4Annex.
Review of the Law in the Area of Tax Regulation and Civil Legislation1
The year of 2007 saw the continuation of reforming of the tax legislation aimed at its regulation and improvement. Practically all the chapters of Section Two of the Tax Code of the Russian Federation underwent amending during the year.
Let us briefly consider what the taxpayer should expect in 2008 and comment on the most substantial amendments.
Main Amendments to the Tax Code of RF
Value-Added Tax (VAT)2
In compliance with p.6 Art. 145 of the Tax Code, the eligibility for exemption (extension of the term of exemption) from execution of the taxpayer's responsibilities with respect to VAT should be proved by the following documents: an excerpt from the corporation's balance-sheet statement (submitted by the organization itself); an excerpt from the sales book; an excerpt from the revenue and expenditure and economic operations book (submitted by the self-employed individual (aka individual entrepreneur)); and a copy of the received and made out invoices book. Meanwhile, both corporations and self-employed individuals that had switched from the simplified taxation regime to the general one failed to submit the sales book, a copy of the received and made out invoices book, or an excerpt from balance-sheet statement. Since January 1, 2008, it will be an excerpt from the revenue and expenditure and economic operations book to be submitted by corporations and self-employed individuals that use the simplified taxation system. This document should complement the aforementioned ones that prove the eligibility for ax exemption.
Since January 1, 2008 , it will be only sales of the non-ferrous scrap that will be exempted from VAT (as introduced by sp. 25 p. 2 art. 149 of the Tax Code). This benefit will be applied in the mandatory order, while in 2007 it was also effective with regard to sales of ferrous metal scrap, while taxpayers enjoyed the right to refuse the benefit (as per p. 5 art. 149 of TC of RF).
Since 2008 exempted from taxation will become sales of goods, works and services produced and sold by public unitary enterprises under anti-TBC, psychiatric and psycho-neurological institutions, those of social protection or the population social rehabilitation, while until recently this benefit was granted solely to medical-production (labor) workshops under the noted institutions.
Since January 1, 2008, sales of medicines designated to the conduct of clinical research has become subject to the 10% VAT rate (p. 2 of art. 164 of TC of RF), and the same tax rate is applied to a concrete lot of unregistered medicines imported to the RF territory and designated for the conduct of the clinical research (p. 2 of art. 164 of TC of RF). Meanwhile, in compliance with sp. 4 p. 2 of art. 164 of TC of RF, codes of kinds of the noted products are to
1 This section was drafted using Consultant Plus.
2 The respective amendments were introduced by Federal Act of 17 May 2007 No. 85-FZ "On introducing amendments to chapters 21, 26, 26.2 and 26.3 of Section Tow of the Tax Code of the Russian Federation".
3
be set by the RF Government according to the National Products Classificator (NPS) and the Foreign Trade Commodity Classification (FTCC).
In the past (since 2006), there was no 180-day deadline for collecting documents with respect to services rendered by national taxpayers on transportation of goods imported in or exported from Russia and, basing on this, the RF Ministry of Finance demanded to identify the moment of setting the tax base in compliance with p.1 art. 167 of TC of RF, i.e. at the moment the respective service was provided4. Accordingly, the taxpayer was to submit to the tax office the documents, as per p.4 art. 167 of TC of RF, not later than on the 20th day of the month that followed the tax period when the services had been provided5.
The novelties also imply a substantial amendment in favor of taxpayers in p. 9 art. 165 of TC of RF and p.9 art. 167 of TC of RF that became effective as of January 1, 2008 and remain equally effective on relations started since January 1, 2007. Now in the event the taxpayer fails to submit to the customs agency a customs declaration (or its copy) to justify for the application of zero tax rate to his works (services), he should submit the documents no later than within 180 calendar days since the date of the mark that proves the exportation of the goods from (or the importation of the goods in) the territory of the Russian Federation made by the customs border offices on the carriage documents. In the event of the failure to submit the noted documents within the 180 calendar days, his operations on sales of works (services) are subject to the 18% tax rate. Meanwhile, in the event the taxpayer submits to the tax office at a later date documents that justify for the application of the zero tax rate, the earlier paid amounts of the tax are subject to refund, following the procedures and under terms, as per art 176 of TC of RF.
From the list of events when VAT should be restored excluded became the property transfer to the participant in the particular partnership (joint adventure agreement) or his successor in the event of allotment of his share from the property jointly owned by participants in the agreement or division of such property (sp. 2 p.3 art 170 of TC of RF).
Art 171 of TC of RF also underwent amending. Provisions of p. 5 art. 171 of TC of RF regulate application of rebates in the event the goods are returned to the seller (including the guarantee term in particular), refusal from them, change in conditions or dissolution of the respective agreement, and refund of the respective amounts of the partial payment only by sellers, rather than tax agents. Since 2008 the VAT rebates in such cases can equally be employed by the tax agents that exercise the duty of the tax agents, as per p.2 art 161 of TC of RF, and become payers of the tax.
3 The RF Government has failed so far to pass the respective resolution, but as per p. 2 of the Letter by the RF State Customs Committee of June 4, 2003, No. 01-06/22880 "On collecting VAT under importation of goods into the customs territory of RF", the decision on collection of the 10% VAT rate with regard to medicines and other medical articles can be taken by the customs office on the basis of documents submitted at the moment of the customs clearance, which prove that a given medicine or medical article has passed the state registration as such.
4 See the Minfin's Letter of 12.03.2007 No. 03-07-08/34.
5 See the Minfin's Letter of 30.08.2006 No. 03-04-08/183.
Personal Income Tax (PIT)6
Chapter 23 of the Tax Code of RF saw a great number of various amendments introduced therein. Those were both technical modifications and amendments that introduced critical changes in the taxation procedures.
To cite a particular example, the term "permanent representative offices" will be substituted by "separate divisions" (art. 208, 226 of TC of RF). Consequently, should they pay remuneration to private individuals, separate divisions of foreign organizations that do not operate in RF via a permanent representative office will have to exercise the tax agent's functions, so far as PIT is concerned.
An amendment was introduced to procedures of identification of the tax base on incomes received in kind, as per p.1 art. 211 of TC of RF. Under this category will fall partly paid for goods, works and services received by a private individual. In this case, while computing the PIT tax base, the market value of goods, works and services received by the private individual should be reduced by the amount he has paid for them.
Since 2008 incomes in the form of the material benefit received from saving on interest on the use of targeted loans (credits), which the taxpayer received and de-facto spent on construction or purchase in the RF territory of a house, apartment or shares in them, as well as a room (s), will not be included in the PIT tax base, provided, however, the private individual is eligible for a property rebate on construction or purchase of housing (sb. 1 p. 1 art. 212 and p. 2 art 224 of TC of RF).
