It has been reported that President Yeltsin has signed an amendment to the personal income tax law, which imposes new income tax rates. The law has not yet been officially published but is expected to be effective as of 1 January 1996. Annual income exceeding 48 million roubles (about $ 10,000) will be subject to tax at the rate of 35% tax, a 5% increase. The new rates are:
ANNUAL INCOME CUMULATIVE TAX
over 48 10 44+35%
Amounts in million roubles
PENSION FUND / SALARY PARTS
A new list has been issued containing types of remuneration that are exempt from 28% Pension Fund contributions. The exemption for material assistance has been defined more narrowly, so that some types of payments in kind may now be subject to Pension Fund contributions.
(Government Regulation of 19 February 1996 No. 52)
PROFIT TAX / ACCOUNTING / SMALL ENTERPRISES
The Ministry of Finance has issued an order on the basis of the Law "On the State Support of Small Entrepreneurs" (see Tax Alert 2/96), stipulating accounting requirements for small enterprises. Options for simplifying accounting include the omission of property records and needing to maintain nothing other than order books if the enterprise has an "insignificant number of transactions (as a rule 100 per month)".
(Order of the Ministry of Finance of the Russian Federation of 22 December 1995 No. 131)
Legal developments are 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.
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