TRANSPORT TAX / RUSSIAN AND FOREIGN STAFF/ PAYMENT ORDER / EXEMPTIONS
Is has been confirmed that transport tax (1% of the payroll cost) must be paid by foreign legal entities. The payroll cost of foreign employees working in Russia must be included, but this does not apparently relate to seconded staff working in a Russian legal entity, i.e. staff no employed directly by the company for which they work. Tax payments must be made not later than 5 days after the filing deadline for the tax (30 days after the end of the quarter). Other payroll taxes are generally due at the moment the income is paid out to employees. If an enterprise has territorial branches or representations, transport tax is payable to each local budget where such branches are located in respect of the payroll of the employees working in these locations.
The new order applies to the whole of 1996. If companies have accounted for and paid transport tax on a different basis before the letter was officially published, no financial sanctions will be imposed. What is included within the term payroll fund for these purposes is explained in Instruction No. 89 of the State Statistics Committee. Significant salary components which are not subject to transport tax are business trip expenses in excess of the limits, medical insurance payments and cost of medical treatment and material aid and sums paid for 'improvement of living conditions'.
Letter of the State Tax Service of 1 August 1996 No. VZ-4-07/54n
CURRENCY CONTROL / IMPORT AND EXPORT OF RUSSIAN ROUBLES
Individuals, foreign and Russian, are allowed to take Russian roubles in and out of the country on the condition that the amount involved does not exceed 500 times the minimum monthly wage (currently approximately US $ 7,000)
Letter of the Central Bank of 19 September 1996 No. 331
For further information contact Bauke van der Meer on tel: +7 503 232 5511 fax: +7 503 232 5522 or e-mail directly: Click Contact Link or enter a text search 'Coopers & Lybrand' and 'Business Monitor'
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