The sums taxpayers receive to refund costs (a part of costs) they incur in regard to interest payments on loans (credits) (p. 35 art. 217 of TC of RF), as well as the sums of subsidies on purchase and/or construction of housing (p. 36 art. 217 of TC of RF) are no longer subject to PIT taxation, providing such subsidies were paid from the federal budget or the RF Subject's budget or a local budget.
While computing the amount of PIT on the material benefit in the form of a saved interest, the tax agency will now employ the refinancing rate effective as of the date when the private individual received the respective income. Sp. 2 p. 2 art. 212 of TC of RF has been amended in such a manner so that it bears a direct reference to the tax agent's responsibility for identification of the tax base with respect to the material benefit and computation, withholding and transferring PIT to the budget following the procedures as per TC of RF. An analogous responsibility is imposed on the credit institution with which the private individual concluded a deposit agreement.
The Tax Code of RF was complemented by art. 214.2, which concerns peculiarities of identification of the tax base in the event of receipt of income in the form of interest on bank deposits, while analogous provisions were taken off from p.2 art. 224. Since 2008 the private individual's taxable income will no longer comprise interest on Rb.-denominated deposits, which, as of the date of conclusion or extension of an agreement, were set at a rate not higher than the Bank of Russia's effective refinancing rate. This implies observance with two conditions: namely, the interest rate on such deposits has not been raised and the moment when the interest rate was greater than the refinancing rate occurred not later than 3 years ago.
6 As amended by Federal Statute of 24.07.2007 No. 216-FZ "On introducing amendments to Section Two of the
Tax Code of the Russian Federation and some other acts of the Russian Federation".
The procedures of taxation of some payments in favor of private individuals likewise underwent some changes.
More specifically, as per p. 3 art. 217 of TC of RF, per diem amounting to Rb. 700 (for each day of a business trip across the RF territory) and 2,500 (for each day of a business trip overseas) will no longer be subject to PIT.
As well, exempted from PIT (p.8 art. 217 of TC of RF) will become amounts of material relief payable both to a private individual who suffered from a natural calamity or other emergency situations and members of the family of an individual who died due to such disasters. Paying a material relief in such cases will not require a decision by the legislative or executive power, or by representative local self-governance bodies. In addition, exempted from PIT will be humanitarian and charity relief provided by charities to family members of individuals who died because of acts of terror in the RF territory.
An amendment was also introduced to p. 9 art. 217 of TC of RF, which consequently reads that exempted from PIT are amounts of compensations disbursed at the expense of funds received from operations that are subject to special tax regimes. Amounts of a full or partial compensation (payment) for rehabilitation vouchers the employer buys for his former employees who have retired due to disability or because of the retirement age are exempted from taxation.
In addition, now there exists a list of objects that fall under the category of sanatoriumresort and rehabilitation institutions (p. 9 art 217 of TC of RF), which includes sanatoriums, rehabilitation centers, resorts, medical-rehabilitation centers, health centers and children's sport camps, among others.
Since 2008 the procedures of granting benefits with regard to insurance compensations on voluntary insurance contracts will be modified, as per sp 3 p. 1. art. 213 of TC of RF. This particular benefit will also become available by voluntary personal insurance contracts that provide for compensations in the event of infliction of harm to one's health.
As concerns the voluntary life insurance contracts, the procedure of taxation of indemnities will no longer depend on their term, be that 5 years or less (sp. 2 p. 1 art. 213 of TC of RF). The tax will be withheld only from the amount that appears in excess of the sum of insurance contributions made over the whole period of effect of the contract, with account of incomes computed proceeding from the Bank of Russia's average annual refinancing rate. In the event of an early termination of such a contract, the insurance company is bound to calculate and withhold PIT, with the tax base being computed as a diff between the insurance indemnity due to the insured individual and the amount of insurance contributions made as per the agreement.
A specification was introduced to sp 4 p.1 art 213 of TC of RF, which now reads that insurance claims by voluntary pension insurance contracts upon the appearance of the grounds for pension will be exempted from PIT only if a private individual concluded such a contract in his own behalf. Plus, subpoint 4 sets procedures of taxation of payments in the event of an early termination of pension insurance contracts, except for dissolution of an insurance contract because of causes beyond the parties' control. While refunding the sum by such a contract to the private individual, an insurance company is bound to withhold PIT from the payment. An analogous procedure of taxation of payments is set with regard to cases of an early dissolution of non-government pension provision contracts (p. 2 art. 2131 of TC of RF).
In compliance with p. 3 art. 213 of TC of RF, should the employer pay amounts of insurance premiums by insurance contracts on other private individual's behalf, such amounts are taken into account while identifying the tax base, except for the cases when the employer insures private individual by the following contracts: compulsory insurance of private individuals and voluntary insurance contracts that provide for compensation for harm caused to the private individuals' life and health and/or medical costs they incurred. Since 2008 the list of contracts has comprised all other kinds of voluntary personal insurance contracts, as well as voluntary pension insurance ones.
Now PIT will also be withheld from sums paid by insurance contracts on private individuals' behalf by organizations or individual entrepreneurs, which (who) are not employers to the noted individuals (p. 3 art. 213 of TC of RF).
Another amendment was introduced to sp 3 p.1 art. 219 of TC o RF . Now the social rebate on rehabilitation is granted in the amount of insurance premiums the taxpayer paid on his family members' (spouse, parents and children under 18) voluntary insurance contracts. In addition, in compliance with the newly introduced sp. 4 p.1 art. 219 of TC of RF, taxpayers will become eligible for a social tax rebate from the amount of the following payments made over a given tax period: pension contributions by a non-government pension provision contracts and insurance premiums by a voluntary pension insurance contract. The taxpayers can conclude such contracts in his, as well as on his family members' (spouse, parents or adoptive parents, disabled children, including adopted ones, or under guardianship) behalf.
While filing the 2007 tax returns, the social tax rebate will be granted to the taxpayer according to new procedures. The previous version of art. 219 provides for the capping of the maximum amount of social rebates. In compliance with the latest amendments, the uniform maximum capping of the amount of social rebates in conjunction with expenses on the taxpayer's education, his medical treatment and expenses on non-government pension provision contracts and voluntary pension insurance has now been increased up to Rb. 100,000. So, the taxpayer will have to make a choice on his own as to which kinds of his expenses, and at which amounts, will be accounted within the limits of the maximum value of the social tax rebate.
