The Central Bank of Russia refinancing rate has been reduced to 24%. The interest rate determines a number of important items for tax purposes, including the maximum interest deduction for profits tax purposes for rouble loans.
Revaluation of fixed assets
In accordance with clarifications of the State Tax Service and of the Ministry of Finance the results of revaluation of fixed assets as of 1 January 1997 are not to be used in calculation of property tax and depreciation in 1997. The revaluation as at 1 January 1997 is to be performed in the course of 1997 and is to effect the balance sheet of the taxpayer for the first quarter of 1998.
Letter of State Tax Service of 25 March 1997 no. SSH-4-02/12n
"On the property tax on enterprises"
Relaxation of GKO rules
The CBR increased the number of allowed operations with GKOs, and in particular, it is now allowed to pledge GKOs not only to the Central Bank but to the other parties. GKOs can be transferred to and from dealers depository accounts as a result of pledge operations.
Order of the Central Bank no. 02-225 of 21 May 1997
Joint tax audits with the Ukraine
"Argumenty i Facty Agency" has reported that the Russian State Tax Service and the State Tax Agency of the Ukraine agreed to carry out joint tax audits of legal entities acting on the territory of both states. This has been announced by the Information Department of the State Tax Service after the inter-governmental agreement between Russia and the Ukraine was signed on 28 May 1997.
Comment
Apart from the change to the CBR refinancing rate, there is little of interest this week for the majority of companies.
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c.Business Monitor 1997 - +44 (0)171 820 7733
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