations which perform transactions subject to mandatory supervision.
• Order of MTL RF of 9 August 2002 No BG-3-09/426 on registration with the local tax authorities of legal entities incorporated after 1 July 2002
  Registered with the Russian Ministry of Justice on 3 October 2002 Registration No 3830.
  The text of the order is published in Rossiiskaya Gazeta of 9 October 2002 No 191.
  • It establishes a procedure for incorporation of entities, newly formed or reorganized, after 1 July 2002 ã.
  • Such legal entities register as taxpayers with a local tax authority by submitting an application and a required set of papers.
  • Within five days after the date of registration, a certificate is issued (mailed to) the organization.

• The Federal Law of 9 October 2002 No 122-FZ amending the RSFSR Law on competition and restricting monopoly in product markets
  The text of the Law is published in Rossiiskaya Gazeta of 12 October 2002 No 194.
  • The new law increases state anti-monopoly control and extends the powers of the Ministry of Anti-Monopoly Policies and Support of Enterprise (MAP).
  • Microfinance institutions incorporated as non-profit organizations should remember that under the new version of the law they must notify anti-monopoly authorities of the following:
    - Establishment or merger of membership-based non-profit organizations (associations, unions, non-profit partnerships), if their corporate membership includes two or more commercial companies;- Any changes in the membership of said non-profit organizations.
    Founders (members) of such organization must notify anti-monopoly authorities within 45 days after incorporation or after official registration of amendments to their statute in the Unified Register of Legal Entities.
  • The following new provisions are especially important in the amended law:
    - Organizations with total assets exceeding 100,000 minimum wages must inform anti-monopoly authorities of individuals elected to their executive bodies, boards of directors (steering committees), etc. within 45 days after the election;
    - Commercial organizations whose mergers are subject to supervision by anti-monopoly authorities are those with assets equal or exceeding 200,000 minimum wages, as opposed to 100,000 under the old law.
• Decree of the Russian Government of 3 October 2002 No 731 amending and annulling certain decrees of the RSFSR Council of Ministers, the RSFSR Government, and the Government of the Russian Federation on the incorporation of legal entities
  The text of the Decree is published in Rossiiskaya Gazeta of 16 October 2002 No 196.
  • Due to the enactment of the Federal Law on Incorporation [state registration] of Legal Entities, the RF Government has adjusted its normative legal acts accordingly. In particular, it annuls the Decree of the RSFSR Government of 28 November 1991 No 26 on the incorporation of enterprises with foreign investments.
• Decree of the Russian Government 30 October 2002 No 784 on shifting holidays and weekends in 2003
  • In 2003, the following holidays and weekends are shifted:
    - Saturday 4 January to Friday 3 January;
    - Sunday 5 January to Monday 6 January;
    - Saturday 21 June to Friday 13 June.

• The Federal Law of 26 October 2002 No 127-FZ on Insolvency (Bankruptcy)
  The text of the Law is published in Rossiiskaya Gazeta of 2 November 2002 No 209-210.
  The Law enters info force on 3 December 2002, except some of its provisions.
  • The new Federal Law on Insolvency (Bankruptcy) has introduced a number of important changes:
    - The amount of outstanding debt which may trigger bankruptcy procedures against a debtor organization is increased from RUR 50,000 to RUR 100,000;
    - Creditors may file a bankruptcy suit if they have claims supported by an effective judicial decision, and collection procedures have been enforced;
    - An owner (founder, participant) of a debtor organization may satisfy all claims and terminate bankruptcy procedures even at the stage of external management or liquidation;
    - New rules for appointing arbitration managers;
    - Creditors whose claims are secured by collateral have priority rights to any proceeds from the sale of collateral, etc.

Appendix 1