Since 2008 (sb. 1 p.1 art. 220 of TC of RF) taxpayers will be able to reduce incomes under assignment of right of demand with regard to contracts on participation in the so-called shared construction, those on investing in the shared construction or other contract in conjunction with the shared construction by the sum of expenses conditioned by receipt of the noted incomes, providing that such costs have been actually incurred and proved by documents.
The property tax rebate will no longer be available in the event the housing construction or purchase costs were paid for at the expense of subsidies allocated from the federal budget or an RF Subject's budget or a local budget. As concerns receipt of an income in the form of labor compensation, the date of the taxpayer's actual receipt of the income is recognized as the last day of the month for which the income was accrued to him for the completed labor duties, as per the labor contract (p.2 art. 223 of TC of RF). The new version of this particular provision specifies as follows: in the event an employee resigns prior to the last day of the calendar month, the date of the actual receipt of income is recognized as the last day of the work for which his income was accrued. So, the employer will have to calculate, withhold and
7 In the new version, this provision embraces legal relations emerged since 2007.
8 Applicable to legal relations emerged since 2007. 594
transfer to the budget PIT from the sum of the employee's salary no later than on the date of his resignation.
The list of private individuals that must independently calculate and pay to the budget PIT from the amount of their incomes, as well as to file the PIT return, and submit it to the local tax office has been complemented. In 2007, in particular, this category included private individuals that received remuneration from other individuals that were not tax agents on the grounds of civil contracts and housing rental contracts in particular (sp. 1 p. 1 art. 228 of TC of RF). Since 2008 under this category have also fallen private individuals that receive remuneration by such agreements from organizations that are not tax agents, for instance, credit institutions that pay a private individual an income by their promissory notes or in conjunction with dealer transactions that involve financial instruments. Whereas private individuals can enter into civil, as well as labor, contracts with other private individuals, there was introduced an amendment according to which the private individual that received a remuneration from other private individual should on his own calculate and pay PIT and file and submit his tax return to the tax office.
Since 2008 incomes received in the form of gift and succession are subject to filing, while it is heirs (successors) to authors of works of science, literature, arts, as well as of inventions, useful models and industrial samples, who will have to pay PIT on them (sp. 6 p.1. art. 228 of TC of RF); as well, private individuals that receive incomes in cash and in kind, except for cases stipulated in p. 181 art 217 of TC of RF9 (sp. 7 p.1 art 228 of TC of RF) will likewise have to follow the same procedure.
Russian military personnel stationed overseas are recognized as the RF residents, regardless of the actual length of stationing in the RF territory (p.3 art. 207 of TC of RF). Now they are relieved from the obligation to file on their own their incomes received from sources outside RF and to pay PIT from them (sp. 3 p.1 art. 228 of TC of RF)10.
Uniform Social Tax (UST)^-
A number of amendments concerning the uniform social tax were introduced to Chapter 24 of the Tax Code of RF.
12
Specifically, an amendment was introduced to p.1 art. 236 of TC of RF12, which now reads that payments to foreign citizens and stateless individuals made by labor contracts and civil contracts whose subject is execution of works, provision of services, providing such individuals operate outside the RF territory, are exempt from UST.
It was earlier provided for in sp. 5 p. 1 art. 238 of TC of RF that incomes of members of the peasant (farmer) company received from production and sales of agricultural products, their processing and sales are exempt from UST for the term of 5 years beginning the year of the company's registration, while since 2008 the benefit became applicable only to the company's head. In compliance with amendments introduced to p.2 art 236 of TC of RF, while
9 Incomes in cash and in kind received from private individuals as a gift, except for cases of giving real estate, means of transportation, shares and stock, unless provided for otherwise in the Code.
10 Applicable to legal relations emerged since 2007.
11 The respective amendments were introduced by Federal Act of 24.07.2007 No. 216-FZ "On introducing amendments to Section Tow of the Tax Code of the Russian Federation and some other legal acts of the Russian Federation".
12 Applicable to legal relations emerged since 2007.
identifying the object of levying UST, actually incurred and proved by documents operational costs should be excluded from incomes earned by heads of such companies.
Since 2008 by civil contracts it is only the subcontractor's remuneration, rather than all the payments, that became subject to UST (sp. 2 p. 1. art. 238), while payments to compensate for costs are not subjected to taxation.
According to the version of sp.1 p. 1 art. 239 of TC of RF effective until 2007, corporations of any organizational and legal form were exempt from UST as long as amounts of payments and other compensations do not exceed Rb. 100,000 over a given tax period per each disabled private individual. Since 2008 this benefit became equally available for individual entrepreneurs and private individuals that are not recognized as individual entrepreneurs.
According to amendments introduced to art. 242 of TC of RF, the date of the actual receipt of income for legal counselors that exercise their professional activity at the Bar, bureau or legal consultation offices is the day the respective establishment pays the income to them, including in particular the day the income is transferred to the counselor's bank account.
Tax office on its own sets the amount of monthly forward payments individual entrepreneurs, counselors and notaries should transfer. The calculation is made on the basis of data over the prior tax period (p.1 art 244 of TC of RF). Should the noted individuals' incomes grow by more than 50% in the current tax period, they are to file and submit a revised tax return and provide therein sums of the supposed income over the current tax period (p.3 art 244 of TC of RF), and this should be done within a month upon the fact of such a rise in their income has been established.
Procedures of calculation and payment of UST on incomes of counselors that receive those though the Bar, bureaus and legal consultation offices are set by p. 6 art 244 of TC of RF, while procedures of calculation and payment of UST by counselors that have established their own offices has not been set so far. This gap was bridged by an amendment to this particular point, which reads that the noted individuals are bound on their own to calculate and pay UST on incomes generated by their professional activity, less costs associated with income generation, following procedures set for self-employed individuals. Meanwhile, along
13
with their UST tax return, counselors submit to the tax authority a note by the Bar, bureau or legal consultation office on amounts of the tax paid on their behalf in the last tax period (p.7 art 244 of TC of RF).
In compliance with a new version of p.3 art 243 of TC of RF, monthly forward payments are to be accrued not only during reporting periods (between January and September), but over the whole tax period, including October, November, and December in particular. A revision was introduced to p. 4 art 243 of TC of RF, according to which, the amount of monthly forward payments due to the budget of extrabudgetary funds is set in even Rb, with standard rounding rules in effect: that is, amounts under 50 Kopecks are taken off, while 50-plus ones are rounded to the nearest Rb.
Yet another amendment worth paying attention to was introduced to p.8 art. 243 of TC of RF. The novelty sets procedures of payment of UST and filing forms of the tax return by separate divisions of Russian companies beyond the RF territory. While running their balance sheets and cash clearing accounts, they may not be registered by the national tax authorities,
13 The form of which has not been approved by the Federal Tax Service as yet. 596
which is why UST on behalf of private individuals employed in such separate divisions will be payable by the head organization's domicile.
