On Introducing Changes And Additions Into The Law Of The Russian Federation "about Tax On Profit Of Enterprises And Organizations"

Original Language Title: О внесении изменений и дополнений в Закон Российской Федерации "О налоге на прибыль предприятий и организаций"

Read the untranslated law here: http://pravo.gov.ru/proxy/ips/?doc_itself=&infostr=x&backlink=1&fulltext=1&nd=102038970

Expired-the Federal law dated 06.08.2001 g. N 110-FZ (January 1, 2002 year), the Russian Federation, the FEDERAL LAW on amendments and additions to the law of the Russian Federation "about tax on profit of enterprises and organizations" adopted by the State Duma December 5, 1995 year approved by the Federation Council December 19, 1995 year Article 1. To the law of the Russian Federation "about tax on profit of enterprises and organizations" (records of the Congress of people's deputies of the Russian Federation and the Supreme Soviet of the Russian Federation, 1992, no. 11, p. 525; N 34, art. 1976; 1993, N 4, art. 118; Rossiyskaya Gazeta, 1993, November 3, N 205; Collection of laws of the Russian Federation, 1994, no. 27, art. 2823; N 29, art. 3010; N 32, St. 3304; 1995, N 18, art. 1592; N 26, art. 2402, 2403) the following amendments and supplements: 1. In article 1:1) in paragraph 1: sub-paragraph b shall be amended as follows: "b) branches and other separated departments of enterprises and organizations, including branches of credit and insurance organizations, except for branches (branches) of the savings bank of the Russian Federation, have separate balance and settlement (current, correspondent);";
supplement paragraph subparagraph "b" as follows: ") branches (territorial banks) of the savings bank of the Russian Federation created in republics, krais, oblasts, cities of Moscow and Saint Petersburg.";
the last paragraph should be deleted;
paragraph amend paragraph to read as follows: "criteria for enterprises to small businesses (including the average number of employees) are set by the Federal law" on State support of small entrepreneurship in the Russian Federation ";
2) supplement article 1, new paragraph after paragraph 2 as follows: "2. Contributors listed in paragraph 1 of this article, further referred to as enterprises. In determining taxation credit, insurance organizations and their affiliates, these taxpayers further referred to as banks and insurers respectively. ";
3) paragraphs 2-4 take 3-5 points, respectively;
4) second paragraph of paragraph 4 after the words "refers to the word" Supplement "branch," and after the words "related to" add the words "or intelligence";
5) paragraph 5: the first paragraph, after the words "payers" add the words "for profit";
paragraph amend paragraph to read as follows: "specified in this paragraph of the Enterprise shall pay tax on profits earned from other activities."
2. In article 2:1) paragraph 2 shall be amended as follows: "2. The gross profit is the amount of profit (loss) from sales of products (works, services) fixed assets (including land plots), other property companies and income from the sale of operations, reduced by the sum of the costs of the operations.";
2) item 3 to supplement paragraph read as follows: "the enterprises engaged in foreign trade activity, in determining profit exclude proceeds from realization of goods (works, services) export duties paid.";
3) paragraph 4 shall be amended as follows: "4. in determining the profits from the sale of fixed assets and other property businesses for tax purposes taken into account the difference between the sale price and initial or residual value of these funds and property increased by an inflation index, calculated in the manner prescribed by the Russian Government.
On fixed assets, intangible assets, small components and objects whose value is repaid through depreciation, accepted the residual value of those funds and assets.
When implementing or gratuitous transfer of fixed assets and objects that are not completed construction within two years from the date of their acquisition or construction, which were granted for income tax, the taxable profit shall be increased (within the amounts previously granted concessions) for the residual value of those capital assets and incurred costs for objects that are not completed construction. ";
4) in paragraph 6: the second paragraph text in brackets shall be supplemented with the words: "; funds received under the grant aid provided by foreign States in compliance with intergovernmental agreements; funds received from foreign organizations in order of grant aid to Russian education, science and culture; funds received by privatized enterprise as an investment as a result of investment competitions (tenders); funds transferred between the master and its subsidiaries, provided that the proportion of core enterprise is more than 50 percent in the share capital of the subsidiaries; funds for the development of industrial and non-industrial base within the same legal entity ";
supplement paragraph after paragraph of the second paragraph to read: "the enterprises who have received donated from other businesses fixed assets, goods and other property, taxable income is increased by the value of these funds and assets referred to in the Act of transmission, but not below their carrying amount (residual) value, as reflected in the accounting documents transferring enterprises.";
supplement paragraph paragraphs read as follows:

