Tax News Reporter - 6 September

Moscow Tax / Road Fund Taxes

The Moscow Duma has exercised its right to increase the level of taxes payable to the Road Fund. From 1 July 1995, the local turnover tax on Road Users has increased to 1.5% of sales (0.11% of turnover for wholesale and retail trading companies). The tax on owners of motor vehicles (applicable to both legal entities and individuals) has also been increased, although still relatively low (for example Rbl 1300 per horsepower for cars).

(Moscow Law of 31 May 1995 No 12)

Tax Reporting

The Ministry of Finance is introducing a new reporting form which will need to be submitted to the tax authorities by all Russian legal entities as part of the tax return. The form contains information on the company's cash flow for the reporting period, and the first will be due for submission in October 1995 in respect of the first nine months of 1995. Insurance companies, banks and state financed institutions are excluded from the reporting requirement.