Corporate Profit TaxcA
Chapter 25 of the Tax Code of RF also underwent serious modifications. Let us center on the most substantial amendments.
More specifically, the legislature introduced amendments to Art. 251 of TC of RF that concerns revenues not accounted in the course of identification of the respective tax base.
Until 2008, while identifying the corporate profit tax base, one did not consider incomes in the form of assets, property rights or non-property rights which had monetary value and which were received in the form of contributions to the authorized (joint-stock) capital (fund) of an organization (including the income in the form of the excess of the cost for stock (shares) placement over their face value). An amendment was introduced into p. 1 art. 251 of TC of RF (which consequently became p. 3.1.), which reads that amounts of VAT due to a tax rebate available for the receiving organization, as per Chapter 21 of TC of RF, in the course of assignment of assets, non-material assets and property rights as a contribution to the authorized capital of organizations or installments in shared funds of cooperatives may not be included in the composition of the receiving party's taxable revenues. This novelty is applied with account of provisions of art. 170, 171 and 277 of TC of RF. Thus, in compliance with p.3 art. 170 of the Code, in the event of a transfer of assets (non-material assets, property rights) as a contribution to the authorized (joint-stock) capital of economic companies (as well as installments in shared funds of cooperatives), the granter is bound to restore VAT, while the grantee enjoys the right of receiving the respective amounts of the tax (which are consequently reflected in concomitant documents) for a further rebate (p.11.art. 171 of TC of RF). The new sp. 3.1 p. 1 art 251 of TC of RF specifies that the grantee should not include such VAT amounts due to further rebate in the composition of his revenues.
Amendments introduced to p. 21 art.251 of TC of RF emphasize that the taxpayer has a right not to include in the composition of his revenues amounts of accounts payable with regard to taxes and levies, penalties and fines before budgets of different tiers, as well as contributions, penalties and fines before budgets of the state extrabudgetary funds, which have been written off and/or reduced in any other way, as per the RF law or following an RF Government's ruling15.
As dictated by sp.1 p.2 art. 251 of TC RF, while calculating the corporate profit tax, one traditionally should not consider targeted receipts, that is, admission, membership fees, joint-stock contributions, charity donations to/in favor of non-for-the-profit organizations for the sake of maintenance of their authorized operations. The benefit is applicable to the housing owners' companies, housing, agricultural, garage-housing, housing-construction cooperatives and other specialized consumer cooperatives. Such non-for-the-profit organizations can form their reserve for the sake of holding repair operations, capital refurbishment of the common property in a manner, as per art. 234 of TC of RF. Such reserves can be completed by means of special contributions by members of a given cooperative, rather than by contributions and
14 The respective amendments were introduced by Federal Act of 24.07.2007 No. 216-FZ "On introducing amendments to Section Tow of the Tax Code of the Russian Federation and some other legal acts of the Russian Federation".
15 Interestingly, the effect of this provision covers regal relations emerged since January 2005.
donations. For the purpose of taxation such contributions are recognized as targeted ones and they should not be included in the CPT tax base (sb. 1 p. 2 art. 251 of TC of RF)16. This novelty is particularly important, as referring to the closed list of revenues, which p. 2 art. 251 of TC of RF attributes to targeted receipts, the Minifin of RF earlier refused to attribute to targeted contributions compulsory payments for repairs of the housing owners companies' common property.
Since 2008 there has become effective yet another condition for the possibility for accounting in the composition of expenditures on labor compensation of amounts of payments by long-term life insurance agreements a company concludes in favor of its staff: Such a contract should be concluded with a Russian corporation that has a license to conduct the respective kind of operations. Besides, the voluntary life insurance contract can provide for indemnity in the event the insured individual's health suffered from harm.
In compliance with an amendment introduced into par. 4 p. 16 art. 255 of TC of RF, a non-government pension contract can provide for a life payment of pension, and an organization can include insurance premiums by such contracts in their labor compensation expendi-
17
tures .
Since 2008 the company can complement its list of expenditures on insuring its staff with premiums to voluntary personal insurance agreements, which are concluded exclusively for the case of death of the insured employee or his disablement resulting from his exercising labor obligations (par. 6 p. 16 art. 255 of TC of RF).
Since 2008 the maximum annual amount of premiums by such contracts was increased from Rb. 10,000 up to 15,000, and that is the amount an organization can include in the composition of its expenditures while calculating its corporate profit tax over a given tax period (par. 10 p. 16 art. 255 of TC of RF).
Since 2008 the assets, results of an intellectual activity and other intellectual property objects with the length of the useful exploitation over 12 months and the original value of over Rb. 20,000 will be recognized as depreciated assets.
The original cost of means of transportation by which the application of a decreasing coefficient has now doubled, while prior to 2008, while calculating depreciation by passenger cars and minivans with the initial value of over Rb. 300,000 and 400,000, respectively, organizations had to employ a special decreasing coefficient equaling 0.5 (p. 9 art. 259 of TC of RF). By contrast, since January 2008 the said coefficient is applicable solely to passenger cars (minivans) with the initial value of over Rb. 600,000 (800,000).
Chapter 25 of the Tax Code was complemented with a new article (268.1) which specifies peculiarities of recognition, for taxation purposes, of revenues and expenditures in the event of the purchase of an enterprise as a property complex.
Yet another amendment is aimed at the legal fixation of the timeline of notification of the decision making regarding which of separate divisions will become the payer of corporate profit tax. Thus, organizations that have several separate divisions within the territory of a given RF Subject, have the right not to distribute profits across them, but to pay the tax to the RF Subject's budget through one of them. To do this, a corporation should notify of the decision of a local tax office in the separate divisions' locations and identify the one responsible for paying the tax (par. 2 p.2. art 2888 of TC of RF).
16 Applicable to legal relations emerged since 2007.
17 Applicable to legal relations emerged since January 2005. 598
Should a Russian corporation have separate divisions located outside Russia, the corporation should transfer corporate profit tax and file tax returns in tits domicile, as per amendments made to p.4. art. 311 of TC of RF.
Taxpayers enjoy the right to establish in the tax accounting a reserve to pay for employees' holidays. Now there have been established the reserve adjustment procedures: if the amount of the reserve proves to be smaller than the amount of holidays payments plus UST with regard to unused vacations, the corporation should increase the reserve at the expense of labor compensation expenditures on. Should the amount of the reserve appear greater than the amount of holidays payments plus UST by unused holidays, it should be cut down, while the amount of the diff should be included in the composition of non-operating gains (p.4 art. 324.1 of TC of RF).
