With effect from 24 October 1995, a new Federal law has abolished the tax levied on the sale and purchase of securities. Tax is from now on only charged on the issue of securities with the taxable base being the nominal value thereof. The rate of tax is 0.8%.
(Federal Law N 158-3 dated 18 October 1995)
Further to our comment in the Tax News Reporter for the week ended 1 October 1995 regarding the status of double taxation treaties between Russia and other states, we understand that only minor administrative technicalities are holding up the ratification of the treaty with the United Kingdom by the Duma. There is therefore a reasonable expectation that it will be ratified in time to come into force from 1 January 1996. We also understand that the treaty with Turkey was returned by the Duma to the Ministry of Finance without having been ratified.
We understand that the latest Duma committee hearing on amendments to the VAT law has endorsed the principle that a service which is consumed overseas is an exported service which is not subject to VAT. Equally, a service consumed in Russia would be subject to Russian VAT. The provision is expected to pass the third hearing before being submitted to the Duma for incorporation into the law.
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 general guidance only and should not form the basis of specific decisions.
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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.
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