The amendment on the Law on Personal Income Tax, described in our Tax News Reporter for the two weeks ended 3 March 1996, was officially published on 7 March 1996 and is effective as of 1 January 1996. The law does not clarify the position of tax being withheld on January and February salaries under the old rates. Tax withheld on salaries between 833,333 and 1,000,000 roubles monthly would have been overpaid and should be reimbursed, whilst on higher salaries tax would be due. These over or underpayments will probably need to be set off against future income tax liabilities.
(Federal Law of 5 March 1996 No. 22-FZ)
LICENCES / COLLECTION OF TAXES
If a taxpayer has tax arrears and penalties which have already been imposed, Federal executive bodies have the right to withdraw from the taxpayer any licence which has been granted over its activities. We understand this will be applicable once the authorities establish it is not possible to collect the tax. The federal authorities are instructed to elaborate the procedure.
(Government Order of 6 March 1996 No. 321-r)
PROPERTY TAX FOR ENTERPRISES / PROPERTY TAX FOR INDIVIDUALS
The Moscow local corporate property tax rate has been increased from 1.5% to 2%. The property tax rate for real estate, owned by "citizens" has now been imposed at a rate of 0.1% of the value of real estate. If the real estate consists living space, tax is payable at 50% of the deemed rent according to municipal standards. Payments are due after 1 April 1996.
(Laws of the City of Moscow of 21 February 1996 Nos. 5 and 6)
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 public guidance only and should not form the basis for specific decisions.
For further information contact the firm on +007 503 232 5511 or enter a text search 'Coopers & Lybrand' and 'Business Monitor'.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The New Turkish Commercial Code ("New Code") has been enacted and will enter into force in July 2012. One of the major changes brought by the New Code regards mandatory independent audits of corporations.
The law about payment of dividends has remained substantially unchanged for thirty years.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).