18
State Duties
Since 2008 the amount of the state duty for the state registration of means of transportation coupled with the issuance of state registration plates, as well as the issuance of metal state registration plates "Transit" for tractors, road-construction and other self-propelled units is down from the previous Rb. 400 to 200 (pp. 29 and 32 p.1. art. 333.33 of TC of RF).
As well, the amount of the state duty for the issuance of the tractor driver's certificate was set, with the hard copy in paper worth Rb. 100 and the plastic one - 200 (sp. 36 p.1 art. 333.33 of TC of RF), and another 30 Rb. should be paid for the certificate that proves the granting of those (sp. 38 p.1 art. 333.33 of TC of RF).
The Rb. 500 state duty was set for the granting of educational institutions with certificates of their equipment's consistency with requirements of the educational process for consideration by the respective agencies of the matter of accreditation and issuance of licenses to them to train tractor drivers and operators of other self-propelled units.
The Simplified Taxation System (STS)19
The list of taxpayers not eligible for employment of STS was set by p.3. art. 346.12 of TC of RF and comprised foreign organizations that have their subsidiaries, representative offices and other separate divisions in the RF territory (sp. 18 p.3 art 346.12 of TC of RF). Since 2008 any foreign organization may not resort to STS, regardless of whether or not it has subsidiaries.
Organizations and self-employed individuals transferred to the single presumptive tax system, as per art. 26.3 of TC of RF, by one or several kinds of entrepreneurial activities, enjoy the right for employment of the simplified taxation system in regard to other kinds of their entrepreneurial activities (p.4 art 346.12 of TC of RF), while caps on the number of employees and value of capital assets and non-material assets in respect to such organizations and individual entrepreneurs are identified proceeding from all the types of their operations. Caps on the amount of their gains were abrogated in 2006, while in 2007 the value of their receipts was regulated and identified by kinds of operations that are taxed in compliance with the gen-
18 The respective amendments were introduced by Federal Act of 24.07.2007 No. 216-FZ "On introducing amendments to Section Tow of the Tax Code of the Russian Federation and some other legal acts of the Russian Federation".
19 The respective amendments were introduced by Federal Act of 17 May 2007 No. 85-FZ "On introducing amendments to chapters 21, 26, 26.2 and 26.3 of Section Tow of the Tax Code of the Russian Federation".
eral taxation regime. So, if organizations already transferred to SPT decide to employ STS by individual kinds of their operations, their gains over 9 months of 2007 should account for less than Rb. 15 m (with account of application of the deflator coefficient).
A number of amendments were introduced in the list of expenditures which taxpayers that have opted for "revenues less the amount of expenditures" as an object of taxation can take into account while identifying their tax base by STS.
Specifically, it is allowed to take into account expenditures on completion, equipping, reconstruction, modernization and technical rearmament of capital assets in the period of employment of the simplified taxation system (sp.1 p. 1 of art. 346.16 of TC of RF), which are found with account of provisions of p.2 art. 257 of TC of RF and take effect since the moment of placement of capital assets in operation (p.3 and p.4 art. 346.16 of TC of RF).
Taxpayers may not include the costs incurred in conjunction with voluntary insurance in expenditures accounted while calculating the tax payable due to application of the simplified system of taxation, but it is now allowed to consider all kinds of costs associated with the compulsory insurance of employees and property (sp. 7 p.1 art 346.16 of TC of RF).
In compliance with sp. 23 p.1 art. 346.16 of TC of RF, the taxpayers that have employed STS could, beginning January 2006, consider expenditures on payments for the value of goods purchased for their further sale, including costs of storing, servicing and transporting goods for sale, providing they observe with two conditions: namely, such goods should be sold, while expenditures associated with their sales should be paid for. The newly introduced amendments have taken off the former requirement, and taxpayers now can recognize the noted expenditures on purchased goods upon an actual payment for them, regardless of the sale of the said goods.
The list of expenditures was complemented by those on servicing the control and cashier's equipment (CCE) and on disposal of solid household waste (pp. 35 and 36 p.1 art 346.16 of TC of RF). The expenditures on servicing CCE should be regarded as a positive step, as it is chiefly trade organizations that employ STS and the servicing of CCE for them is directly associated with their profile operations.
The novelties also directly state (sp. 22 p.1 art 346.16 of TC of RF) that expenditures presently comprise amounts of taxes and levies paid in compliance with the RF law on taxes and levies, except for the amount of the tax paid as per art. 26.6 of TC of RF.
While accepting a forward payment from buyers, the vendor organization includes thus received amounts in the tax base in the reported (tax) period of their receipt. Meanwhile, TC of RF earlier failed to give an answer to the question as to how the tax base should be corrected in the event the vendor returns earlier received forward payments. At the same time, the 20
RF Minfin specified that in the event taxpayers return earlier received down payments, the revision of the tax base on the tax paid in conjunction with the use of STS is made over the reporting period in which the said amounts were received. Since 2008 such a procedure of return of earlier received forward payments has been set by the law (p.1 art. 346.17 of TC of RF).
Peculiarities of calculation of the tax base in the event of the taxpayer's switching to STS from other taxation regimes and vice versa (art. 346.25 of TC of RF) have been specified by the respective amendments.
20 See letters of Minfin of 11 April 2007 No. 03-11-04/2/98 and of 09 April 2007 No. 03-11-04/2/96. 600
In its new version, p. 2 art. 356.25 of TC of RF completes the earlier existed legislative lacuna, as it was required to recognize revenues as of the date of the transition to calculation of the tax base of corporate profit tax using the accrual method, with the revenues being understood as amounts of payments (debt repayment).
Also, modifications were introduced into provisions that regulate matters of employment of STS by individual entrepreneurs who operated using a patent. The list of kinds of entrepreneurial activities exercise of which grants the right for employment of the patent-based STS has been brought in conformity with the General Russian Nomenclator of Kinds of Economic Activities (GRNKEA).
Another novelty became a limitation of the term during which one can switch from the patent-based STS to the general procedure of employment of STS and vice versa. Such a transition is now possible only upon expiration of the period on which the patent was granted (p.3 art. 346.25.1 of TC of RF). Having breached the conditions of employment of the patent-based STS, the individual entrepreneur looses the right to employ the patent-based STS in the period on which it was granted, and in such a situation only transition to the general taxation regime will be possible (p.9 art. 346.25.1 of TC of RF).
According to the general rule, the patent is effective only in the territory of the RF Subject wherein it was issued. Presently, having such a patent, the taxpayer has the right to apply for another one in the jurisdiction of another Subject of RF (p. 5 art. 346.25.1 of TC of RF).
