Tax Alert 3/96 - 15 April 1996

NEW VAT LAW

In this tax alert we look at the amendments to the VAT Law which were officially published in the Rossijskaja Gazeta of 9 April 1996. We can send you, on request, an unofficial English translation of the law.

The Law enters into force from the day of its official publication and is to be applied to "relations, which have commenced since 1 January 1996". This may be understood to mean that the new law does not apply to amounts already outstanding before 1 January 1996 but which will be received after the new law has entered into force. However, we hope that this and other transitional matters will be clarified soon by the tax authorities.

EXEMPTIONS

New exemptions include in-kind contributions to the charter capital of enterprises with foreign investment and construction of living space that is at least 40% financed from the state budget.