Presidential Decree No. 685 of 8 May 1996 (see our Tax Alert 4/96 of 27 May 1996) purported to establish as from 1 October 1996 a mixed cash/accrual system for profits tax purposes: income would be considered as received if advance payment had been received or if the goods had been shipped, whichever is earlier. In the absence of amendments to existing profits tax legislation, it has now been confirmed that the principle should not be applied until "specific instructions" are given.
Telegram of the State Tax Service and the Ministry of Finance No. PV-6-02/676 and No. 04-02-04 of 27 September 1996
IN-KIND CHARTER CAPITAL CONTRIBUTIONS / IMPORT DUTIES EXEMPTION
Following Government Regulation of 23 July 1996 No. 883, which established restrictions on the import privileges granted to in-kind contributions to the charter capital of joint-stock companies or the capital of partnerships, it is confirmed that only items listed in the All-Russian Classificator of Main Funds (No. OK 013-94, confirmed by Regulation of Gosstandard of 26 December 1994 No. 359) will qualify, provided they are directly used for production purposes as described in the charter documents. The State Customs Committee can carry out audits to control compliance with these requirements.
Order of the State Customs Committee No. 01-14/892 of 13 August 1996
TAX ARREARS / REGISTRATION OF PAYMENT DEFAULTER BANK ACCOUNTS
Presidential Decree No. 1212 of 18 August 1996 imposed an obligation, on taxpayers in arrears, to assign one bank account to be the "payment-defaulter bank account" (see our Tax Alert 10/96 of 27 August 1996) and to register this bank account with its local tax inspectorate within a week after publication of the Decree (22 August 1996). This deadline expired on 29 August, but the State Tax Service has only now published the instruction and the forms relating to the registration of the account.
It seems that the obligation to assign and register a payment defaulter bank account only applies if taxpayers were in arrears at the moment the Decree was published (22 August), and not if such arrears have accumulated after that date. No sanctions or penalties are provided for if the taxpayer fails to comply with the Decree.
Order confirmed by the State Tax Service, No. VG-4-12/56n of 30 August 1996
REPRESENTATIVE OFFICES / SOCIAL FUNDS / NEW BANK ACCOUNTS
With effect from 10 October 1996 the new bank details for the contributions payable by representative offices to the Pension Fund, the Employment Fund and the Medical Insurance Fund are as follows:
1. Pension Fund
KB "Avtobank" account 807140 MFO 044541774 kod uch. M7 correspondent account 774161100 Pension Fund of the Russian Federation TIN 7701095860
2a. Federal Medical Insurance Fund
KB "Mostbank" account 37692801 MFO 044583705 correspondent account 705161700 Federal Medical Insurance Fund TIN 7727032382
2b. Moscow Medical Insurance Fund
KB "Mostbank" account 37692102 MFO 044583705 correspondent account 705161700 Moscow Medical Insurance Fund TIN 7704043123T
3. Employment Fund
Moscow bank (Moskovskiy bank) AK SB RF account 699601 MFO 044583342 kod uch. VA correspondent account 342164500 Employment Fund TIN 7702078032
For further information contact Bauke van der Meer on tel: +7 503 232 5511 fax: +7 503 232 5522 or e-mail directly: Click Contact Link or enter a text search 'Coopers & Lybrand' and 'Business Monitor'
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.