In compliance with amendments to p.9 art. 346.25.1. of TC of RF, an individual entrepreneur is bound to advise the tax office of the loss of rights to employ the patent-based STS and transition to another taxation regime within 15 calendar days from the beginning of employment of the another regime of taxation; he will once again obtain the right to switch to the patent-based STS not earlier than in 3 years after he has lost the respective right.
In compliance with art. 346.21 of TC of RF, individual entrepreneurs enjoy the right to cut down the cost of the patent by the amount of insurance premiums on the compulsory pension insurance payable over the respective period of time, as per the RF law, however, as stipulated in the noted article, the value of the patent cannot be reduced by more than 50%.
The reduction in the value of the patent by the amount of insurance premiums is made in compliance with p. 10 art. 346.21 of TC of RF, when one pays the residual cost of the patent upon the end of the period on which it was granted. An addition to the procedure reads that the residual part of the cost of the patent is subject to reduction by the amount of insurance premiums on the compulsory pension insurance, while there is no cap on the amount of such premiums.
As well, amendments were introduced to p. 10 art. 346.25.1 of TC of RF, which reads that taxpayers have to conduct the accounting of revenues and expenditures for the purpose of calculation of the tax base by the tax in the Revenue and Expenditure Accounting Book of organizations and self-employed individuals that employ STS, the form and procedures of completion of which are subject to Minfin's approval.
Presumptive Tax (PT)21
Since January 2008 procedures of application of PT have changed: the greater fraction of new provisions have now directly concerned trade and public catering organizations. As well, they specify kinds of entrepreneurial activities to certain kinds of which the system of taxation in the form of PT can be applied.
Specifically, so far as the public catering services are concerned, such services rendered by educational, health care and social network institutions may not be transferred under the PT regime.
Since 2006 it became possible to employ PT to provision of temporary stay services (in the event the total dormitory area in each object that renders such services was under 500 sq.m.) (sp. 12 p.2 art. 346.26 of TC of RF). The amendments introduced since 2008 specify that it is the area of temporary residence facilities, rather than dormitory facilities, that is used for calculation of areas in each object.
The definition is given of the temporary residence facility, which is now understood as a facility used for the temporary stay of private individuals (an apartment, a room in an apartment, a private house, cottage (or their parts), a hotel room, a room in a hostel, and other facilities). The total area of facilities designated for temporary stay is found on the basis of inventory records and property documents on objects of provision of the temporary stay services (agreement of purchase and sale, rental (sub-lease) contract, technical passport, plan, explication, among others).
While calculating the total area of temporary-stay facilities of hotel-type objects (hotels, campings, hostels, etc.), one should not consider the public space areas (lobbies, corridors, stairways, shared bathrooms, saunas and showers, restaurants, bars, canteens, among others), as well as the area occupied by administrative and operational facilities.
Since 2008 services on lease of trade locations are split into two separate kinds of activities that can be transferred under the PT regime:
1). Provision of services on the assignment under temporary ownership and/or use of trade locations (sp. 13. p.2 art. 346.26 of TC of RF):
- points of trade located in the objects of a stationary trade network without trade halls;
- objects of a non-stationary trade network;
- objects of organization of public catering without a hall designated for servicing customers;
- a basic rate of return has been set depending on the area of thus assigned trade locations.
2). provision of services on the assignment under temporary ownership and/or use of land lots for organization of trade spots in the stationary trade network, as well as for placement of objects of a non-stationary trade network (counters, kiosks, containers, and other objects) and objects of organization of public catering that do not have indoor customer service facilities (sp.14. p.2 art. 346.26 of TC of RF).
- a basic rate of return has been set depending on the area of thus assigned trade locations.
An additional restriction has been introduced with regard to employment of PT by corporations in the event they exercise their operations in the framework of a trust agreement, as
21 The respective amendments were introduced by Federal Act of 17 May 2007 No. 85-FZ "On introducing amendments to chapters 21, 26, 26.2 and 26.3 of Section Tow of the Tax Code of the Russian Federation".
well as, a situation when the taxpayer may fall under category of the largest taxpayers (p.2.1 art. 346.26 of TC of RF).
The article has been complemented with new items (pp. 8 and 9 of art. 346.26 of TC of RF) which set transitional provisions with respect to application of VAT rebates. Overall, they appear analogous to those set for organizations and entrepreneurs that employ PT. Once they opt for transition to PT, they have the right to apply for the rebate of the amounts of VAT they have paid from down payments prior to the transition to PT, providing they are in possession of documents that prove that the buyer has returned the amount of the tax due to the taxpayer's transition to PT (p.8 art. 346.26 of TC of RF).
Once the taxpayer returns to the general taxation regime, he has the right to apply for VAT rebates with regard to amounts of payments made in his favor by goods (works, services, property rights) that have not been used in operations subject to PT in the general order, as per Chapter 21 of TC of RF (p.9 art. 346.26 of TC of RF).
Revisions introduced into art. 346.27 of TC of RF imply that, while finding the value of the K2 coefficient, one does not consider the actual period of conducting a given activity. Meanwhile, it was set that the adjusting K2 coefficient can be applied for at least one calendar year. In the event a representative body fails to pass the K2 value with a legal act until the start of next calendar year and/or the documents did not come into effect, in next calendar year the value of the K2 coefficient remains unchanged and equals the one effective in the prior calendar year (p.7 art. 346.29 of TC of RF).
In the new version of par. 9 art. 346.27 of TC of RF, services associated with the intermediate maintenance of cars do not fall in the group of services on maintenance and repair of means of transportation for the purpose of PT. Accordingly, PT is not applicable to such services and the respective taxes should be paid according to the general taxation regime or the STS one.
The concept of "retail trade" was modified, and the following operations may not become subject to transition to PT: sales of gas in cylinders; sales of trucks and special vehicles, trailers, semitrailers, buses of any types; goods by samples and catalogues outside the stationary trade network (including those delivered by post), as well as through teleshops and computer networks); and delivery of medicines by beneficial (free) prescriptions.
Changes made in par. 15 of art. 346.27 of TC of RF read that slot machines falls into the category of objects of the stationary trade network that has no floor; at the same time these objects are excluded from the list of objects of organization of public catering that do not have trading area for customers (par. 21 art. 346.27 of TC of RF). Meanwhile, culinary shops (departments, counters) were equally included in the list of objects of public catering organizations that do not have a trading floor.
Prior to the most recent amendments the trade spot was defined as a location used for exercising purchase and sale transactions, while since 2008 the concept of trade spot has become different from that of stationary trade spot and their basic return rates are set individually.
