29.06.2005 - New Law No 58-FZ dated 6 June 2005 (effective from 1 January 2006) ?On Amendments to Part II of the Tax Code and a Number of Laws on Taxes and Levies? mostly touched upon Chapter 25 ?Corporate Income Tax? of the Russian Tax Code.
The main changes to this Chapter are as follows:
Article | Amendment | Effective Date |
248 | Documents confirming taxable income are not limited to so called basic supporting documents in a forms prescribed by the legislation. | 01.01.06 |
251 | Inseparable capital improvements or additions of leased property made by the lessee, are depreciated by either the lessor, if the lessor compensated the expenses to the lessee or, otherwise, by the lessee during the lease term. | 01.01.06 |
252 | Expense confirmation documents include documents usually used in the country where expenses have been made and also documents indirectly confirming the expenses. | 01.01.06 |
252 | List of expenses made upon restructuring is determined. Newly created and restructured organizations may account as expenses the value of property, property rights and liabilities acquired upon restructuring. | Retroactive from 01.01.05 |
254 | Definition of the technological losses upon production and transportation is provided. | 01.01.06 |
254 | Before new norms of natural wastage are introduced, the norms formally established by the Government are applied. | Retroactive from 01.01.05 |
255 | Expenses on corporate style clothes are expensed. | 01.01.06 |
259 | Methods and procedure for depreciation of capital improvements of leased income are introduced | 01.01.06 |
259 | Depreciation terms for assets contributed to charter capital are to be reduced by the terms for which the former owner depreciated the asset. | Retroactive from 01.01.05 |
264 | Expenses on Security are deductible. | Retroactive from 01.01.05 |
265 | Discounts and premiums stimulating purchasers are included into deductible expenses. | 01.01.06 |
268 | Governs also income from sale property rights. | Retroactive from 01.01.05 |
272 | Expenses on acquisition of leased property are deductible in proportion to and in the periods of lease income receipt. | 01.01.06 |
273 | The participants of trusteeship and general partnership agreements have to apply accrual method of tax accounting starting from the year of signing such agreements. | 01.01.06 |
283 | Limitation for the term of loss carryforward is abolished. | Starting from 01.01.06 neither part of carryforwarded loss can not be more than 50%. |
288 | Taxpayers having subdivisions in one Russian region may not segregate taxable income to each of them. Total tax for all such subdivisions is paid by any of the subdivisions upon the taxpayer?s discretion. | 01.01.06 |
318 | Taxpayers determine expenses attributed to direct discretionally in the Accounting Policy. Pension Insurance contributions may be direct expenses. Service companies may deduct direct expenses in full without consideration for ?uncompleted production?. | Retroactive from 01.01.05 |
319 | Taxpayers discretionally determine direct expenses attributable to ?uncompleted production? in the Accounting Policy. | Retroactive from 01.01.05 |
320 | Method of accounting for Cost of Goods is discretionally determined by the taxpayer in its Accounting Policy and is to be applied for at least two years. | Retroactive from 01.01.05 |