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Tax Code Of The Russian Federation

PART TWO NO. 117-FZ OF AUGUST 5, 2000
(with the Amendments and Additions of March 30, July 9, 1999, January 2, 2000, December 29, 2000, May 30, August 6, 7, 8, November
27, 29, December 28, 29, 30, 31, 2001, May 29, July 24, 25, December
24, 27, 31, 2002, May 6, 22, 28, June 6, 23, 30, July 7, November 11, December 8, 23, 2003)
Adopted by the State Duma on July 19, 2000
Approved by the Federation Council on July 26, 2000

Part II
Section 8
Chapter 21
Value-Added Tax
Chapter 22
Excise Taxes
Chapter 23
Personal Income Tax
Chapter 24
Uniform Social Tax (the Contribution)
Chapter 25
Tax on Organisations' Profit
Chapter 25.1
Fees for the Use of Fauna Objects and for the Use of AquaticBiological Resource Objects
Chapter 26
The Mineral Resource Recovery Tax

Chapter 23. Personal Income Tax


Article 207. Taxpayers


 Taxpayers of the personal income tax (hereinafter in the present Chapter referred to as the tax) shall be defined as natural persons being tax residents of the Russian Federation and also natural persons receiving incomes from sources in the Russian Federation who are not tax residents of the Russian Federation.

Article 208. Incomes From Sources in the Russian Federation and Incomes from Sources Outside the Russian Federation


 1. For the purposes of the present Chapter, the following shall be referred to as incomes from sources in the Russian Federation:
  1)  the dividends and interest received from a Russian organisation, as well as interest received from Russian individual businessmen and (or) from a foreign organisation in connection with the activity of its permanent representation in the Russian Federation;
  2)  insurance disbursements, given the onset of an insured accident, received from a Russian organisation and/or from a foreign organisation in connection with the activities of its permanent establishment in the Russian Federation;
  3)  incomes received from the use of copyright and other adjacent rights in the Russian Federation;
  4)  incomes received from the lease or another use of an asset located in the Russian Federation;";
  5)  incomes from the sale of:
 real estate located in the Russian Federation;
 in the Russian Federation, shares or other securities and also shares in the charter capital of organizations;
 rights of claim to a Russian or foreign organization in connection with activity of its permanent agency on the territory of the Russian Federation;
 other property located in the Russian Federation and owned by the natural person;
  6)  compensation for the performance of labour or other duties, performed work, rendered services, performance of action in the Russian Federation. In so doing, the compensation to directors and other similar disbursements received by members of a body of management of an organization (of board of directors or another similar body) - of the tax resident of the Russian Federation whose location (seat of management) is the Russian Federation shall be regarded as incomes received from sources in the Russian Federation irrespective of the place where the managerial duties conferred to such persons were actually performed or whence the disbursements of said compensations were effected;
  7)  pensions, allowances, grants and other similar disbursements received by taxpayers according to the effective Russian legislation or received from a foreign organisation in connection with activity of its permanent agency in the Russian Federation;
  8)  incomes received from the use of any vehicles including sea, river, air vehicles and motor road vehicles in connection with carriage to the Russian Federation and/or out of the Russian Federation or within the boundaries thereof and also fines and other sanctions for demurrage (delay) of such vehicles at loading/unloading points in the Russian Federation;
  9)  incomes received from the use of pipelines, electrical transmission lines, optical fibre and/or wireless communication lines, other communication facilities including computer networks, on the territory of the Russian Federation;";
  10)  other incomes received by the taxpayer as a result of an activity he performed in the Russian Federation.
 2. For the purposes of the present Chapter, incomes of a natural person received by him as a result of conducting foreign trade operations (including commodity exchange) performed solely on behalf of and in the interests of this natural person and connected solely with the purchasing (acquiring) of goods (performance of works, rendering of services) in the Russian Federation and also with the import of goods in the Russian Federation shall not be referred to incomes received from sources in the Russian Federation.
 This provision shall apply to operations involving the import of goods to the territory of the Russian Federation under the customs treatment of release for free circulation only if the following conditions are met:
  1)  the delivery of goods is performed by a natural person not from places of storage (including bonded warehouses) located on the territory the Russian Federation;
  2)  the operations are not covered by provisions of Item 3 of Article 40 of the present Code;
  3)  the goods are not sold through a permanent agency in the Russian Federation.
 If any one of said conditions is not met, the part of received incomes referred to as activity of the natural person in the Russian Federation shall be regarded an income received from sources in the Russian Federation in connection with the sale of the goods.
 In case of subsequent sale of goods acquired by the natural person through foreign trade operations defined by the present Item, to incomes of such natural person received from sources in the Russian Federation shall be referred any incomes from any sale of these goods, including their resale or pledge from warehouses or other places of location and storage of such goods which are situated on the territory of the Russian Federation, owned by this natural person, leased or used by him, except for their sale outside the Russian Federation from bonded warehouses.
 3. For the purposes of the present Chapter, to the incomes received from sources outside the Russian Federation shall be referred:
  1)  the dividends and interest received from a foreign organisation, with the exception of interest envisaged by Subitem 1 of Item 1 of the present Article;
  2)  insurance disbursements in the case of onset of an insured accident, received from a foreign organisation, save the insurance disbursements specified in Subitem 2 Item 1 of the present article;
  3)  incomes from the use of copyright and other adjacent rights outside of the Russian Federation;
  4)  incomes received from the lease or another use of an asset located outside of the Russian Federation;";
  5)  incomes from sales of:
  -  real estate located outside the Russian Federation;
  -  shares outside the Russian Federation and other securities and also shares in the authorised capitals of foreign organisations;
  -  rights of claim to a foreign organization except for rights of claim specified in paragraph four of Subitem 5 of Item 1 of the present Article;
  -  other property situated outside the Russian Federation;
  6)  compensation for the performance of labour or other duties, performed work, rendered services, or performance of action outside the Russian Federation. Here, compensation to directors and other similar disbursements received by members of a body of management of a foreign organization (of a board of directors or another similar body) - of the tax resident of the Russian Federation whose location (seat of management) is the Russian Federation shall be regarded as incomes received from sources located outside the Russian Federation irrespective of the place where the managerial duties conferred to such persons were actually performed;
  7)  pensions, allowances, grants and other similar disbursements received by the taxpayer in accordance with the legislation of foreign states;
  8)  incomes received from the use of any vehicles including sea, river, air vehicles and motor road vehicles and also fines and other sanction for the demurrage (delay) of such vehicles at loading/unloading points, save those specified in Subitem 8 Item 1 of the present article;
  9)  other incomes received by the taxpayer as a result of an activity he performed outside the Russian Federation.
 4. If provisions of the present Code do not allow to attribute unequivocally the incomes received by the taxpayer either to incomes received from sources in the Russian Federation or to incomes from sources outside the Russian Federation, the Ministry of Finance of the Russian Federation shall make the attribution. Similarly shall be defined the share of said incomes which can be referred to incomes from sources in the Russian Federation and the share which can be referred to incomes from sources outside the Russian Federation.
 5. For the purposes of the present chapter the term "incomes" shall not include incomes from transactions relating to property and non- property relationships of natural persons recognised as family members and/or close relatives under the Family Code of the Russian Federation, except incomes received by the said natural persons as a result of their concluding between themselves agreements of civil legal nature or labour agreements.

Article 209. The Item of Taxation


 The item of taxation shall be defined as an income received by taxpayers:
  1)  from sources in the Russian Federation and/or from sources outside the Russian Federation - for natural persons who are tax residents of the Russian Federation;
  2)  from sources in the Russian Federation - for natural persons who are not tax residents of the Russian Federation.

Article 210. The Tax Base


 1. When determining the tax base taken into account shall be all incomes the taxpayer has received both in cash and in kind or the right to dispose of which he has acquired, and also incomes in the form of material benefit defined according to Article 212 of the present Code.
 If any deductions are made from the taxpayer's income by his order or by a court ruling or decisions of other bodies, such deductions shall not reduce the tax base.
 2. Tax base shall be defined separately for each type of income concerning which various tax rates are established.
 3. For incomes concerning which the tax rate established by Item 1 of Article 224 of the present Code is stipulated, the tax base shall be defined as the pecuniary form of such taxable incomes reduced by the tax deductions stipulated by Articles 218-221 of the present Code with allowance for features established by the present Chapter.
 If the amount of tax deductions in a tax period will exceed the amount of taxable incomes covered by the tax rate established by Item 1 of Article 224 of the present Code, over the same tax period the tax base shall be defined as having zero value. The difference between the amount of tax deductions in this tax period and the amount of taxable incomes concerning which the tax rate established by Item 1 of Article 224 of the present Code is stipulated, shall not be rolled over into the following tax period, unless otherwise is stipulated by the present Chapter.
 4. For incomes concerning which other tax rates are established, the tax base shall be defined as a pecuniary form of taxable incomes. Thus, the tax deductions stipulated by Articles 218-221 of the present Code, shall not apply.
 5. Incomes (expenses accepted for deduction according to Articles 218-221 of the present Code) of the taxpayer expressed (nominated) in foreign currency are converted into roubles at the rate of the Central Bank of the Russian Federation established on the date of actual receipt of the incomes (on the date of the actually incurred expenses).

Article 211. Features of the Determination of the Tax Base When Receiving Incomes in Kind


 1. If the taxpayer receives an income from organizations and individual entrepreneurs in kind in the form of goods (works, services) and other property, the tax base shall be defined as the cost of these goods (works, services) other property calculated on the basis of their prices defined in accordance with the procedure described in Article 40 of the present Code.
 Thus, the cost of such goods (works, services) shall include corresponding amount of the value added tax and excise tax.
 2. Incomes received by the taxpayer in kind, in particular shall include:
  1)  payment (full or partial) made for him by organizations or individual entrepreneurs in goods (works, services) or property rights, including municipal services, meals, rest, and training in the interests of the taxpayer;
  2)  goods received by taxpayers, works performed in the interests of the taxpayer, and services rendered in the interests of the taxpayer on a gratuitous basis;
  3)  wages in kind.