Trade spots include buildings, structures, facilities (their parts) and/or land sites used to conclude purchase and sale transactions, as well as objects of retail trade and public catering organizations that do not have a trade floor and customer service areas (such as kiosks, among others, which can be located within buildings, structures, and facilities), counters, and tables (including those located on land sites), land sites used to place objects of retail trade (public
catering) organizations that do not have trade areas (customer service facilities), counters, tables, and other objects (par. 30 art. 346.27 of TC of RF).
By contrast, stationary trade spot is a location used to conclude purchase and sale transactions within a stationary trade network objects. They also include land lots leased to organizations or individual entrepreneurs for the sake of organization of a stationary trade network (par. 31 art. 346.27 of TC of RF).
Yet another modification concerns automobile transportation services. As concerns such services, the amount of PT will be set depending on kinds of transportation services, that is, passenger or cargo ones. In the latter case the physical indicator remains the number of vehicles used to transport cargo, while in the former - the amount of PT will depend on the number of seats in a given vehicle. The basic profitability per seat is set at the amount of Rb. 1,500 (p.3 art. 346.29 of TC of RF).
Corporate Property Tax22
The object of levying this particular tax for Russian corporations remains movable and immovable property which is accounted on their balance sheet as objects of capital assets, as per the set accounting procedures (p.1 art. 374 of TC of RF). As p.1 art. 374 of TC of RF has been amended, now the aforementioned provision no longer concerns trusted property or the one acquired under trust, and it is the trust founder that is taxed in such a situation. Meanwhile, the responsibility to pay taxes with regard to property of a mutual fund that was trusted to its management company since 2008 was laid upon the latter, rather than the founder of the trust (art. 378 of TC of RF).
While identifying the tax base (art. 376 of TC of RF), the average value of the property, recognized as an object, over the reporting period will be found as quotient from the division of the amount received resulting from the addition of values of the residual cost of the property as of the first date of each month of the reporting period and the 1st date of the month following the reporting period by the number of month in the given reporting period plus 1. The average annual value of the property recognized as an object of taxation over the tax period is calculated as quotient from the division of the amount found resulting from the addition of values of the residual cost of property as of the 1st date of each month of the tax period and the last date of the tax period by the number of months in the tax period plus 1.
Novelties were also introduced to art. 381 of TC of RF: now there has been introduced the third condition upon observance with which residents of a special economic zone (CEZ) can enjoy a corporate property tax benefit: that is, their main assets should be used within a SEZ territory in the framework of agreements on creation of the SEZ.
The amount of an advance payment of the property tax with regard to the foreign organization's real estate object is calculated after the end of the reporting period as a product of the tax rate by H of the inventory value as of the beginning of the tax period (p.5 art. 382 of TC of RF). This item was complemented by a new provision which sets procedures of calculation of the amount of the corporate property tax and the respective advanced payments in a
22 The respective amendments were introduced by Federal Act of 24.07.2007 No. 216-FZ "On introducing amendments to Section Tow of the Tax Code of the Russian Federation and some other legal acts of the Russian Federation". 604
situation(s) the foreign organization purchased or sold the real estate object during the tax period.
To bring the procedures of payment of advances in conformity with art. 382 of TC of RF, the respective amendments were introduced to art. 384 and 385 of TC of RF: while calculating the tax by domicile of organizations' separate divisions or with regard to immovable property objects located outside the organization or its separate divisions' dpmicile, the tax base is set as H of the average value of the said property.
There was introduced a new article, 368.1, which deals with elimination of double taxation in regard to corporate profit tax. A Russian organization can offset its property tax due with the amount it paid outside the RF territory, in compliance with another state's legislation, on its property located in the said state's territory within the limits of the amounts due in the RF territory. To obtain such an offset, the organization has to submit to the tax authorities in its domicile a respective application and a document which proves that the tax was paid overseas, which should be duly verified by the respective foreign state's tax authorities. Both documents should be appended to the corporate profit tax return for the year in which the tax was paid outside the RF territory.
Land Tax
The following modifications were introduced with regard to the land tax.
The amendments set procedures of identification of the tax base in respect to land sites located in the territory of several municipal entities (art. 391 of TC of RF). In this case the tax is calculated individually by each municipal entity, and the tax base by each part of the land site is set as a fraction of its cadastre value calculated in proportion to the share of the area in the territory of the municipal entity which the site occupies.
The reporting periods by the tax shall be the 1st, 2nd and 3rd quarters of the calendar year.
Since 2008 the procedures of informing taxpayers of the cadastre value of land sites is to be set by the RF Government (p.14 art. 396 of TC of RF).
In the event the land site is used for construction of housing, increasing coefficients should be employed to calculate the land tax. Organizations and entrepreneurs that have completed construction of housing (except for individual construction operations) within 3 years become eligible for a partial refund of the earlier paid land tax. To calculate the amount of the tax refund due, one should recalculate the land tax paid during the construction period using coefficient 1. The amount of the land tax resulting from such a calculation remains in the budget, while the rest will be recognized as an excessive payment and as such is due to be refunded to the taxpayer.
In compliance with amendments introduced to the said points, the noted 3- and 10-year periods start from the date of the state registration of the right for land lots wherein the housing construction is in progress (pp. 15 and 16 of art. 396 of TC of RF).
Modifications were also introduced in p.1 art. 397 of TC of RF: the timelines for advance payments of the land tax may not be set earlier than the calculation by advance payments is presented, i.e. the final date of the transfer of the advance payment of the land tax to the budget may not be earlier than the final date of the month that follows the reporting period.
Modifications in the Sphere of Civil Legislation
Autonomous Institutions
Federal Act of 03.11.2006 No. 174-FZ "On autonomous institutions" came into effect since 2007. The act set a new type of the public (municipal) entity, namely, autonomous institution.
As a reminder, autonomous institution is a non-for-the-profit organization established
23
by the Russian Federation, its Subject or municipal entity23 for the purpose of conducting works, providing services in order to exercise powers of government and local self-governance agencies in the areas of research, education, health care, social protection, the population's employment, and physical culture and sports. Autonomous institution is a legal entity and as such can acquire and exercise property and personal non-property rights, incur obligations, and become plaintiff or defendant in the court of law. What were the 2007 novelties in this respect?
