Tax Alert 17/95 - 22 August 1995

EXCESS WAGES TAX - A REMINDER

Further to our Tax Alerts earlier this year on the subject of Excess Wages Tax ("EWT"), the purpose of this Tax Alert is to remind those representative offices of foreign legal entities which are subject to EWT that the deadline for filing their EWT calculations for 1994 is 1 September 1995 and that the payment deadline is 15 September 1995.

The letter of Ministry of Finance of Russian Federation dated 4 May 1995 No. 213/1 confirmed that EWT is levied only on foreign legal entities which are subject to Profits Tax by virtue of the fact that they are conducting entrepreneurial activities through a Permanent Representation. The Tax does not apply to foreign legal entities not performing taxable activities in Russia, although we would recommend that a letter asserting non taxable status be sent to the tax authorities.

If you require assistance with your EWT calculations or filings, please contact a member of our Tax department.

This publication is intended for general guidance only and should not form the basis of specific decisions.

For further information contact the firm on +750 2225 8600, or enter text search 'Coopers & Lybrand' and 'Business Monitor'.