VAT / CUSTOMS AND EXCISE DUTIES / IMPORT OF CARS

In order to import a car under the temporary import regime (exemption from VAT, customs duties and excise duties), all taxes must now be paid in advance to the customs authorities and will only be reimbursed after the car has physically left Russia. Should partial exemption be granted, amounts paid under the partial exemption rules will not be refunded.

Order of the State Customs Committee of 10 July 1996 No. 01-14/723

CURRENCY REGULATION / PROOF OF WORKS OR SERVICES CARRIED OUT

When making a payment from Russia abroad for a service or for goods imported from other CIS countries, proof must be provided that this service has actually been carried out or that the goods have actually been imported. The order which previously existed for all payments abroad, and which was superseded by the import passport regime, now re-enters into force for all payments to which the import passport regime does not apply. Banks are required to obtain a copy of the "act of performance", a document stating that the work or service has actually been carried out, or receive such documentation within 180 days after the payment has been made, and to maintain detailed accounting of payments abroad.

Telegram of the Central Bank of 8 August 1996 No. 312

PERSONAL INCOME TAX / EXEMPTION FOR CONSTRUCTION OF HOUSING

It has been clarified that certain expenses connected with construction do not qualify for the housing exemption in the personal income tax law. Amongst the expenses involved are the purchase of construction equipment and expenses relating to tests by technical authorities. The housing exemption in the personal income tax law applies to new construction, generally including refurbishment, and purchase of accommodation by individuals. The construction exemption amounts to 5,000 times the minimum monthly wage (currently in excess of US$ 70,000) and can be used 3 years in succession. The status of the letter is uncertain as the provision to which it refers is quoted incorrectly.

Letter of the State Tax Service of 16 May 1996 No. 08-1-06/448

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