First, it is worth noting that, in compliance with p. 2 art. 3 of the Act, the autonomous institution may not, without its founder's consent, control immovable property or especially valuable movable property assigned to it by the founder or purchased by the autonomous institution at the expense of funds the founder allocated to it to purchase such property. As for other property, including immovable property, the autonomous institution holds the right for an independent control of that. The RF Government adopted Resolution of 31 May 2007 No. 337 "On procedures of identification of kinds of particularly valuable movable property of an autonomous institution". The document reads that kinds of particularly valuable movable property of federal autonomous institutions are identified using a number of criteria (as per p. 2 of the Resolution) by the joint ruling of the respective federal body of executive power that exercises functions on legal regulation in the areas of science, education, health care, social protection, employment of the population, physical culture and sports and the fed-
24
eral body of executive power mandated to manage the federal property24. Specifically, while identifying kinds of particularly valuable movable property of the federal autonomous institutions, the following property is due to be included in its composition:
- movable property whose balance-sheet value is in excess of Rb. 50,000;
- other movable property whose balance-sheet value accounts for less than Rb. 50,000, but without which the federal autonomous institution would find it substantially hard to exercise its profile activity;
- as well as the property, alienation of which is carried out following a special procedure set by law and other legal acts of the Russian Federation, including museum collections and items owned by the Federation and included in the contingent of the state-owned part of the Museum Fund of the Russian Federation, library funds attributed, in a due order, to
23 A joint founding of autonomous institutions (particularly by different government or local self-governance agencies) is not allowed by the law.
24 Procedures of identification of kinds of particularly valuable movable property of autonomous institutions established on the basis of property owned by an RF Subject and on the basis of property owned by a municipality are set, accordingly, by the supreme executive body of the state power of the RF Subject or a local self-governance body with account of requirements of the Resolution in the part of identification of kinds of particularly valuable movable property of the federal autonomous institutions.
monuments of culture and arts, and documents of the Archive Fund of the Russian Federation.
Meanwhile, it is noted that property, which is not designated for exercise by the federal autonomous institution of its principal activity, as well as property the federal autonomous institution purchased at the expense of gains from its operations as per its Charter may not be attributed to the particularly valuable movable property. The federal bodies of executive power that exercise functions and powers of the founder of a federal autonomous institution make decision on attribution of the federal autonomous institutions' property to the category of the particularly valuable movable property (or on exclusion of such property from the category of the particularly valuable movable property) basing on the list of certain kinds of particularly valuable movable property as agreed upon with the federal body of executive power commissioned to manage the federal property.
In the autumn 2007, the RF Government adopted new documents associated with the autonomous institutions' operations: the Statute on exercise by the federal bodies of executive power of functions and powers of the founder of the federal autonomous institution (of October 10, 2007, No. 662) and Regulations of publicizing reports of autonomous institutions' performance and on their usage of the property fixed with them (of October 18, 2007, No. 684). Let us briefly consider these documents.
The Statute on exercise by the federal bodies of executive power of functions and powers of the founder of the federal autonomous institution regulates procedures of exercise by the federal bodies of executive power of functions and powers of the founder of a federal autonomous institution established following the RF Government's decision on the basis of the property owned by the Federation. Specifically, if not stated otherwise by federal law or other legal acts, the federal body of executive power that exercises functions and powers of the founder of the federal autonomous institution:
- approves, as agreed upon with the federal body of executive power mandated to manage the federal property, the federal autonomous institution's Charter and amendments to it;
- assigns tasks to the federal autonomous institution according to its profile activity, as per its Charter;
- considers proposals by the federal autonomous institution head on creation or liquidation of the federal autonomous institution's subsidiaries, opening or closure of its representative offices;
- submits for the Supervisory Council's consideration various proposals by the federal autonomous institutions (on introducing amendments to the federal autonomous institution's Charter, on creation or liquidation of the federal autonomous institution's subsidiaries, on its reorganization or liquidation, on withdrawal of property fixed with the federal autonomous institution on the basis of the right for operative management);
- makes decisions, on the basis of the list of kinds of the federal autonomous institution's particularly valuable movable property, as agreed upon with the federal body of executive power mandated to manage the federal property, on attribution of the federal autonomous institution's property to the particularly valuable one and on withdrawal of property of objects fixed with the federal autonomous institution which discontinue to fall under kinds of particularly valuable movable property;
- grants its consent, as agreed upon with the federal body of executive power mandated to manage the federal property, to the federal autonomous institution to its management of
immovable property fixed with it by the founder or purchased at the expense of funds the founder has allocated for this purpose;
- grants its consent to the contribution by the federal autonomous institution with cash and other property to the authorized (joint-stock) capital of other legal entities or its otherwise property transfer to other legal entities, while acting in the capacity of their founder or participant (in the part of contribution with immovable property - as agreed upon with the federal body of executive power mandated to manage the federal property);
- and solve other numerous matters, as per the Federal Act "On autonomous institutions".
The federal body of executive power that exercises functions and powers of the founder of the federal autonomous institution notifies the federal autonomous institution of its decisions in writing within 7 days upon the date of their adoption.
As concerns the Procedures of publication of the autonomous institution's performance reports, it should be noted that reports on the autonomous institution's performance and use of the property fixed with it are due to be published in the media identified by the autonomous institution's founder and available for consumers of the autonomous institution's services not later than on June 1 of the year that follows the reporting one. There has been set the list of data which should be included in the noted reports, such as, in particular:
- information of completion of the founder's task;
- information of carrying out activities associated with completion of works and services according to obligations before the insurer by the compulsory social insurance;
- the overall number of consumers that consumed the autonomous institution's services (works), including the number of consumers that used free, partly remunerated and completely remunerated for them services (works), with a breakdown by kinds of services (works);
- the average cost for consumers of receipt of partly remunerated and completely remunerated services (works), with a breakdown by kinds of services (works);
- the average annual number of the autonomous institution's employees;
- the average labor compensation payable to the autonomous institution's employees;
- the volume of the funding of a task by the founder;
- the volume of the funding of operations associated with completion of works or delivery of services according to obligations before the insurer by the compulsory social insurance;
- the overall amount of the autonomous institution's post-tax profits in the reporting period generated by the provision by the autonomous institution of partly remunerated and completely remunerated services (works);
- the list of kinds of operations by the autonomous institution;
- the list of permits (along with specification of their numbers, date of issuance and term of validity), on the basis of which the autonomous institution carries out its operations;
- the composition of the Supervisory Board (along with positions held, names and patronymics).
The report on the use of the property fixed with the autonomous institution should comprise the following data:
- the overall balance-sheet value of the autonomous institution's property, including the balance-sheet value of the property fixed with the autonomous institution with specifica-
tion of the value of immovable property, as of the beginning and the end of the reporting period;
- the number of the immovable property objects fixed with the autonomous institution (buildings, structures, facilities), as of the beginning and the end of the reporting period;
- the overall area of the immovable property objects fixed with the autonomous institution, as of the beginning and the end of the reporting period, including the area of leased immovable property, as of the beginning and the end of the reporting period.
The noted reports may also comprise other data, which do not constitute compulsory
ones.