Article 212. Features of the Determination of the Tax Base When Receiving Incomes in the Form of Material Benefit


 1. Incomes of the taxpayer received in the form of material benefit shall be:
  1)  material benefit received from economic gain on the interest for use by the taxpayer of borrowed (credit) funds, received from organisations or individual entrepreneurs;
  2)  material benefit received from the purchase of goods (of works, services) from natural persons under an agreement having civil legal nature as natural persons are concerned, organizations and individual entrepreneurs being related to the taxpayer;
  3)  material benefit received from acquiring securities.
 2. When the taxpayer receives an income in the form of material benefit specified in Subitem 1 of Item 1 of the present Article, the tax base shall be defined as:
  1)  excess of amounts of interest for the use of borrowed funds expressed in roubles calculated on the basis of three quarters of the current refinancing rate established by the Central Bank of the Russian Federation on the date of receipt of such funds over the amount of interest calculated on the basis of terms and conditions of the contract;
  2)  excess of the amount of interest for the use of borrowed funds expressed in foreign currency calculated on the basis of 9 per cent per annum, over the amount of interest calculated on the basis of terms and conditions of the contract.
 The taxpayer shall determine the tax base when receiving an income in the form of material benefit expressed as the gain on interest at the receipt of borrowed funds within the times defined by Subitem 3 of Item 1 of Article 223 of the present Code, but at least once in a tax period established by Article 216 of the present Code.
 3. When the taxpayer receives an income in the form of material benefit specified in Subitem 2 of Item 1 of the present Article, the tax base is defined as the excess of the price of the identical (homogeneous) goods (works, services) sold by persons being related to the taxpayer, under usual conditions to persons who are not related, over the prices of sale of identical (homogeneous) goods (works, services) to the taxpayer.
 4. When the taxpayer receives an income in the form of material benefit specified in Subitem 3 of Item 1 of the present Article, the tax base is defined as the excess of the market value of securities determined with the account taken of the security market price variation limits above the amount of actual expenses of the taxpayer for their purchase.

Article 213. Features of the Determination of the Tax Base on Insurance Contracts and Non-State Pension Insurance Contracts


 1. When determining the tax base, incomes received in the form of insurance in the event of relevant insured accidents shall not be accounted:
  1)  under contracts of compulsory insurance carried out in the procedure established by effective laws;
  2)  under contracts of voluntary long-term insurance of life made for a term of at least five years which do not provide for making within these five years insurance payments, and also in the form of rent and (or) annuities (except for insurance payments made in the event of the of an insured person) in favour of an insured person.
 The amounts of insurance compensations received under voluntary life insurance contracts concluded for the terms of less than five years shall not be taken into account when determining the tax base if the amounts of such insurance compensations do not exceed the amounts contributed by natural persons in the form of the insurance premium payments marked up by the insurers by an amount computed on the basis of the current refinancing rate of the Central Bank of the Russian Federation at the time the insurance contract was made. Otherwise, the difference between the said amounts shall be taken into account when determining the tax base, and shall be taxable at the source of disbursement at the rate stipulated by Item 2 of Article 224 of the present Code.
 In case of advance avoidance of contracts of voluntary long-term life insurance before the lapse of the five year term of its operation (except for cases of advance avoidance of insurance contracts for reasons beyond the will of the parties) and refund to the natural persons of cash (redemption) amount, which according to the Rules of Insurance and terms and conditions of the contracts are refundable in case of advance avoidance of the insurance contracts, the received income minus the amount of instalments made shall be taken into account when determining the tax base of an insurant being a natural person, and shall be taxable at the source of disbursement.
  3)  under contracts providing for compensation for damage caused to life and health, as well as compensation for expenses of medical nature (safe for payment for authorization to places in sanatoriums and health resorts);
  4)  under contracts of voluntary retirement insurance made with insurance organizations, where such payments are made upon the occurrence of reasons for retirement under the laws of the Russian Federation.
 2. When determining the tax base, there shall not be taken into account the incomes gained in the form of payments under contracts of non-governmental retirement insurance made with non-governmental pension funds, where such payments are made upon the occurrence of reasons for retirement under the laws of the Russian Federation.
 In the event of advance termination of non-governmental retirement insurance contracts made with Russian non-governmental pension funds (except for the cases of advance termination of the said contracts for reasons beyond the will of the parties) and refund to the natural persons of cash (redemption) amount which according to the laws of the Russian Federation on non-governmental pension funds and according to the terms and conditions of the contracts are refundable in cases of advance termination of the insurance contracts, as well as in the event of alteration of terms and conditions of the said contracts in respect of their validity, the received income minus the amount of instalments (contributions) made by natural persons shall be taken into account when determining the tax base, and shall be taxable at the source of disbursement.
 3. When determining the tax base, insurance premiums shall be taken into account where the said amounts are paid for natural persons by employers, except for the cases when:
 insurance of natural persons is carried out by employers under contracts of compulsory insurance, as well as under contracts of voluntary insurance stipulating compensation for damage caused to the life and health of insured natural persons or for medical expenses of insured natural persons;
 employers make contracts of voluntary retirement insurance (contracts of non-governmental retirement insurance) on conditions that the total amount of payments (contributions) does not exceed five thousand roubles a year per worker.
 4. Under a contract of voluntary insurance of property (including the insurance of civil liability for causing damage to the property of third persons and (or) the insurance of civil liability of transport vehicles' owners) the taxable incomes of a taxpayer upon the occurrence of an insured accident shall be determined in the event of:
  -  loss or destruction of insured property (property of third persons) as the difference between the received insurance compensation and the market value of insured property on the date of conclusion of the aforesaid contract (on the date of the insured accident - for a civil liability insurance contract) marked up by the amount of the insurance premium payments paid to insure this property;
  -  damage of insured property (property of third persons) as the difference between the received insurance compensation and expenses required for repairing (restoring) this property (if no repair has been performed), or the cost of repair (rehabilitation) of this property (if repairs have been performed) being marked up by the amount of insurance premium payments paid to insure this property.
 The feasibility of expenses required towards repairing (restoring) insured property, if no repair (restoration) has been performed, shall be confirmed by a document (cost-estimate, statement, certificate) drawn up by an insurer or independent expert (surveyor).
 The feasibility of expenses towards effected repair (rehabilitation) of insured property shall be confirmed by the following documents:
  1)  contract (copy of the contract) on the performance of appropriate works (on rendering services);
  2)  documents confirming acceptance of executed works (rendered services);
  3)  payment documents which were made out in due order to confirm the fact of payment for works (services).
 In so doing, not to be taken into account as income shall be the amount reimbursed to the insurant or the expenses incurred by the insurers involved in the investigation of circumstances of an insured accident, assessment of the scope of damage, legal costs, and also other expenses according to the current legislation and terms and conditions of a property insurance contract.

Article 214. Specifics in the Payment of Tax on the Profits of Natural Persons with Respect to Incomes from Share Participation in an Organisation


 The sum of tax on the incomes of natural persons (hereinafter in the present Chapter ' the tax') with respect to the incomes from the share participation in an organisation received in the form of dividends, shall be determined taking into account the following provisions:
  1)  the sum of the tax with respect to dividends received from the sources outside of the Russian Federation, shall be defined by the tax payer on his own as concerns every amount of received dividends, in accordance with the rate envisaged by Item 4 of Article 224 of this Code. "The taxpayers receiving dividends from sources outside of the Russian Federation shall in this case have the right to reduce the sum of the tax calculated in conformity with the present Chapter, by the sum of the tax calculated and paid at the place of location of the source of the income, only in cases when the source of the income is situated in a foreign state, with which a contract (agreement) is signed on avoiding double taxation.
 If the sum of the tax paid up at the place of location of the source of the income exceeds the sum of the tax calculated in conformity with the present Chapter, the resulting difference shall not be subject to return from the budget;
  2)  if the source of the taxpayer's income received in the form of dividends is a Russian organisation, the said organisation shall be recognised as a tax agent and shall determine the sum of the tax separately for every taxpayer as concerns every payment of the said incomes in accordance with the rate envisaged by Item 4 of Article 224 of this Code, and with the order stipulated by Article 275 of the present Code.

Article 214.1. The Peculiarities of Determining Tax Base, Calculating and Paying the Tax on Incomes under Transactions in Securities and the Transactions in Time Deal Instruments of Which the Base Asset Is Securities


