WITHHOLDING INCOME TAX AND VAT / POSITION OF THE MOSCOW TAXINSPECTORATE
Income received by foreign legal entities from Russian companies is subject to income withholding tax unless the Russian party is provided either with a "notification on the sources of income in Russia" or a withholding tax exemption form approved by the appropriate foreign and Russian tax authorities. Both of the forms are Appendixes to Instruction No 34 "On taxation of profits and income of foreign legal entities" as amended. Moscow State Tax Inspectorate also suggests that this process be used for exemption from VAT withholding requirements.
Letter of the Moscow State Tax Inspectorate of 5 June 1996 No. 11-13/11769
LAW "ON THE STATE TAX SERVICE" / FAVOURABLE AMENDMENTS
The tax authorities will no longer be required to perform a tax inspection once every two years if they have no doubt about the position of a particular taxpayer. Certain requirements are specified for the tax authorities to make an exception to the two year rule.
Law of the Russian Federation of 13 June 1996 No 67 - FZ
MASS MEDIA / PROFIT TAX AND VAT EXEMPTIONS
A further clarification has been issued by the State Tax Service in respect of the applicability of exemptions for profit tax and VAT previously granted to mass media and book publishing enterprises.
Letter of the State Tax Service of 7 June 1996 No PV-6-03-393
JOINT-STOCK COMPANIES / PROLONGATION OF THE PERIOD TO CHANGE CHARTER DOCUMENTS
The new Law "On amendments to the Joint-Stock companies law" was published on 21 June granting the extension of time to file amendments to pre-law charters until 1 July 1997. Failure to make the amendments before the newly established date will result in charter documents being regarded as invalid.
Law of the Russian Federation of 13 June 1996 No 65-FZ
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'.
Income received by foreign legal entities from Russian companies is subject to income withholding tax unless the Russian party is provided either with a "notification on the sources of income in Russia" or a withholding tax exemption form approved by the appropriate foreign and Russian tax authorities. Both of the forms are Appendixes to Instruction No 34 "On taxation of profits and income of foreign legal entities" as amended. Moscow State Tax Inspectorate also suggests that this process be used for exemption from VAT withholding requirements.
Letter of the Moscow State Tax Inspectorate of 5 June 1996 No. 11-13/11769
LAW "ON THE STATE TAX SERVICE" / FAVOURABLE AMENDMENTS
The tax authorities will no longer be required to perform a tax inspection once every two years if they have no doubt about the position of a particular taxpayer. Certain requirements are specified for the tax authorities to make an exception to the two year rule.
Law of the Russian Federation of 13 June 1996 No 67 - FZ
MASS MEDIA / PROFIT TAX AND VAT EXEMPTIONS
A further clarification has been issued by the State Tax Service in respect of the applicability of exemptions for profit tax and VAT previously granted to mass media and book publishing enterprises.
Letter of the State Tax Service of 7 June 1996 No PV-6-03-393
JOINT-STOCK COMPANIES / PROLONGATION OF THE PERIOD TO CHANGE CHARTER DOCUMENTS
The new Law "On amendments to the Joint-Stock companies law" was published on 21 June granting the extension of time to file amendments to pre-law charters until 1 July 1997. Failure to make the amendments before the newly established date will result in charter documents being regarded as invalid.
Law of the Russian Federation of 13 June 1996 No 65-FZ
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'.
