The Law on the 1997 Budget has set new rates for road users tax. Previously, trading and intermediary companies paid 0.15% (Moscow rate) of their turnover, whilst producers paid 2.5% of their turnover. Under the new law, which enters into force from 4 March 1997, the day of its official publication, rates are set at 2.5% of the trade margin for trading and intermediary companies, whilst the tax continues to be levied at 2.5% of the turnover for other companies. Rates may still vary locally: a fixed 1.25% goes to the Federal budget, whilst each region is allowed to set their own portion up to 1.25%. It is not clear from which date the new rates will have to be paid, and how the new law impacts locally set rates currently in force. We will inform you as soon as we receive clarification on this issue.
In addition, the Law on the 1997 Budget contains projected revenue for the tax on the purchase of foreign currency. This tax has been passed by the Duma but was rejected by the Federation Council, and accordingly, is not yet in force. The tax would be levied on the purchase of cash foreign currency at a rate of 0.5% of the rouble amount. Purchase of dollars through a bank account and subsequent withdrawal would not be taxable.
The tax treaties with Switzerland, the Czech Republic, Mongolia and Albania have now been officially ratified by Russia. The Swiss and the Czech treaty will enter into force at 1 January 1998. We will inform you about the date of entry into force of the treaties with Mongolia and Albania upon the release of the text of these treaties. The double tax treaty between Russia and Kazakhstan has been submitted to the Duma for ratification.
Federal Laws of 26 February No. 38-FZ, 43-FZ, 36-FZ, 32-FZ
Government Regulation of 28 January 1997 No. 95
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information contact Alla Shaulina on tel: +7 503 232 5511 fax: +7 503 232 5522 or e-mail directly: Alla_Shaulina@ru.coopers.com or enter a text search 'Coopers & Lybrand' and 'Business Monitor'.
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