 1. When calculation is being done of the tax base of incomes under the in securities and the transactions in time deal instruments of which the base asset is securities account shall be taken of incomes received under the transactions:
 of the purchase and sale of securities traded in the organised securities market;
 of the purchase and sale of securities not traded in the organised securities market;
 in time deal instruments of which the base asset is securities;
 in securities and time deal instruments of which the base asset is securities, such transactions being accomplished by the trustee for the benefit of the founder of a trust (beneficiary) being a natural person.
 2. For each of the transactions specified in Item 1 of the present article tax base shall be determined separately with due regard to the provisions of the present article.
 For the purposes of the present article the "time deal instruments of which the base asset is securities" means futures and option market deals.
 3. Income (loss) under securities purchase/sale transactions shall be determined as the sum of incomes under the aggregate deals in securities of a certain category accomplished in the tax period, less the sum of losses.
 Income (loss) under a securities purchase/sale deal shall be determined as a difference between the sums received from the sale of the securities and the expenses towards acquiring, selling and holding in custody the securities actually incurred by the taxpayer (including the expenses reimbursed to the professional participant in the securities market) and documented.
 These expenses are as follows:
  -  amounts payable to the seller under a contract;
  -  payment for the services provided by a custodian;
  -  commission payable to professional participants in the securities market;
  -  market fee (commission);
  -  payment for the services of a registrar;
  -  other expenses directly relating to the purchase, sale and custody of securities payable for the services provided by professional participants in the securities market within the framework of their professional activity.
 If a taxpayer has acquired as ownership (including has received on a gratuitous basis or with partial payment) certain securities, then in the taxation of the income on the operations of the purchase-and-sale of the securities as documentarily confirmed expenses on the acquisition (receipt) of such securities there shall also be taken into account the amounts from which there has been calculated and paid the tax in the acquisition (receipt) of the said securities.
 Income under a deal of purchase/sale of securities traded in the organised securities market shall be reduced by the amount of interest paid for the use of the amounts of money raised to accomplish the securities purchase/sale deal within the limits calculated proceeding from the effective refinancing rate of the Central Bank of the Russian Federation.
 Loss under a deal in securities traded in the organised securities market shall be determined with due regard to the security market price variation limits.
 For the purposes of the present chapter the "securities traded in the organised securities market" means securities cleared for trading by trade organisers holding a license issued by the federal body responsible for regulating the securities market.
 Where the taxpayer's expenses towards the acquisition, sale and custody of securities cannot be referred to as "expenses towards the acquisition, sale and custody" of specific securities the said expenses shall be distributed pro rata to the value appraisal of the securities to which the said incomes are attributable. The value appraisal of the securities shall be effected as of the date when the expenses were incurred.
 If the taxpayer's expenses are not validated by a document the taxpayer shall be entitled to a tax property deduction as stipulated in Paragraph 1 Subitem 1 Item 1 Article 220 of the present Code.
 A tax property deduction or a deduction in the amount of actually incurred and documented expenses shall be granted to a taxpayer when the tax is being calculated and paid to the budget at the source of disbursement of an income (a broker, trustee or another person accomplishing transactions under an agency agreement or another agreement of similar nature for the taxpayer's benefit) or upon the expiration of the tax period when the tax return is filed with a tax body.
 If the tax is calculated and paid by the source of disbursement of an income (a broker, trustee or another person accomplishing transactions under an agency agreement or another agreement of similar nature for the taxpayer's benefit) in the tax period a tax property deduction shall be granted by the source of disbursement of the income as including a possibility of a subsequent review upon the expiration of the tax period when the tax return is filed with a tax body.
 If there are several income disbursement sources a tax property deduction shall be granted only at one of the income disbursement sources chosen at the taxpayer's discretion.
 4. The tax base relating to securities purchase/sale transactions shall be determined as the income received according to the securities transactions results of the tax period. Income (loss) under securities purchase/sale transactions shall be determined in compliance with Item 3 of the present article.
 Loss under transactions in securities traded in the organised securities market incurred according to the results of the said transactions accomplished in the tax period shall reduce the tax base of the transactions of purchase/sale of securities of a certain category.
 Income under the transactions of purchase/sale of securities which are not traded in the organised securities market and which, as of the time of purchase, met the criteria applicable to the securities traded in the organised securities market may be reduced by the sum of loss incurred in the tax period under the transactions of purchase/sale of securities traded in the organised securities market.
 5. The tax base relating to transactions in time deal instruments (except the transactions specified in Item 6 of the present article) shall be determined as a difference between the positive and negative results obtained from a re-valuation of liabilities and claims under the deals made and from the discharge of time deal instruments with the account taken of payment for the services provided by market mediators and the market in terms of opening positions and keeping the natural person's account. The tax base relating to transactions in time deal instruments shall be increased by the sum of bonuses received under option deals and reduced by the sum of bonuses paid under the said deals.
 6. As it concerns transactions in instruments of the time deals made for the purposes of minimising the risk of security price variation, the incomes from the transactions in item deal instruments (including the bonuses received under option deals) shall increase and the losses shall reduce the tax base relating to transactions in the base asset.
 The procedure for classifying deals in time deal instruments as "deals made for the purposes of minimising the risk of base asset price variation" shall be set forth by the federal executive bodies empowered to do so by the Government of the Russian Federation.
 7. The tax base relating to the transactions in securities and time deal instruments accomplished by a trustee shall be calculated in compliance with the procedure established by Items 4 - 6 of the present article with due regard to the provisions of the present item.
 The taxpayer's incomes shall also include the amounts paid by the founder of a trust (beneficiary) to the trustee in the form of a fee and compensation for the expenses incurred by him under accomplished transactions in securities and transactions in time deal instruments.
 When calculation is effected of the tax base relating to incomes under the transactions in securities and transactions in time deal instruments accomplished by a trustee for the benefit of a founder (beneficiary) of the trust the said income shall be determined for a beneficiary not being a founder of the trust with due regard to the provisions of the trust agreement.
 When, in the case of trust management, deals are made in securities of various categories and also if other types of income occur in the course of trust management (including, in particular, incomes under transactions in time deal instruments, incomes in the form of dividends, interest) the tax base shall be determined separately for each category of securities and for each type of income. In such a case the incomes that cannot be directly referred to income reduction under deals in the securities of a certain category or to the reduction in a certain type of income shall be distributed pro rata to the share of each type of income (income received under transactions in the securities of a relevant category).
 The loss incurred under transactions in securities accomplished by a trustee for the benefit of the founder (beneficiary) of the trust in the tax period shall reduce the incomes under the said transactions.
 The loss incurred under transactions in securities and transactions in time deal instruments accomplished by a trustee for the benefit of the founder (beneficiary) of the trust shall reduce the incomes received under transactions in the securities of a relevant category and transactions in time deal instruments and the incomes received under the said transactions shall increase the incomes (reduce the losses) under transactions in the securities of a relevant category and transactions in time deal instruments.
 The loss incurred under transactions in securities and transactions in time deal instruments accomplished by a trustee for the benefit of the founder (beneficiary) of the trust accomplished in the tax period shall reduce the tax base relating to transactions in the securities of a relevant category and transactions in time deal instruments respectively.
 8. The tax base relating to the transactions of purchase/sale of securities and transactions in time deal instruments shall be calculated upon the expiration of the tax period. Tax calculation and payment shall be effected by the tax agent upon the expiration of the tax period or when the agent disburses amounts of money for the benefit of the taxpayer before the expiration of next tax period.
 When amounts of money are disbursed by the tax agent before the expiration of next tax period the tax shall be paid on the share of income determined in compliance with the present article as corresponding to the actual amount of money disbursed. The share of income shall be determined as the sum total of income times the ratio of disbursement amount to securities value appraisal determined as of the date of the disbursement of the monies in respect of which the tax agent acts as a broker. When amounts of money are disbursed for the benefit of the taxpayer more than once in the tax period the tax amount shall be accrued and be cumulative, with the tax amounts paid earlier being taken into account.
 The value appraisal of securities shall be effected proceeding from the actual expenses incurred to acquire them if these expenses are documented.
 As it concerns the incomes under transactions in securities and transactions in time deal instruments accomplished by a trustee for the benefit of the founder (beneficiary) of the trust, the trustee shall be deemed a tax agent, such a trustee determining the tax base under the said transactions with due regard to the provisions of the present article.
 The tax base relating to transactions in securities accomplished by a trustee for the benefit of the founder (beneficiary) of the trust shall be determined as of the date of end of the tax period or as of the date of disbursement of amounts of money (transfer of securities) before the expiration of next tax period. The tax shall be payable within one month after the date of end of the tax period or the date of disbursement of amounts of money (transfer of securities).
 When disbursements are effected in monetary form or in kind out of the resources held on trust, before the expiration of the effective term of the trust agreement or before the expiration of the tax period the tax shall be paid on the share of income determined in compliance with Item 7 of the present article corresponding to the actual amount of money disbursed for the benefit of the founder (beneficiary) of the trust. In such a case the share of income shall be determined as the sum total of income times the ratio of the amount of disbursement to the appraisal of the securities (monies) held on trust determined as of the date of disbursement of amounts of money. When disbursement is effected in monetary form or in kind out of the resources held on trust, more than once in the tax period the said calculation shall be effected as accrual and be cumulative, with the account being taken of the tax amounts paid earlier.
 For the purposes of the present item the "disbursement of amounts of money" means disbursement in cash, the remittance of amounts of money to a person's bank account or to a third person's bank account on the request of a natural person.
 If its is impossible to withhold from a taxpayer a tax amount calculated by the source of disbursement the tax agent (broker, trustee or another person accomplishing transactions under an agency, commission agreement or another agreement for the taxpayer's benefit) shall notify the tax body at the place of its registration within one month after the occurrence of this circumstance about the impossibility of such a withholding and of the amount of money owed by the taxpayer. In this case the tax shall be paid in compliance with Article 228 of the present Code.

Article 215. Features of the Determination of Incomes of Specific Categories of Foreign Citizens


 1. The following incomes shall not be taxable:
  1)  of heads and also staff of missions of a foreign state having a diplomatic or consular rank, members of their families staying with them if they are not citizens of the Russian Federation, except for the incomes from sources in the Russian Federation which are not connected to the diplomatic or consular service of these natural persons;
  2)  of the administrative-clerical staff of missions of a foreign state and members of their families staying with them, if they are not citizens of the Russian Federation or do not live in Russian Federation permanently, except for the incomes from sources in the Russian Federation which are not connected to the said individuals' employment with these missions;
  3)  of supporting personnel of the missions of a foreign state who are not citizens of the Russian Federation or do not live in the Russian Federation permanently which they receive when in their line of duty in the mission of a foreign state;
  4)  employees of international organizations - according to the charters of these organizations.
 2. Provisions of the present Article shall apply in cases when legislation of a corresponding foreign state had established a similar order concerning persons listed in Subitems 1-3 of Item 1 of the present Article, or if such norm is stipulated by an international treaty (agreement) of the Russian Federation. The list of foreign states and international organizations concerning whose citizens (employees) the standards of the present Article shall be applied is defined by a federal body of the executive power regulating relations of the Russian Federation with foreign states (international organizations) together with the Ministry of Taxation of the Russian Federation.

Article 216. The Tax Period


 The tax period shall be defined as a calendar year.