"the cost of fixed assets and other assets transferred from the balance on the balance sheet of enterprises of consumer cooperation to address owners or their authorized bodies;
banks-tangible, intangible and money transferred within the same legal entity;
the cost of machinery and equipment, prototypes, mockups, and other products for testing and experimentation or donated by the employer of scientific organization in the process of executing the contract (order) on the establishment of scientific and technical products in accordance with the terms of the contract (order). ";
5) in paragraph 7, the words "on the date of receipt of the funds on the account or at the cashier of the company" were replaced by the words "on the day the definition of enterprise revenue from sales of products (works, services);
6) in paragraph 8: the third paragraph should read: "income as dividends received on shares belonging to the company-shareholder and certifying the right of the owner of these securities to participate in the distribution of company profits-issuer income from other securities as well as interest income (discount) received by the owners of State securities of the Russian Federation, state securities of the Russian Federation and bodies of local self-government securities";
paragraphs sixth, seventh and eighth shall be supplemented with the words "If the rate of profits tax, the balance in the budget of the Russian Federation, is different from the installed by main type of activity tax rates on earnings, the balance in the budget of the Russian Federation";
the ninth paragraph should read: "profit from realization of produced agricultural and hunting products, as well as from the sale of manufactured and processed in the enterprise of agricultural products of own production, except for the profit of the agricultural enterprises of industrial type identified by the list approved legislative (representative) body of a constituent entity of the Russian Federation.";
7) paragraph 9 shall be amended as follows: "9. In the calculation of taxable profit gross profit is reduced by the amount of deductions to the reserve and other similar funds established for the intended purpose in accordance with the legislation of the Russian Federation of enterprises for which provides for the establishment of such funds, but not exceeding the established by the legislation of the Russian Federation of the minimum sizes of these funds. In the case of these funds are not for the intended purpose, set by the legislation of the Russian Federation, additional contributions to these funds at the expense of the taxable profit. The sum of the contributions to these funds shall not exceed 50 per cent of the taxable profit of the enterprises.
When calculating the taxable base of banks gross profit is reduced by the amount of deductions for formation of reserves for possible devaluation of securities and losses on loans in the order established by the Central Bank of the Russian Federation on agreement with the Ministry of Finance of the Russian Federation. ";
8) in paragraph 11: the first paragraph shall be reworded as follows: "merged enterprises in order to undertake joint activities funds remaining at their disposal after tax, other property, as well as funds from voluntary donations and contributions from citizens not subject to income tax.";
supplement paragraph after paragraph of the second paragraph to read as follows: "enterprise which take into account the results of the joint activities, quarterly reports for every participant of this activity and the tax authority at the location of the company amounts due to each party to the joint activities of the profit share to account for her in the taxation irrespective of the actual distribution of the profits.
3. Article 4 shall be amended as follows: "article 4. Costs included in the cost of production (works, services) list of costs to be included in the cost of production (works, services), and the formation of the financial results included in the calculation of taxable profit shall be determined by federal law. "
4. Article 5 after the first part of the complement of the new part as follows: "the income tax Rate, balance the federal budget is established at a rate of 8 per cent for: banks contributing 50 per cent of the total at least the amount of loans the peasant (farmers ') holdings, collective farms, State farms and other agricultural enterprises producing or processing agricultural products, as well as small enterprises (with the exception of small businesses engaged in procurement and marketing, trade, procurement and brokering activities);

