VAT / IMPORT OF COTTON
As of 24 May 1996, cotton imported into the Russian Federation from outside the CIS will no longer be subject to import VAT.
Federal Law of 22 May 1996 No. 45-FZ
TAX ON SECURITIES TRANSACTIONS / CHARTER CAPITAL INCREASE
It has been confirmed that, when increasing the charter capital of a joint stock company by means of increase of the nominal value of shares, the 0.8% tax on security transactions is payable on the difference between the old and the new total nominal share values.
Letter of the Federal Securities Commission No. DV-2040, State Tax Service No. 05-02-03 and Ministry of Finance No. 04-07-06 of 12 April 1996
PROFITS TAX / CURRENCY TRANSACTIONS
It has been reported that the State Tax Service is considering amending a recent letter on the taxation of currency transactions (see Tax News Reporter of 15 May 1996), following pressure from the bank lobby. According to this letter, losses incurred in trading foreign currency at rates different from the Central Bank rate are no longer tax-deductible, whilst profits remain taxable. The letter also instructs tax inspectorates to recalculate profits tax on this basis for 1994 and 1995. The contents of the proposed amendment are not yet known.
CURRENCY REGULATION / "I"- ACCOUNTS
At a recent seminar, the head of the State Tax Service announced that various changes are being considered in relation to the currency accounts used by non-residents. In particular, a less onerous regime is being considered for non-residents undertaking limited transactions through "I" accounts, whilst the tax regime for non-residents actively trading through "I" accounts may be considerably tightened.
Legal developments are usually 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 contact Stewart Naunton on Tel: +7 503 232 5511 or Fax: +7 503 232 5522 or enter a text search 'Coopers & Lybrand' and 'Business Monitor'.
As of 24 May 1996, cotton imported into the Russian Federation from outside the CIS will no longer be subject to import VAT.
Federal Law of 22 May 1996 No. 45-FZ
TAX ON SECURITIES TRANSACTIONS / CHARTER CAPITAL INCREASE
It has been confirmed that, when increasing the charter capital of a joint stock company by means of increase of the nominal value of shares, the 0.8% tax on security transactions is payable on the difference between the old and the new total nominal share values.
Letter of the Federal Securities Commission No. DV-2040, State Tax Service No. 05-02-03 and Ministry of Finance No. 04-07-06 of 12 April 1996
PROFITS TAX / CURRENCY TRANSACTIONS
It has been reported that the State Tax Service is considering amending a recent letter on the taxation of currency transactions (see Tax News Reporter of 15 May 1996), following pressure from the bank lobby. According to this letter, losses incurred in trading foreign currency at rates different from the Central Bank rate are no longer tax-deductible, whilst profits remain taxable. The letter also instructs tax inspectorates to recalculate profits tax on this basis for 1994 and 1995. The contents of the proposed amendment are not yet known.
CURRENCY REGULATION / "I"- ACCOUNTS
At a recent seminar, the head of the State Tax Service announced that various changes are being considered in relation to the currency accounts used by non-residents. In particular, a less onerous regime is being considered for non-residents undertaking limited transactions through "I" accounts, whilst the tax regime for non-residents actively trading through "I" accounts may be considerably tightened.
Legal developments are usually 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 contact Stewart Naunton on Tel: +7 503 232 5511 or Fax: +7 503 232 5522 or enter a text search 'Coopers & Lybrand' and 'Business Monitor'.
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