Article 217. Non-Taxable Incomes (Exempt from Taxation)


 The following types of personal incomes shall be exempt from taxation (not subject to taxation):
  1)  state allowances, excluding temporary disability allowance, (including the allowance for care of a sick child) as well as other disbursements and compensations paid according to the effective legislation. Here, tax exempt allowances include unemployment benefit, and maternity and birth of a child allowance;
  2)  the state pensions awarded in the order, established by the current legislation;
  3)  all types of compensatory disbursements established by the legislation of the Russian Federation, legislative acts of constituent entities of the Russian Federation, decisions of representative bodies of local self-government (within the limits of standards established according to the legislation of the Russian Federation) and involving:
  -  reimbursement of harm caused by mutilation or other damage to health;
  -  free granting of housing and utilities, fuels or a relevant pecuniary reimbursement;
  -  payment of cost and/or issue of authorized allowance in kind and also the disbursement of cash instead of such an allowance;
  -  payment of the cost of meals, sports gear, equipment, sports and dress uniform received by the sportsmen and staff of physical culture and sports organizations for training process and participation in sport competitions;
  -  dismissal of workers, including compensations for unused holiday;
  -  loss of life of military servicemen or government officials in the line of their official duties;
  -  reimbursement of other expenses, including the expenses involved in the improvement of professional skills of workers;
  -  performance by the taxpayer of his job duties (including relocation to work to another locality and reimbursement of travel and living expenses).
 In case the employer pays the expenses of business trips of workers both in the country and abroad, the daily allowance exempt from taxation shall be within the limits of standards established according to the legislation of the Russian Federation, and also the actually effected and documented target expenses in the travel up to destination and back, charges for airport services, commission charges, expenses in travel to the airport or terminal in the places of departure, destination or changes, on conveyance, expenses in hiring housing, communication services expenses, charges for the receipt and registration of a service foreign passport, charges for granting visas, and also expenses in exchange of currency cash or cheques in a bank into foreign currency in cash. If no documents are presented to confirm the payment of expenses for hiring of housing, the amounts of such payment can be exempted from taxation within the limits of standards established by the legislation of the Russian Federation. A similar order of taxation shall apply to disbursements effected to persons found in command or administrative subordination to an organization, and also members of a board of directors or any similar body of the company coming to participate in meetings of the board of directors, the management board or another similar body of such a company;
  4)  compensation to donors for donated blood, mother's milk or other donor's assistance;
  5)  alimonies received by taxpayers;
  6)  amounts received by taxpayers in the form of grants (of gratuitous help), science, granted for support, and education, culture and arts in the Russian Federation by international or foreign organizations under the list of such organizations approved by the Government of the Russian Federation;
  7)  amounts received by taxpayers in the form of international, foreign or Russian prizes for achievements in the field of science and engineering, education, culture, literature and arts under the list of prizes approved by the Government of the Russian Federation;
  8)  the amount of lump sum material assistance rendered:
  -  to taxpayers in connection with natural disaster or other emergencies in order to compensate for material loss caused to them or harm to their health on the basis of decisions of bodies of legislative (representative) and/or executive authority, representative bodies of local self-government, or foreign states or special funds created by public authorities or foreign states, and also created according to international treaties, one of which parties is the Russian Federation, governmental and non-governmental interstate organizations;
  -  by the employers to members of the family of a deceased employee or to an employee in connection with the death of a member (members) of his/her family;
  -  to the taxpayers in the form of humanitarian aid (assistance), and also in the form of charitable help (in cash and in kind) rendered by Russian and foreign charitable organizations (funds, associations) registered in due order, included in the lists approved by the Government of the Russian Federation;
  -  to low income and taxpayers and socially vulnerable categories of citizens in the form of amounts of the target oriented social assistance (in cash and in kind) rendered to the charge of funds of the federal budget, budgets of the constituent entities of the Russian Federation, local budgets and extra-budgetary funds according to programs approved annually by the appropriate public authorities;
  -  to taxpayers who suffered from terrorist acts on the territory of the Russian Federation, irrespective of source of disbursement;
  9)  amounts of full or partial compensation of cost of travel agreements, except for tourist ones paid by employers to workers and (or) members of their families, and invalids who are not working in the given organization to sanatoriums and health improvement establishments located on the territory of the Russian Federation, and also the amounts of full or partial compensation of cost of travel agreements for children who have not reached 16 years of age to sanatoriums and health improvement establishments located on the territory of the Russian Federation which are paid:
  -  to the charge of funds of employers who have stayed in their order after payment of the tax to profit of organizations;
  -  to the charge of funds of the Social Insurance Fund of the Russian Federation;
  10)  amounts paid by employers from funds they have retained after payment of the organization's profit tax for treatment and health services rendered to workers, their spouses, their parents and their children, provided the medical establishments hold the appropriate licenses, and documents are produced to confirm actual expenses in treatment and health services.
 Aforesaid incomes shall be exempted from taxation if the employers make non-cash payments to medical establishments for the treatment and health services of the taxpayers, and also if the cash for these purposes is issued directly to the taxpayer (members of his family, parents) or funds intended for such purposes are entered into accounts of the taxpayers held with bank institutions;
  11)  grants to pupils, students, post-graduate students, hospital physicians, associates or persons working for a doctor's degree of higher higher vocational training or post-college vocational training, of research establishments, of students of learning establishments of basic professional and medium vocational training, students of theological educational establishments which are paid to said persons by these establishments, grants established by the President of the Russian Federation, bodies of legislative (representative) or executive power of the Russian Federation, bodies of constituent entities of the Russian Federation, charitable funds, grants paid at the expense of budget funds to taxpayers who undergo training under a voucher issued by bodies of the employment service;
  12)  amounts of wages and other amounts in foreign currency received by taxpayers from federally funded state institutions or organizations that sent them to work abroad - within the limits of standards established by the current legislation on wages of employees;
  13)  incomes of taxpayers received from the sale of cattle, rabbits, coypu rats, birds, wild animals and birds (both live and products of their slaughter, both raw or processed) production of cattle-breeding, plant growing, flower-growing and bee-keeping, both in kind and processed which were raised on personal part-time farms, situated on the territory the Russian Federation.
 Aforesaid incomes are released from taxation provided the taxpayer submits a document issued by an appropriate body of local self-government, gardening board, gardening or vegetable gardening partnerships confirming that the sold products have been produced by the taxpayer on the land lot owned by him or members of his family used for personal part-time farming, country cottage construction, gardening and vegetable gardening;
  14)  incomes of members of a country (farmer) household received in such a household from the production and sale of agricultural products and also from the production of agricultural products, and their processing and sale - within five years after the registration year of the household.
 The present norm shall be applicable to the incomes of such members of a peasant (farmer's) farm to whom it has not been applied.
  15)  incomes of taxpayers received from the collection and selling of medicinal plants, wild berries, nuts and other fruits, mushrooms, or other wild plants to organizations and (or) individual entrepreneurs that have a permit (license) for large scale procurement (buying) of wild plants, mushrooms, technical and medicinal raw material of plant-related origin, except for the incomes received by individual entrepreneurs from resale of products listed in the present Subitem;
  16)  incomes (except for wages of hired workers) received by members registered in accordance with the established procedure patrimonial, family communities of small ethnic groups of the North from the sale of products received as a result of pursuing their traditional types of craft;
  17)  incomes of non-professional hunters received from selling to hunters' societies, organizations of consumers' cooperation or state unitary enterprises of furs they have procured, fur or hind raw materials or meat of wild animals if such animals are procured under licenses issued in the order established by the current legislation;
  18)  incomes in cash and in kind received from natural persons by way of succession or donation, except for compensation paid to heirs (assignees) of authors of works of science, literature, art, and also discoveries, inventions and industrial models;
  19)  incomes received from joint-stock companies or other organizations by shareholders of these joint-stock companies or participants of other organizations as a result of revaluation of fixed assets (funds) in the form of additional shares they have received, or other property shares distributed between shareholders or participants in an organization in proportion to their share and types of stocks, or in the form of differences between the new and initial face value of shares or their property share in the charter capital;
  20)  prizes in cash and (or) kind received by sportsmen for prize-winning places for the following sport competitions: Olympic games, championships and the world- and European cups of the official organizers or on the basis of decisions of public authorities and bodies of local self-government to the charge of funds of appropriate budgets;
 championships, competitions and cups of the Russian Federation from the official organizers;
  21)  amounts paid to organizations and (or) natural persons orphan children aged up to 24 for education at educational establishments that have the appropriate licenses or for their training/education to the said institutions;
  22)  amounts of payment for invalids by organizations or individual entrepreneurs of means of prevention of physical disability and rehabilitation of invalids, and also payment of acquiring and keeping of guide dogs of disabled persons;
  23)  compensation paid for handing treasures over to state ownership;
  24)  incomes received by individual entrepreneurs for the performance of those types of activity under which they are the payers of the single tax on imputed income for the individual kinds of activity, and also for those in whose taxation is applied the simplified taxation system and the taxation system for agricultural commodity producers (a uniform agricultural tax);
  25)  amounts of interest under state treasury obligations, bonds and other state securities of the former USSR, the Russian Federation and constituent entities of the Russian Federation, and also under bonds and securities issued by decision of representative bodies of local government;
  26)  incomes received by children - orphans and children, being members of families whose incomes per one member does not exceed the cost of living, from duly registered charitable funds and religious organizations;
  27)  the incomes in the form of interest received by taxpayers on deposits in banks located in the territory of the Russian Federation if:
 interest on rouble deposits are paid within the amounts calculated on the basis of the effective refinancing rate of the Central Bank of the Russian Federation during the period for which the said interest is accrued;
 the set rate does not exceed nine per cent per annum on foreign currency deposits;
  28)  incomes not exceeding 2,000 roubles received on any of the following grounds over a tax period:
 cost of gifts received by taxpayers from organizations or individual businessmen and not taxable on succession or gift under the current legislation;
 cost of prizes in cash and in kind received by taxpayers in competitions and contests held by decisions of the Government of the Russian Federation, legislative (representative) public authorities or representative bodies of a local self-government;
 amounts of material assistance rendered by employers to their workers and also former workers who have retired due to disability or age-related pension;
 reimbursement (payment) by employers to their workers, their spouses, parents and children, former workers (age retirees) and also invalids of the cost of drugs bought by them (for them) prescribed to them by a treating doctor.
 Exemption from taxation shall be granted upon the submission of documents confirming the actual expenses incurred towards the acquisition of these medicines;
 cost of any prizes or winnings received through competitions, games and other activities for the purposes of advertising goods (works, services);
  29)  the incomes of soldiers, sailors, sergeants and sergeant- majors drafted undergo military service and also persons drafted to undergo periodical training in the form of an allowance of money, per diem and other amounts of money received at the place of service or periodical training;
  30)  amounts paid to natural persons by election commissions, and also from the resources of election funds of candidates and registered candidates for the position of the President of the Russian Federation, candidates, registered candidate deputies of the State Duma; candidates and registered candidate deputies of legislative (representative) public powers of the constituent entity of the Russian Federation; candidates and registered candidates for the position of the chief executive of a constituent entity of the Russian Federation; candidates and registered candidates of an elected body of the local government, candidates, registered candidates for a position of the head of a municipal entity; candidates and registered candidates for a position in another federal state body, a state body of the constituent entity of the Russian Federation stipulated by the Constitution of the Russian Federation, by the Constitution or charter of the constituent entity of the Russian Federation and elected directly by citizens; candidates and registered candidates for another position in a body of local self-government stipulated by the charter of the municipal entity and filled in through direct ballot, of election funds of electoral associations and election blocks for such person's work directly associated with the conduct of election campaigns;
  31)  Disbursements made by trade-union committees (including financial assistance) to members of trade unions except rewards and other disbursements for the performance of labour duties, at the expense of the tax, and also disbursements effected by youth and children's organizations to their members to the charge of membership fees to cover expenses involved in holding cultural, mass entertainment- , physical culture and sport activities.
  32)  prises on Russia state loan bonds and amounts received at the redemption of these bonds;

