VAT / PHARMACEUTICAL PRODUCTS
A wide range of domestically produced and imported pharmaceutical products are currently exempt from Value Added Tax. In order to qualify for the exemption in future, the pharmaceutical product must be explicitly mentioned in an official list or be separately approved by a relevant authority. The exemption from profits tax on sale of pharmaceuticals granted earlier (see Government Regulation of 15 April 1996 No. 478) applies exclusively to domestically produced pharmaceuticals.
Letter of the Ministry of Finance No. 04-04-07 and State Tax Service VZ-4-03/31n of 10 April 1996
MEDICAL FUND CONTRIBUTIONS / SETTING OF DEBTS
Companies with debts to the Medical Insurance Fund (3.6% of payroll) can now enter into a special agreement to set off their debt against debts owed by other organisations included in the system for Compulsory Medical Insurance.
Order of the Federal Fund for Compulsory Medical Insurance of 29 March 1996 No. 23
CURRENCY LEGISLATION / IMPORT PASSPORTS
The import passport regime, which ensures that payments out of Russia relate to actual imports (Instruction of the Central Bank No. 30 and State Customs Committee 01-20/10538 of 26 July 1995) does not apply to goods imported under financial lease or to construction materials imported under turnkey construction contracts in which the value of separate materials is not indicated.
Letter of the Central Bank No. 285 and State Customs Committee No. 01-42/9482
Legal developments are usually reported in Tax News Reporter on official publication. This may be long after the law is issued.
This publication is intended for general guidance only and should not form the basis of specific decisions.
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