TAX NEWS - JUNE 2010

Russia Tax: Medvedev signs law on changes to Russian Federation Tax Code

03 June 2010 -- Russian President Dmitry Medvedev has signed the federal law "On amending Article 3463, part two of the Tax Code of the Russian Federation" that was passed by the State Duma lower house of parliament on May 14, 2010 and approved by the Federation Council upper house on May 26, 2010.

The federal law is aimed at the improvement of taxation of agricultural producers, the Kremlin press service reported on Thursday.

To this end, the order of charging and paying of penalties as a result of recalculation of tax obligations by taxpayers that applied the taxation system for agricultural producers (unified agricultural tax) on legal grounds and that on the taxable year results lost the right to use it, also due to the reasons beyond the taxpayer's control (due to the agricultural production specifics), is changed.

At present such taxpayers should, within one months after expiration of the taxable period in which they lost the related right, recalculate tax obligations for the whole fiscal period regarding the value-added tax, corporate profit tax, individual profit tax, corporate property tax, individual property tax, and pay penalties for the untimely pay of these taxes and advance payments on them.