Article 218. Standard Tax Deductions


 1. When determining the size of the tax base according to Item 2 of Article 210 of the present Code, the taxpayer shall have the right to receive the following standard tax deductions:
  1)  In the amount of 3,000 roubles for each month over a tax period shall be applicable to the following categories of taxpayers:
  -  persons who have contracted radiation sickness or any other diseases associated with the radiation effects due to the Chernobyl catastrophe or associated with projects to mitigate the consequences of the catastrophe at the Chernobyl Atomic Power Plant;
  -  persons who developed disability due to the Chernobyl accident from among the persons who took part in the elimination of consequences of the accident within the limits of the alienation zone, or who are engaged in the operation or in any other works of the Chernobyl Atomic Power Plant (including those who have been sent temporarily or dispatched therefrom), the military servicemen and men liable for call-up who have been called up for special assemblies and attracted to the performance of works associated with the elimination of consequences of the Chernobyl accident, regardless of their stationing or works performed, and also the officers and men of bodies of internal affairs, of the State Fire Service, who were (are) serving in the alienation zone, persons who have been evacuated from the alienation zone and resettled from the settling-out zone, or who have left the said zones voluntarily, persons who have donated their bone marrow to save the lives of victims of the Chernobyl accident, regardless of the time that has passed since the moment of the bone marrow transplantation and the time when they became disabled in this connection;
  -  persons who in 1986-1987 consequences of the Chernobyl accident within the limits of the alienation zone or who were engaged in that period in works associated with the evacuation of the population, material assets or agricultural animals, and in the operation or in any other works at the Chernobyl Atomic Power Plant (including those who were sent temporarily or dispatched therefrom);
  -  military servicemen, citizens discharged from military service and also men liable for call-up who were called up for special assemblies and were attracted in that period to perform works associated with the elimination of consequences of the Chernobyl accident, including flight-operating and technical personnel of civil aviation, regardless of their stationing or works performed;
  -  officers and rank and file members of internal affairs personnel, of the State Fire Service, in particular the persons discharged from military service who were undergoing service in the alienation area of Chernobyl Atomic Power Plant in 1986-1987;
  -  military servicemen, citizens discharged from military service and also men liable for call-up who were called up for military assemblies and participated in 1988-1990 in works on the object "Cover";
  -  persons who became disabled, or who contracted radiation sickness, or any other diseases due to the accident in 1957 at the production association "Mayak" and the radioactive waste disposal into the river Techa from among persons who (including those who were temporarily sent or dispatched) in 1957-1958 participated directly in the works on the elimination of the consequences of the accident in 1957 at the production association "Mayak", and also who were engaged in works on conducting protection activities and rehabilitation of radioactively contaminated territories along the Techa river in 1949-1956, who (including those who were temporarily sent or dispatched) in 1959-1961 participated directly in eliminating the consequences of the accident at the production association "Mayak" in 1957, who were evacuated (resettled) from, and also who voluntarily left the populated localities which became exposed to radioactive contamination due to the accident in the 1957 at the production association "Mayak" and the radioactive waste disposal into the Techa river, including children - among them those who at the time of the evacuation (resettlement) were in the state of intra-uterine development, - and also the military servicemen and the civilian personnel of the military units and the special contingent evacuated in 1957 from the zone of radioactive contamination (in this case the voluntary leavers shall be defined as citizens who from September 29, 1957 until December 31, 1958 inclusive left the populated localities which were exposed to radioactive contamination due to the accident in 1957 at the production association "Mayak", and also those who from 1949 until 1956 inclusive left the populated localities which were exposed to radioactive contamination due to the radioactive waste disposal into the Techa river), persons who reside in the populated localities that were exposed to the radioactive contamination due to the accident in 1957 at the production association "Mayak" and the radioactive waste disposal into the Techa river where the mean annual effective equivalent irradiation dose on May 20, 1993 was still over 1 Mev (additionally, above the level of the natural radiation background for the given locality), persons who moved voluntarily to new places of residence from the populated localities exposed to radioactive contamination due to the accident in 1957 at the production association "Mayak" and the radioactive waste disposal into the Techa river, where the mean annual effective equivalent irradiation dose on May 20, 1993 was still over 1 Mev (additionally, above the level of the natural radiation background for the given locality);
  -  persons who participated directly in the tests of nuclear weapons in the atmosphere and of combat radioactive substances, and in exercises employing such weapons before January 31, 1963;
  -  persons who participated directly in underground nuclear weapons tests under conditions of non-standard radiation situations and the effect of other injurious effects of nuclear weapons;
  -  persons who participated directly in the clean-up of radiation accidents that occurred at nuclear plants of surface and submarine ships and at any other military facilities whose accidents have been registered in the established procedure by the Ministry of Defence of the Russian Federation;
  -  persons (including military servicemen) who participated directly in the works on the assembly of nuclear charges before December 31, 1961;
  -  persons who participated directly in underground nuclear weapons tests, and in conducting and supporting the works on the collection and burial of radioactive substances.
  -  invalids of the Great Patriotic war;
  -  invalids of groups I, II, and III from among the military servicemen who became disabled due to a wound, a concussion or an injury received in the defence of the USSR or in the performance of any other duties of military service, or due to a disease associated with a stay at the front, from among former partisans, and also any other categories of invalids equated in the provision of pensions to said categories of military servicemen;
  2)  the tax deduction of 500 roubles for each month of a tax period shall be applicable to the following categories of taxpayers:
 Heroes of the Soviet Union and Heroes of the Russian Federation, and also persons decorated with the Order of Glory of the three degrees;
  -  civilian personnel of the Soviet Army, the Soviet Navy, bodies of internal affairs of the USSR and State security of the USSR, who held established posts in military units, staffs and institutions which comprised the Army in the Field in the period of the Great Patriotic war, or persons who were in that period in the cities, the participation in whose defence is included for such persons in the period of service for assigning a pension under the preferential terms established for servicemen of the units of the active Army;
  -  participants in the Great Patriotic War, combat operations for the defence of the USSR out of the military servicemen who served in military units, headquarters and institutions incorporated in the army and former guerrillas;
  -  persons who were in Leningrad in the period of its siege in the years of the Great Patriotic war from September 8, 1941 until January 27, 1944, regardless of the duration of staying there;
  -  the former, (including minors) prisoners of concentration camps, ghettos and any other places of confinement created by Nazi Germany and its allies in the period of World War II;
  -  invalids from childhood, and also invalids of the first and second groups;
  -  persons who contracted radiation sickness or any other diseases connected with nuclear fuel, or caused by the consequences of radiation accidents at places of civil or military atomic operations, or as a result of tests, exercises or any other works associated with any types of nuclear installations, including nuclear weapons and space technology;
  -  junior and medium-level medical personnel, physicians and other workers of the medical institutions (with the exception of persons whose professional activity is associated with the work with any type of source of ionizing radiation under the conditions of a radiation situation at their working place corresponding to the character of the work performed) who got an overdose of radiation when rendering medical aid and attending, in the period from April 26 to June 30, 1986, persons who suffered as a result of the Chernobyl accident and who are sources of ionizing radiation;
  -  persons who have donated their bone marrow to save the lives of another persons;
  -  industrial and office workers, and also former military servicemen, and officers and men of the bodies of internal affairs, of the State Fire Service, staff members of institutions and bodies of the criminal and penal system who have since been discharged from service, that have contracted occupational diseases associated with radiation effects at works in the alienation zone of the Chernobyl Atomic Power Plant;
  -  persons (including those who were temporarily sent or dispatched) who in 1957-1958 participated directly in the works on the clean-up of the consequences of the accident in 1957 at the production association "Mayak", and also persons who were engaged in the works on conducting the protective arrangements and the rehabilitation of the radioactively contaminated territories along the Techa river in 1949 - 1956;
  -  persons who were evacuated (resettled) from, and also who left voluntarily the populated localities which became exposed to radioactive contamination due to the accident in 1957 at the production association "Mayak" and the radioactive waste-disposal into the Techa river, including children - among them those who at the moment of evacuation (resettlement) were in the state of intra-uterine development - and also former military servicemen and civilians of the military units and the special contingent evacuated in 1957 from the zone of radioactive contamination. In this case, the voluntary leavers shall be deemed to be citizens who from September 29, 1957 until December 31, 1958, inclusive, left the populated localities which were exposed to radioactive contamination due to the accident in 1957 at the production association "Mayak", and also those who from 1949 until 1956 inclusive left the populated localities which were exposed to radioactive waste disposal into the Techa river;
  -  persons who were evacuated (including those who left voluntarily) in 1986 from the alienation zone which became exposed to radioactive contamination due to the Chernobyl accident, or who have been (are being) resettled from, including those who have left voluntarily, the fall-out zone in 1986 and in subsequent years, including children who at the moment of the evacuation were (are) in the state of intra-uterine development;
  -  parents and spouses of military servicemen who died due to a wound, concussion or injury they suffered in the defence of the USSR or the Russian Federation or in the discharge of any other duties, or due to a disease associated with being at the front line, and also the parents and spouses of government officials who died in the discharge of their official duties. Said deduction shall be granted to spouses of diseased military servicemen and government officials, provided they have not remarried;
  -  citizens who were dismissed from military service or were called up to military assemblies and who fulfilled overseas duty in the Republic of Afghanistan and any other countries where combat operations were conducted;
  3)  the tax deduction of 400 roubles for each month of a tax period shall be applicable to those categories of taxpayers that are not listed in Subitems 1 - 2 of Item 1 of the present Article and it shall be effective for up to a month in which their income calculated in progressive total from the start of the taxable period (which is covered by the tax rate laid down by Item 1 of Article 224 of the present Code) by a tax agent granting aforesaid standard tax deduction, has exceeded 20,000 roubles. Starting with the month when said income exceeds 20,000 roubles, the tax deduction established by the present Subitem shall not apply;
  4)  The tax deduction of 300 roubles for each month of a taxable period shall cover each child of those taxpayers who have in their care a child, the former being the parents or the spouses of the parents, or being guardians or trustees, and it shall be applicable up to the month when their income calculated in progressive total from the start of the taxable period (which is covered by the tax rate laid down by Item 1 of Article 224 of the present Code) by a tax agent granting aforesaid standard tax deduction, has exceeded 20,000 roubles. Starting with the month when said income exceeds 20,000 roubles, the tax deduction established by the present Subitem shall not apply.
 The tax deduction of expenses for the maintenance of a child (children) established by the present Subitem shall be made for each child of up to 18 years of age, and also for each pupil of the daytime format of education, a post-graduate student, a staff physician, a student, a cadet up to the age of 24 years at the parents and (or) spouses, guardians or trustees.
 Double tax deduction shall be made for widows (widowers), single parents, guardians or trustees. Said deduction for single parents, widows (widowers) shall terminate from the month following their marriage.
 Said deduction shall be granted to widows (widowers), single parents, guardians or trustees on the basis of their written applications and documents confirming the right to such a deduction. In so doing, said deduction shall be granted to foreign natural persons, whose child (children) is situated outside the Russian Federation on the basis of documents certified by competent bodies of the state where the child (children) lives (live).
 For the purposes of the present chapter a single parent shall be defined as a parent who is not officially married.
 The tax base shall be reduced from the month of birth of the child (children) or the month when the guardianship (curatorship) is established, and is maintained up to the end of that year in which the child (children) has (have) reached the age stated in paragraph two of the present Subitem or in case of death of the child (children). The tax deduction is granted for a period of education of the child (children) at an educational institution, including a leave of absence which is to be duly made out during education.
 2. The taxpayers who according to Subitems 1-3 of Item 1 of the present Article are entitled to more than one standard tax deduction shall be granted the largest of the corresponding deductions.
 The standard tax deduction established by Subitem 4 of Item 1 of the present Article shall be granted irrespective of granting a standard tax deduction established by Subitems 1-3 of Item 1 of the present Article.
 3. The standard tax deductions established by the present Article shall be granted to the taxpayer by one of tax agents being a source of income disbursement at the choice of the taxpayer on the basis of his written application and documents confirming his right to such tax deductions.
 If a taxpayer begins to work from a month different from the first month of a tax period the deductions specified in Subitems 3 and 4 Item 1 of the present article shall be granted by a given employer with the account taken of the income received since the beginning of the tax period from another employer whereby the taxpayer was provided with tax deductions. The amount of income received shall be documented by a statement of incomes received by the taxpayer issued by the tax agent in keeping with Item 3 Article 230 of the present Code.
 4. If during a tax period the standard tax deductions were not granted to the taxpayer or were granted in a smaller amount than is stipulated by the present Article, upon termination of the tax period on the basis of the taxpayer's application, enclosed with the tax declaration and documents confirming the right to such deductions, the tax authorities shall recalculate the tax base with regard to granting standard tax deductions in the amounts stipulated by the present Article.