insurers, which at least 50 percent of the premiums paid during the reporting period, received from the insurance of property interests of peasant (individual) farms, collective farms, State farms and other agricultural enterprises producing or processing agricultural products, as well as small enterprises (with the exception of small businesses engaged in procurement and marketing, trade, procurement and brokering). ".
5. In article 6:1) in paragraph 1: sub-paragraph "and", insert the following text: ") to finance capital investments of industrial purpose (including capital investments for the creation and upgrading of sewage treatment plants), housing, as well as to repay bank credits obtained and used for these purposes, including interest on loans.
This benefit is granted to enterprises engaged in the development of its own production base, as well as financing capital investments of industrial purpose and housing in order to offer an equity interest, including repayment of bank credits obtained and used for these purposes, subject to the full use of the amounts accrued wear and tear (depreciation) on the last reporting date; ";
subparagraphs "b", "d", "f", delete and sub-items "c", "d", "e", "w", "and" read paragraphs respectively "b", "c", "d", "d", "e";
in the first subparagraph of subparagraph "b", delete the words "as well as" and the words "culture and cinema, archival service and sports associations, creative unions, guilds and associations of artists, but not more than 3 per cent of taxable profit, and" were replaced by the words "and sports, nature reserves, national nature and dendrological parks, botanical gardens, but not more than 3 per cent of taxable profit, and public institutions and organizations of culture and art , film, archival service, creative unions and other associations of creators ";
Subparagraph d shall be amended as follows: "d) costs of the enterprises on the development of social and residential areas for special content, food and clothing allowance of convicts, development of social sphere of the personnel of the penitentiary system, the provision stipulated by the current legislation guarantees and compensation staff of criminally-Executive system, the development of the productive capacity of enterprises of criminally-Executive system, strengthening of agricultural production base for prisoners and staff";
supplement paragraph subparagraphs "w" and "z" as follows: "w) to enterprises in conducting research and development work, as well as in the Russian Foundation for basic research and Russian Foundation of technological development, but not more than 10 per cent in total from the taxable profit;
w) to replenish insurance reserves life insurance within per cent envisaged in the structure of the tariff rates agreed with the Federal service for supervision of insurance activities. ";
2) paragraph 2 shall be amended as follows: "2. The tax rate on profits of companies fall by 50 percent if the total number of their employees with disabilities constitute not less than 50 per cent.
When determining entitlement to benefits specified in the Bill by the number of employees does not include disabled persons working part-time, contractors and other agreements civil legislation. ";
3) paragraph 3 shall be amended as follows: "3. For enterprises owned by creative unions, registered in the established order, taxable income is reduced by the amount of profit aimed at the implementation of the statutory activities of these unions.";
4) paragraph 4 shall be amended as follows: "4. In the first two years do not have to pay income tax on small enterprises engaged in production and processing of agricultural products; manufacture of food products, consumer goods, construction materials, medical equipment, medicines and medical products; construction of residential, industrial, social and environmental purposes (including construction work)-if the proceeds from these activities exceeds 70 per cent of the total proceeds from the realization of goods (works, services). When the day of the beginning of work of the Enterprise shall be the date of its State registration.
In the third and fourth year of work specified in the first subparagraph of this paragraph small businesses pay a tax in the amount of 50 per cent and 25 respectively of the profit tax rate, if revenue from these activities represented over 90 per cent of the total proceeds from the realization of goods (works, services).
These benefits are not available to small enterprises, formed on the basis of the liquidated (restructured) companies, their branches and divisions.

Upon termination of the small enterprise activities in connection with which the user has been granted tax breaks before the expiry of the five-year period (starting from the date of its State registration) the amount of tax on the profit, calculated in full amount for the whole period of its activity and increased by the amount of the additional payments that are defined on the basis of the refinancing rate of the Central Bank of the Russian Federation for the use of bank credit, which operated in the respective reporting periods shall be made in the federal budget. ";
5) paragraph 5 paragraph be supplemented as follows: "in determining the amount of the specified tax benefits calculation does not take into account losses incurred as a result of concealing or understating profits, losses, received before January 1, 1996 onwards as a result of the excess of actual labour costs compared with their critical value, as well as damages received from exceeding the limits, rules and standards, established by the legislation of the Russian Federation on cost accounting included in the cost of production (works, services), included in the computation of taxable profit. ";
6) in paragraph 6, the third paragraph shall read as follows: "public organizations of disabled persons, enterprises, institutions and organizations under their property, as well as commercial companies, authorized capital of which consists entirely of the contribution of public organizations of invalids";
in the ninth paragraph the word "and" was replaced by "psycho, psycho and anti-tuberculosis";
the tenth paragraph worded as follows: "enterprises (redeployed) in regions affected by radioactive contamination as a result of the Chernobyl and other radiological disasters, resulting from the execution of the design, construction, road repairs and manufacturing of building structures and components with the volumes of works on liquidation of consequences of radiation accidents not less than 50 per cent of the total, and for enterprises and organizations carrying out specified work in less than 50 per cent of the total -a portion of the profits earned as a result of the execution of these works. List of regions defined by the Government of the Russian Federation ";
the thirteenth paragraph should read as follows: "State and municipal museums, libraries, theatres, Philharmonic collectives, archival institutions, circuses, zoos, botanical gardens, dendrological parks and national reserves, received from their main activity";
supplement paragraph paragraphs read as follows: "the Federal Forestry service enterprises of Russia received from the processing and utilization of low-grade and small dimension wood from forest thinning and sales side use the forest, provided use this profit to forest management;
public associations of hunters and fishermen, as well as their ownership of enterprises, received from the realization of goods (works, services) of hunting and fishing, recreational and conservation areas;
enterprises of all organizational and legal forms, received from the realization of their medical products included in the list of essential medicines, medical products according to the list approved by the Government of the Russian Federation;
companies consumer cooperatives located in the far North. ";
7) paragraph 7 shall be amended as follows: "7. Tax incentives established by paragraphs 1 (with the exception of sub-item" d ") and 5 of this article, shall not reduce the actual tax amount, calculated without taking into account the benefits by more than 50 percent."
6. In article 8:1) paragraph 2 shall be amended as follows: "2. During the quarter, payers except as provided in paragraph 5 of this article produce upfront fees, tax on the basis of the estimated amount of profit for the taxable period and tax rates.
Enterprises extracting precious metals, precious stones, small enterprises and budget of the Organization shall be exempt from paying income tax advance contributions.
Representative bodies (legislative) power of subjects of the Russian Federation may waive the payment of advance payments of corporate income tax social organizations, religious associations, housing and construction, country-building and garage cooperatives, gardening company.
Advance tax contributions are made no later than 15th day of each month in equal instalments in the amount of one third of quarterly tax amounts.
At the end of the first quarter, six months, nine months and a year, taxpayers calculate the amount of tax on an accrual basis since the beginning of the year, on the basis of the actual profits they received shall be given incentives and tax rates on profits. The amount of tax payable to the budget shall be determined in the light of previously accrued payments.

