TAX NEWS - 2010

Russian Federation Tax News

Approval of the form for requests to pay a monetary sum using a bank guarantee

The Order approves the form to be used for requests to pay a monetary sum using a bank guarantee, submitted by the tax authorities to a credit company that has issued a bank guarantee to a VAT taxpayer, in order to return to the budget excess VAT received/accounted for by a taxpayer under the accelerated procedure.


Amendments to the Russian Federation Tax Code aimed at discouraging external loans

Russian Federation State Duma is reported to have passed the third reading of amendments to the Russian Federation Tax Code, aimed at discouraging external loans.

According to the changes, for the period 1 January 2011-31 December 2012, a new interest limit of the Russian Federation Central Bank refinancing rate multiplied by 0.8 will be introduced for external foreign currency loans that are deducted for profits tax purposes.


Changes to tax administration rules

RF State Duma is reported to have passed the third reading of amendments to parts 1 and 2 of the RF Tax Code, and associated legislation. In particular, the document provides for the introduction of more effective rules for the Federal Tax Service to grant delays in paying taxes and investment tax loans, as well as increasing the fines for violations of tax and duties legislation.


Payment of Personal Income Tax by a company with several separate subdivisions in one municipal district

If a company has several separate subdivisions in a single municipal district, and is registered with tax authorities at the location of one of them, it should calculate and pay Personal Income Tax from the incomes of the employees of all of the separate subdivisions to a single tax authority. If a company is registered with the tax authorities at the location of each separate subdivision, then Personal Income Tax should be transferred to the budget at each separate subdivision's location.


Accounting for expenses associated with the construction of a building by a developer

Expenses associated with paying for electrical power and water, paid for by a construction company to supply the construction site of a building, are subject to inclusion into the initial cost of the completed fixed asset.