RussiaAccounting and Audit
(Tax News Reporter - Week ended 6 August 1996)
In-kind contributions to the charter capital of a joint stock company with foreign investment or to the capital of a full partnership with foreign investment can now only qualify for customs duty exemption if the imported items are fixed assets to be used for production purposes. If assets contributed to the charter capital are subsequently sold, the full amount of customs duties must be paid. It is expected that the State Customs Committee will soon issue regulations to implement this. It is also proposed to prepare an amendment to the VAT law to restrict the VAT exemption to fixed assets used in production. This would reduce the possibility of importing non-production free from customs duties and VAT.
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