The difference between the amount to be entered in the budget to actual profits and advance tax contributions over the past quarter, is subject to change by an amount calculated on the basis of per cent for the use of bank credit, established in the last quarter of the Central Bank of the Russian Federation. ";
2) in paragraph 8, the words "income tax" should be replaced by the words "tax on actual profit and on other taxes established by this law".
7. In article 9:1) in the title, delete "()";
2) in paragraph 1: in the first paragraph, delete the words "and return";
subparagraph "a" shall be amended as follows: "(a)) revenue in the form of dividends received on shares belonging to the company-shareholder and certifying the right of the owner of these securities to participate in the distribution of company profits-issuer income from other securities, with the exception of interest income (discount) received by the owners of State securities of the Russian Federation, state securities of the Russian Federation and bodies of local self-government securities";
subparagraph "b" shall be amended as follows: ") income (including income from rent and other uses) casinos and other gambling houses (places) and other gambling, video-salons (from the show), rental of video and audio cassettes and records on them, defined as the difference between revenues and expenses are included in cost of products (works, services) to account for taxation, with the exception of the costs of labour. The other gaming refers to the kind of entrepreneurial activity using slot machines (other equipment) with clothing or money winnings. ";
3) first paragraph of paragraph 2 shall be amended as follows: "taxes on income referred to in sub-paragraph (a) of paragraph 1 of this article, except for income from state securities of the Russian Federation, state securities of the Russian Federation subjects and securities in local self-government bodies, and with the proceeds referred to in subparagraph b of paragraph 1 of this article shall be collected at the rate of 15 per cent.";
4) paragraph 3 shall be amended as follows: "3. income tax on dividends received on shares belonging to the company-shareholder and certifying the right of the owner of these securities to participate in the distribution of company profits-issuer, with income from other securities, as well as participation in other enterprises are levied at the source of these revenues. Responsible for withholding and taxes is vested in the company, paying income.
Calculations for taxes on income referred to in subparagraphs a and b of paragraph 1 of this article shall submit to the tax authorities at the place of the finding of the enterprise paying income within five days from the date of the accrual of proceeds to shareholders, founders, but not later than 10 days after the distribution of the proceeds. Payment of tax in the budget is produced in five-day's term from the date of the term set for submitting the calculation. "
8. paragraph 3 of article 10 shall be amended as follows: "3. income tax for foreign legal entities from sources in the Russian Federation is held by the enterprise, organization, any other person paying such income, in the currency of the payment every payment enumeration.
The tax amount is credited to the federal budget at the same time with each payment of the income. If the proceeds of the equity paid to foreign participants of the enterprises with foreign investments and partners companies stocks, bonds, commodities or any other method, the calculation of the tax is made from the monetary equivalent of such proceeds in the form of stocks, bonds, commodities, as well as any other forms distributed in favour of a foreign party. In the same order are charged and transferred taxes and any other types of income from sources in the Russian Federation. "
Article 2. Pending the adoption of the Federal law, under paragraph 3 of article 1 hereof, when calculating taxable profit should be guided by the current procedure for determining the cost of production and sale of products (works, services) to be included in the cost, and the formation of financial results to account for taxation.
Article 3. This federal law shall enter into force on January 1, 1996 year.
Russian President Boris Yeltsin in Moscow, the Kremlin December 31, 1995, N 227-FZ