Article 219. Social Tax Deductions


 1. When determining the size of the tax base according to Item 2 of Article 210 of the present Code, the taxpayer shall be entitled to the following social tax deductions:
  1)  in the amount of incomes transferred by the taxpayer to charities in the form of assistance in cash to organizations of science, culture, education, public health services and social security, partially or fully funded from appropriate budgets, and also to organizations of physical culture and sports, educational and pre-school establishments for needs of physical education of citizens and to the upkeep of sports teams in the amount of actually effected expenses, as well as in the amount of donations transferred (paid) by a taxpayer to religious organizations for exercising by them of the activities stipulated by their statutes, but no more than 25 per cent of the amount of income received over a tax period;
  2)  in the amount paid by the taxpayer over a tax period for his education at educational establishments - in the amount of actually effected expenses for education, but no more than 38,000 roubles, and also in the amount paid by the taxpayer - a parent for education of his children of up to 24 years of age, a trustee taxpayer (guardian taxpayer) for the training of his or her wards at the age of up to 18 years in the day time format of education in educational establishments, - in the amount of actually effected expenses for this education but no more than 25,000 roubles per child in total for both parents (the trustee or guardian).
 The right to receive the said social tax deduction shall cover the taxpayers who performed the duties of a trustee or guardian over citizens who were their wards after the termination of the trusteeship or guardianship in the cases of payment by the taxpayer for the training of the said citizens at the age of up to 24 years on the day form of training at educational institutions.
 Said social tax deduction shall be granted, provided the educational establishment has a corresponding license or another document confirming the status of the educational institution, and also upon submission by the taxpayer of documents confirming his actual expenses for training.
 The social tax deduction is granted for the period of education of said persons in an educational institution, including a leave of absence which was duly taken during education;
  3)  in the amount paid by the taxpayer during a tax period for services in treatment granted to him by medical establishments of the Russian Federation, and also paid by the taxpayer for services in treatment of his/her spouse, his/her parents and (or) his/her children of up to 18 years of age in medical establishments of the Russian Federation (according to the list of medical services approved by the Government of the Russian Federation), and also in the amount of the cost of drugs (according to the list of drugs approved by the Government of the Russian Federation) prescribed to him by a treating doctor and purchased by taxpayers at their own expense.
 The total amount of social tax deduction laid down by the present Subitem can not exceed 38,000 roubles.
 For expensive types of treatment in medical establishments of the Russian Federation, the amount of tax deduction shall be accepted in theamount of actually borne expenses. The list of expensive types of treatment shall be approved by a decision of the Government of the Russian Federation.
 The deduction of amounts of payment of treatment cost shall be granted to the taxpayer if the treatment took place in the medical establishments that have the required licenses to engage in medical activities, and also if the taxpayer submits documents confirming his actual expenses for the treatment and purchase of drugs.
 Aforesaid social tax deduction shall be granted to the taxpayer if the treatment and purchased drugs were not paid for by an organization to the charge of funds of employers.
 2. Social tax deductions shall be granted on the basis of written application of the taxpayer when the taxpayer submits his tax declaration to the tax authorities upon the lapse of the tax period.

Article 220. Property Tax Deductions


 1. When determining the size of the tax base according to Item 2 of Article 210 of the present Code, the taxpayer shall be entitled to the following property tax deductions:
  1)  in the amounts received by the taxpayer over a tax period from the sale of apartment houses, flats, summer cottages, garden houses or land plots which have been owned by the taxpayer for less than five years, but in general not more than 1,000,000 roubles, and also in the amount received in a tax period from sale of other property, of a share (a part thereof) in the authorized capital of an organization, which have been owned by the taxpayer for less than three years, but not more than 125,000 roubles. When selling apartment houses, flats, summer cottages, garden houses and land plots which have been owned by the taxpayer for five years or more, and also other property, of a share (a part thereof) in the authorized capital of an organization which have been owned by the taxpayer for three years and more, the property tax deduction shall be granted in the amount received by the taxpayer through sale of said property, of a share (a part thereof) in the authorized capital of an organization;
 Instead of exercising his right to property tax deduction stipulated by the present Subitem, the taxpayer shall have the right to reduce the amount of taxed incomes by the amount of his actual expenses, proved by documents, and involved in the receipt of these incomes, except for sale by the taxpayer of securities owned by him.
 The peculiarities of tax base calculation, of the calculation and payment of the tax on incomes under transactions in securities and transactions in time deal instruments of which the base asset is securities are established by Article 214.1 of the present Code.
 When selling property that is in common share or common joint ownership, the appropriate size of property tax deduction calculated according to the present Subitem shall be distributed between the co-owners of this property in proportion to their share or under an arrangement between them (in case of sale of property that is in common joint ownership).
 The provisions of the present Subitem shall not apply to incomes received by individual businessmen from sale of property in connection with performance of their business activities;
  2)  In the amount spent by the taxpayer for new construction or acquiring on the territory of the Russian Federation of an apartment house or a flat, in the amount of his actual expenses, and also in the amount used to repay a mortgage received by the taxpayer in banks of the Russian Federation and actually spent by him on new construction or on the purchase of an apartment house or flat on the territory of the Russian Federation.
 The overall size of property tax deduction defined by the present Subitem can not exceed 1 000,000 roubles disregarding amounts used to repay a mortgage received by the taxpayer in banks of the Russian Federation and actually spent by him on new construction or on the purchase of an apartment house or flat on the territory of the Russian Federation.
 Aforesaid property tax deduction shall be granted to the taxpayer on the basis of the taxpayer's written application and documents confirming the property title to a bought (constructed) apartment house or a flat, and also duly made out payment documents confirming that the taxpayer paid money resources (receipts to credit slips, bank abstracts on transfer of money resources from the buyer's accounts to an account of the vendor, documentary and cash vouchers, certificates on purchase of materials from natural persons, including details on the address and passport data of the vendor and other documents).
 When acquiring property in common share or common joint ownership, the size of property tax deduction computed according to the present Subitem shall be distributed between the co-owners according to their share in the ownership or with their written application (in case of acquiring an apartment house or flat into common joint ownership).
 The property tax deduction laid down by the present Subitem shall not apply in cases when the payment of expenses to construct or to purchase an apartment house or flat for the taxpayer is made to the charge of funds of employers or other persons, and also in cases when the purchase and sale transaction of an apartment house or flat is performed between related natural persons according to Item 2 of Article 20 of the present Code.
 A taxpayer may not be granted repeated property tax deduction stipulated by the present Subitem.
 If over a tax period the property tax deduction can not be used entirely then its balance can be rolled over to the subsequent tax periods until it is exhausted.
 2. Property tax deductions (except tax property deductions relating to transactions in securities) shall be granted on the basis of a written application of the taxpayer when the taxpayer submits his tax declaration to tax authorities upon the lapse of the tax period.
 When tax base is being calculated in relation to transactions in securities a tax property deduction shall be granted in accordance with the procedure established by Article 214.1 of the present Code.

