Value Added Tax / Austria
Austria has been added to the list of countries whose representative offices are entitled to VAT exemption on lease payments in respect of office and residential accomodation.
(Letter of the State Tax Service of 28 December 1995 No.HN-4-06/83H)
Excise duties / Import from Ukraine
As the Ukraine no longer levies excise duties on exported goods, Russia will now start to levy excise duties on imported goods from the Ukraine with effect from 24 January 1996.
(Presidential Decree No. 64 of 18 January 1996)
Shareholders / Increase in Charter Capital
It has been confirmed that the taxable profit of a shareholder in a Russian company is not affected by an increase in the par value of its shares or in the number of shares as a result of a bonus issue, where either of these follow an increase in charter capital after a revaluation of fixed assets.
(Letter of the State Tax Service and the Ministry of Finance of 28 November 1995 No. HN-6-01/618 and No. 125)
Corporate Law / Non-commercial organisations
As a further stage in the implementation of Part I of the Civil Code, a law has been issued relating to non-commercial organisations. Non-commercial organisations are those which do not have as a primary aim the generation of profits and which do not distribute profits amongst their participants. Legal entities that are members of a non-commercial 'association' have the right to use the services of that association (union) free of charge.
(Federal Law No. 7-03 of 12 January 1996)
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.
For further information please contact the firm on +007 503 232 5511 or enter text search 'Coopers and Lybrand' and 'Business Monitor'.
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