Article 221. Professional Tax Deductions


 When calculating the tax base according to Item 2 of Article 210 of the present Code, the following categories of taxpayers shall be entitled to professional tax deductions:
  1)  taxpayers listed in Item 1 of Article 227 of the present Code in the amount actually spent by them and proved by documents expenses directly involved in the generation of incomes.
 In so doing, said expenses shall be accepted for deduction in the composition determined by a taxpayer independently in the procedure similar to that for determining expenses for the purposes of taxation established by the Chapter "Tax on Profits of Organizations"
 The amounts of personal property tax paid of taxpayers defined in the present Subitem shall be accepted for deduction if this property being an item of taxation according to Articles of the Chapter "The Personal Income Tax" (except for apartment houses, flats, summer cottages and garages) is directly used to carry out business activity.
 If the taxpayers can not provide documentary evidence of expenses connected with their activity as individual businessmen, the professional tax deduction shall be made at the rate of 20 per cent of the total amount of incomes received by the individual businessman from business activity. The present provision shall not apply to natural persons engaged in business activity without the formation of legal person, but who have not registered as individual businessmen;
  2)  taxpayers receiving incomes from performance of works (rendering of services) under civil contracts, - in the amount of their actual expense supported by documents - the former being directly involved in the performance of these works (rendering of services);
  3)  taxpayers receiving awards or compensation for creating, performance or another use of works of science, literature of art, compensation to authors of discoveries, inventions and industrial models in the amount of their actual expense supported by documents.
 If these expenses can not be supported by documents they shall be accepted for deduction in the following amounts:

Stantard rate
of expenses
(in per cent
to amount
of accrued
income)
Creation of literary works, including those for theatre,
cinema, variety artists, circus 20
Creation of fine arts and graphic works, photo works
for publications, architecture and design works 30
Creation of sculptures, monumental and decorative
paintings, works of decorative and applied arts, works
of easel-painting, of theatre and cinema arts
and graphical works of
various techniques 40
Creation of audio-visual works (video, television and
cinema films) 30
Creation of musical works:
musical and scenic works, (operas, ballet performances,
musical comedies), symphonic, choral, chamber works,
works for brass bands, original music for cinema films,
television and video films and
theatre productions 40
other musical works, including those
prepared for publication 25
Performance of works of literature and arts 20
Creation of scientific works and designs 20
Discoveries, inventions and creation of industrial
models (to the amount of income received over the first
two years of their use) 30


 For the purposes of the present article "taxpayer's expenses" also include the amounts of tax envisaged by the applicable tax and fee legislation in respect of the kinds of activity specified in the present article (except the tax on incomes of natural persons) accrued or paid by the taxpayer in the tax period.
 When determining the tax base, the expenses confirmed by documents can not be taken into account at the same time as the expenses within the limits of the authorized norms.
 The taxpayers specified in the present Article shall exercise their right to professional tax deductions upon filing an application in writing with a tax agent.
 In the absence of a tax agent the taxpayers specified in the present Article shall exercise their right to professional tax deductions upon filing an application in writing with a tax body simultaneously with filing a tax return on the expiry of a tax period.

Article 222. Authorities of Legislative (Representative) Bodies of the Constituent Entities of the Russian Federation in the Establishment of Social and Property Deductions


 Within the limits of social tax deductions established by Article 219 of the present Code, and property tax deductions established by Article 220 of the present Code legislative (representative) bodies of the constituent entities of the Russian Federation may establish other amounts of deductions with due account of their own region.

Article 223. The Date of Actual Receipt of Income


 1. For the purposes of the present Chapter, unless otherwise stipulated by Item 2 of the present Article, the date of actual receipt of income shall be defined as the day of:
  1)  disbursement of income, including the transfer of the income to accounts of the taxpayer held with banks or by his instruction to accounts of third persons at the receipt of incomes in cash;
  2)  transfer of incomes in kind - when incomes are received in kind;
  3)  payment by the taxpayer of interest on received borrowed (credit) funds, on purchase of goods (works, services), on purchase of securities if incomes are received in the form of material benefit.
 2. Upon the receipt of income in the form of remuneration for labour, the date of actual receipt by the taxpayer of such an income shall be defined as the last day of the month for which the income for performed job duties was charged to him according to the labour contract (the agreement).

Article 224. Tax rates


 1. The tax rate shall be established in the amount of 13 per cent, unless otherwise stipulated by the present Article.
 2. The tax rate shall be established in the amount of 35 per cent concerning the following incomes:
 cost of prizes and prizes received in competitions, games and other activities held with the purposes of advertising goods, works and services, in the part exceeding the amounts stated in Item 28 of Article 217 of the present Code;
 insurance under voluntary insurance contracts in the part exceeding the amounts stated in Item 2 of Article 213 of the present Code;
 interest income on bank deposits in as much as it concerns the surplus amount calculated on the basis of the effective refinancing rate of the Central Bank of the Russian Federation during the period for which interest is accrued, on rouble deposits (except for the time pension deposits made at least for a six-month term) and nine per cent per annum on foreign currency deposits;
 amounts of economic gain on interest when the taxpayers receive borrowed funds in the part exceeding the amounts specified in Item 2 of Article 212 of the present Code.
 3. The tax rate shall be established in the amount of 30 per cent with respect to all the incomes received by natural persons who are not tax residents of the Russian Federation.
 4. The tax rate shall be established in the amount of six per cent with respect to the incomes from the share participation in the activity of organisations received in the form of dividends.

Article 225. The Order of Calculation of Tax


 1. When determining the tax base according to Item 3 of Article 210 of the present Code, the amount of tax shall be calculated as a percentage share of the tax base corresponding to the tax rate established by Item 1 of Article 224 of the present Code.
 When determining the tax base according to Item 4 of Article 210 of the present Code, the amount of tax shall be calculated as a percentage share of the tax base according to the tax rate.
 2. The total amount of tax represents an amount received as a result of addition of amounts of tax calculated according to Item 1 of the present Article.
 3. The total amount of the tax shall be calculated by results of a tax period as regards all incomes of the taxpayer whose date of receipt falls within the respective tax period.
 4. The tax shall be calculated in whole roubles. An amount of tax less than 50 copecks shall be rejected, while 50 copecks or more shall be rounded up to a whole rouble.

Article 226. Features of Calculation of Tax by Tax Agents. The Order and Terms of Payment of Tax by Tax Agents


 1. Russian organizations, individual businessmen and permanent representations of foreign organizations in the Russian Federation from which or as a result of the relations with which the taxpayer has received incomes indicated in Item 2 of the present Article, are obliged to calculate, to withhold from the taxpayer and to pay the tax computed according to Article 224 of the present Code with allowance for features stipulated by the present Article. The tax on lawyers' incomes shall be calculated, withheld and paid by colleges of solicitors/barristers, solicitor/barrister bureaux and lawyer's offices.
 Russian organizations specified in the present Item, individual businessmen and permanent representations of foreign organizations, the colleges of solicitors/barristers, solicitor/barrister bureaux and lawyer's offices, in the Russian Federation are referred to in the present Chapter as tax agents.
 2. Calculation of the amounts and payment of tax according to the present Article are made for all incomes of the taxpayer, whose source is the tax agent, except for the incomes concerning which the calculation and payment of the tax are made according to Articles 214.1, 217 and 228 of the present Code with offset of the previously withheld amounts of tax.
 3. Tax agents shall calculate amounts of tax in progressive total from the beginning of the tax period by results of each month as regards all incomes covered by the tax rate established by Item 1 of Article 224 of the present Code accrued to the taxpayer over the period in question, with the account taken of the tax amount withheld in the preceding months of the current tax period.
 Amount of the tax with reference to incomes concerning which other tax rates are applied shall be calculated by the tax agent separately for each amount of said income accrued to the taxpayer.
 The tax shall be calculated without account of incomes received by the taxpayer from other tax agents and amounts withheld by other tax agents.
 4. Tax agents are obliged to withhold the computed amount of tax directly from incomes of the taxpayer upon their actual disbursement.
 The deduction at the taxpayer of the charged amount of tax shall be made by the tax agent to the charge of any funds paid by the tax agent to the taxpayer, upon the actual disbursement of aforesaid funds to the taxpayer or by his instruction to third persons. In so doing, the withheld tax can not exceed 50 per cent of the amount of disbursement.
 5. If the computed amount of tax can not be withheld at the taxpayer within one month from the time such circumstances occurred, the tax agent is obliged to inform the tax authorities in written form at the place of his registration on his inability to withhold the tax and the arrears of the taxpayer. As the inability to withhold tax, in particular, shall be recognized cases when it is obviously known that the period during which the sum of accrued tax can be withheld, will exceed 12 months.
 6. The tax agents are obliged to transfer the amounts of calculated and withheld tax no later the day of actual receipt in the bank of effective cash to disburse the income, and also of the income transfer day from accounts of the tax agents with the bank to accounts of the taxpayer or by his instruction to bank accounts of third persons.
 In other cases, tax agents shall transfer the calculated and withheld tax no later than the day following actual receipt by the taxpayer of the income, - for incomes disbursed in cash and also the day following the actual deduction of the calculated amount of tax - for incomes received by the taxpayer in kind or in a form of financial assistance.
 7. The aggregate sum of tax calculated and withheld by a tax agent from the taxpayer for which he is recognized as the source of income shall be paid at the place where the tax agent is registered with a tax body.
 Tax agents, Russian organizations, specified in Item 1 of the present article, that have detached units are obliged to transfer amounts of calculated and withheld tax both at the place of their location, and at the place of each of its detached units.
 The amount of the tax payable to the budget at the location of detached units shall be defined on the basis of amount of taxable income, charged and paid to workers of such detached units.
 8. Withheld by a tax agent from incomes of natural persons concerning which he is recognized as the source of income, the aggregate amount of tax exceeding 100 roubles, shall be transferred to the budget in the order established by the present Article. If the aggregate sum of the withheld tax payable to the budget constitutes less than 100 roubles, it shall be added to the amount of tax subject to transfer to budget in the next month, but no later than December of the current year.
 9. It is not allowed to pay tax at the expense of funds of tax agents. When concluding contracts and other deals, it is prohibited to include into such any tax clauses according to which income paying tax agents shall undertake to bear expenses connected with the payment of tax for natural persons.

Article 227. Features of Calculation of Amounts of Tax by Individual Entrepreneurs and Other Persons Engaged in Private Practice. The Order and Terms of Payment of Tax, and the Order and Terms of Payment of Advance Payments by Said Persons


 1. The calculation and payment of tax according to the present Article shall be made by the following taxpayers:
  1)  natural persons registered in the order established by the current legislation and engaged in business activity without the status of a legal person - on amounts of incomes received from such activities;
  2)  private notaries and other persons engaged in the order established by the current legislation in private practice - on amounts of incomes received from such activity.
 2. Taxpayers named in Item 1 of the present Article shall independently calculate the tax payable to the appropriate budget in the order established by Article 225 of the present Code.
 3. The total amount of tax payable to the appropriate budget shall be calculated by the taxpayer with allowance for the tax withheld by tax agents upon the disbursement to the taxpayer of the income, and also amounts of advance payments under the tax actually paid to the appropriate budget.
 4. Losses of past years incurred by the natural person shall not reduce the tax base.
 5. The taxpayers named in Item 1 of the present Article are obliged to present to the tax authorities at the place of their registration the appropriate tax declaration by times established by Article 229 of the present Code.
 6. The total sum of tax payable to the appropriate budget calculated according to the tax declaration with allowance for provisions of the present Article shall be paid at the place of registration of the taxpayer no later than July 15 of the year following the lapsed tax period.
 7. If during the year the taxpayers named in Item 1 of the present Article will obtain any incomes received from the accomplishment of business activity or from pursuit of a private practice, the taxpayers are obliged to present the tax declaration stating the amount of the anticipated income from said activity in the current tax period to the tax authorities within five days upon the completion of the month from the date of appearance of such incomes. In so doing, the sum of the anticipated income shall be determined by the taxpayer.
 8. The calculation of the sum of advance payments shall be made by the tax authority. Amounts of advance payments on the current tax period shall be made by the tax authorities on the basis of the amount of anticipated income stated in the tax declaration or the amount of the actually received income from activity types stated in Item 1 of the present Article for the previous tax period with allowance for tax deductions stipulated by Articles 218 and 221 of the present Code.
 9. Advance payments are paid by the taxpayer on the basis of the tax notices:
  1)  for January - June - not later than July 15 of the current year in the amount of half of the annual amount of advance payments;
  2)  for July - September - no later than October 15 of the current year in the amount of one quarter of the annual amount of advance payments;
  3)  for October - December - no later than January 15 of the next year in the amount of one quarter of the annual amount of advance payments.
 10. In case of a significant (by more than 50 per cent) increase or reduction of income over a tax period, the taxpayer is obliged to present a new tax declaration which is to give details on the amount of the anticipated income from performance of activity indicated in Item 1 of the present Article for the current year. In this case, the tax authorities shall recalculate the amounts of advance payments for the current year as regards the outstanding deadlines of payment.
 The recalculation of the amounts of advance payments is made by the tax authorities not later than within five days from receipt of the new tax declaration.

Article 228. Features of Calculation of Tax Concerning Certain Types of Incomes. The Order of Payment of Tax


 1. The calculation and payment of tax according to the present Article shall be made by the following categories of taxpayers:
  1)  natural persons - on the basis of amounts of compensations received from natural persons who are not tax agents under concluded civil contacts, including the incomes under employment contracts or rent contracts of any property;
  2)  natural persons - proceeding from the amounts received from the sale of property belonging thereto on the right of ownwership;
  3)  natural persons - tax residents of the Russian Federation who receive incomes from sources located outside the Russian Federation - on the basis of amounts of such incomes;
  4)  natural persons receiving other incomes, during whose receipt the tax agents have withheld no tax - on the basis of amounts of such incomes.
  5)  the natural persons receiving prises disbursed by the organisers of lotteries, totalizator and other risk-based gambling games (in particular, those involving the use of gambling machines), proceeding from the amounts of such prises.
 2. The taxpayers specified in Item 1 of the present Article shall independently calculate the amounts of tax payable to the appropriate budget in the order established by Article 225 of the present Code.
 The total amount of tax payable to the appropriate budget shall be calculated by the taxpayer with allowance for amounts of the tax withheld by tax agents upon disbursement of income to the taxpayer. In so doing, losses of the past years sustained by the natural person shall not reduce the tax base.
 3. The taxpayers listed in Item 1 of the present Article, are obliged to present the appropriate tax declaration to the tax authorities at the place of their registration.
 4. The total amount of tax payable to the appropriate budget calculated on the basis of the tax declaration with allowance for provisions of the present Article shall be paid at the place of residence of the taxpayer no later than July 15 of the year following the expired tax period.
 5. The taxpayers who received incomes, in the course of which disbursement the tax agents did not withhold any amount of tax, shall pay the tax in two equal installments: the first - no later than 30 days from the date of delivery by the tax authorities of the tax notice on the payment of tax, the second - not later than 30 days after the first term of payment.

Article 229. The Tax Declaration


 1. A tax declaration shall be submitted by the taxpayers named in Articles 227 and 228 of the present Code.
 The tax declaration shall be submitted no later than April 30 of the year following an expired tax period.
 2. Persons who are not obliged to submit a tax declaration shall have the right to submit such a declaration to the tax authorities at their place of residence.
 3. When the activities specified in Article 227 of the present Code and/or the termination of the disbursements specified in Article 228 of the present Code cease to exist, up to the end of the tax period within five days from the date of termination of such activities or such disbursements, taxpayers are obliged to present a declaration on the actually received incomes in the current tax period.
 If during a calendar year a foreign natural person stops an activity the incomes from which are subject to taxation according to Articles 227 and 228 of the present Code and leaves the territory of the Russian Federation, the tax declaration on incomes actually received over the period of his stay within the current tax period on the territory of the Russian Federation, should be presented by him no later than one month before his departure from the territory of the Russian Federation.
 The tax which is charged in addition to the tax declarations the order of which submission is defined by the present Item shall be paid no later than 15 days from the time of submission of such declaration.
 4. In the tax declarations, the natural persons shall state all the incomes they have received over the tax period, sources of their disbursement, tax deductions, the amount of tax withheld by tax agents, and the amount of advance payments actually paid during a tax period, tax amounts payable (additionally payable) or refundable according to the results of the tax period".

Article 230. Enforcement of Provisions of the Present Chapter


 1. The tax agents shall keep account of incomes natural persons received from them over a tax period on the form established by the Ministry of Taxation of the Russian Federation.
 2. The tax agents shall submit to tax authorities at the place of their registration information about incomes of the natural persons over this tax period and amounts of taxes charged and withheld over this tax period, annually, no later than April 1 of the year following a lapsed tax period on the form approved by the Ministry of Taxation of the Russian Federation.
 Said information shall be submitted on magnetic media or via telecommunication facilities in the manner defined by the Ministry of Taxation of the Russian Federation.
 Tax authorities shall forward such information to tax authorities at the place of residence of natural persons.
 In so doing, no information shall be reported on incomes paid to individual entrepreneurs for goods bought from them, products or performed works (services provided) if such individual entrepreneurs have presented to the tax agent documents confirming their state registration as entrepreneurs without the status of legal person and registration with the tax bodies. If the number of natural persons who have received incomes over a tax period is up to 10 persons, the tax agents can submit such information on paper.
 In exceptional cases with allowance for special features of activity or features of the location of organizations, tax authorities can grant separate organizations the right to report incomes of natural persons on paper.
 3. Tax agents shall issue to natural persons upon their request information on incomes received by the natural persons and withheld amounts of tax on the form approved by the Ministry of Taxation of the Russian Federation.

Article 231. Tax Collection and Refund Procedure


 1. Amounts of tax unduly withheld by a tax agent from incomes of the taxpayer shall be returned by a tax agent after the taxpayer submits a corresponding application.
 2. Amounts of tax not withheld from natural persons or partially withheld by tax agents shall be collected by such from natural persons until these persons repay in full the tax arrears in the manner stipulated by Article 45 of the present Code.
 3. Amounts of tax not collected as a result of tax evasion by the taxpayer shall be collected for the entire time of tax evasion.

Article 232. Avoidance of Double Taxation


 1. Amount of tax on incomes received outside the Russian Federation and actually paid outside the Russian Federation by a taxpayer who is a tax resident of the Russian Federation pursuant to the legislation of other states, are not accepted to offset tax payment in the Russian Federation, except as otherwise provided by an appropriate agreement (treaty) on avoidance of double taxation.
 2. For exemption from the tax, offset, or to receive tax deductions or other tax privileges, the taxpayer should present to bodies of the Ministry of Taxation of the Russian Federation official confirmation that he is the resident of the state with which the Russian Federation has an agreement (treaty) on avoidance of double taxation and also a document on the income received and on his tax payment outside of the Russian Federation confirmed by the tax body of a respective foreign state which has been effective during the tax period (or a part thereof) in question. Confirmation can be submitted either before the payment of tax or advance payments on the tax or within one year after the end of that tax period on results of which the taxpayer applies to receive exemption from the tax, offset, tax deductions or privileges.

Article 233. Final Provisions


 Tax benefits granted by legislative (representative) bodies of constituent entities of the Russian Federation as regards amounts of tax remitted pursuant to the legislation of the Russian Federation to their budgets up to the day of entry into force of the present Code, shall be effective during the period for which these tax benefits were granted. If upon the establishment of tax benefits the period of time was not defined during which these tax benefits can be used, such tax benefits shall terminate to operate by decision of legislative (representative) bodies of the Russian Federation.

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