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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 25. Tax on Organisations' Profit


Article 246. Tax Payers


 Recognised as the taxpayers of the tax on the profit of organisations (hereinafter in the present Chapter 'the taxpayers') shall be:
  -  Russian organisations;
  -  foreign organisations carrying out their activity in the Russian Federation through their permanent representations and (or) receiving incomes from sources situated in the Russian Federation.

Article 247. Object of Taxation


 Seen as an object of taxation for the tax on the profit of organisations (hereinafter in this Chapter 'the tax') shall be profit derived by the taxpayer.
 Recognised as profit for the purposes of the present Chapter shall be:
  1)  for Russian organisations - derived incomes, reduced by the amount of the effected expenditures which are defined in conformity with the present Chapter;
  2)  for foreign organisations performing an activity in the Russian Federation through permanent representations incomes derived through these permanent representations, reduced by the amount of the outlays made by these permanent representations which are defined in conformity with this Chapter;
  3)  for other foreign organisations - incomes derived from sources situated in the Russian Federation. The incomes of the said taxpayers shall be determined in conformity with Article 309 of the present Code.

Article 248. Procedure for Defining Incomes. Classification of Incomes


 1. For the purposes of the present Chapter, to incomes shall be referred:
  1)  the incomes derived from the sale of commodities (works, services) and of the rights of property (hereinafter, the incomes from sale);
 For the purposes of this Article goods shall be defined in compliance with Item 3 of Article 38 of this Code;
  2)  the extra-sale incomes.
 When defining the incomes, from the latter shall be excluded the amounts of the taxes presented in conformity with this Code by the tax payer to the buyer (to the acquirer) of commodities (works, services or property rights).
 The incomes shall be defined on the basis of the initial documents and of tax recording documents.
 The incomes from sale shall be defined in the order established by Article 249 of the present Code, with account for the provisions of the present Chapter.
 The extra-sale incomes shall be defined in the order established by Article 250 of the present Code, with account for the provisions of this Chapter.
 2. For the purposes of the present Chapter, the property (works, services) or the rights of property shall be seen as received free of charge, if the receipt of this property (works, services) or of the rights of property is not involved in the emergence of the receiver's duty to pass on the property (rights of property) to the person who is handing them over (to perform certain work for the handing over person or to render a service to the handing over person).
 3. Incomes of a taxpayer expressed in foreign currency shall be recorded together with the incomes expressed in roubles.
 Incomes of a taxpayer expressed in conventional units shall be recorded together with the incomes expressed in roubles.
 Conversion of said incomes shall be effected by a taxpayer depending on the method of recognizing incomes chosen by him in his accounting policy in compliance with Articles 271 and 273 of this Code.
 For the purposes of this Chapter, the amounts shown in the composition of a taxpayer's income shall not be subject to a repeated inclusion into the composition of his incomes.

Article 249. Incomes from Sale


 1. Recognised as the incomes from sale for the purposes of this Chapter shall be earnings derived from the sale of commodities (works, services) both of own manufacture and of those acquired before, as well as the earnings from the sale of property.
 2. The earnings from sale shall be defined proceeding from all the receipts connected with settlements for the sold commodities (works, services) or for the rights of property expressed in the form of money and (or) in kind. Depending on the method of recognizing receipts and expenditures chosen by a taxpayer, proceeds connected with settlements for sold goods (works, services) or the rights of property shall be recognized for the purposes of this Article in compliance with Article 271 and 273 of this Code.
 3. The specifics in defining the incomes from sale for the individual categories of the taxpayers, or the incomes from sale derived in connection with particular circumstances shall be established by the provisions of the present Chapter.

Article 250. Extra-Sale Incomes


 For the purposes of this Chapter, recognised as extra-sale incomes shall be the incomes not mentioned in Article 249 of the present Code.
 In particular, seen as the extra-sale incomes of the taxpayers shall be incomes derived:
  1)  from share participation in other organisations;
  2)  from the positive (negative) difference of exchange rates arising when the rate of sale (purchase) of foreign currency is higher (lower) than the official exchange rate of foreign currency established by the Central Bank of Russia on the date of transfer of ownership of the foreign currency ( the specifics of defining the banks' incomes from these transactions are established by Article 290 of this Code);
  3)  in the form of fines, penalties and (or)other sanctions acknowledged by debtors and subject to payment by debtors on the basis of an effective court decision, as well as of the sums of compensation for losses or for damage;
  4)  from letting the property for rent (into sub-rent), where such incomes are not determined by a taxpayer in the procedure established by Article 249 of this Code;
  5)  from giving over to use the rights to the results of intellectual activity and to the means of individualisation equated to them (in particular, from giving over to use the rights arising from patents for inventions, industrial samples and other kinds of intellectual property), where such incomes are not determined by a taxpayer in the procedure established by Article 249 of this Code;
  6)  in the form of interest received under contracts of borrowing, credit, bank account, bank deposit, as well as on securities and other debt liabilities (the specifics of defining the banks' incomes in the form of interest are established by Article 290 of the present Code);
  7)  in the form of the sums of replenished reserves, the outlays on whose formation were accepted in the composition of the outlays in the order and on the terms established by Articles 266, 267, 292, 294, 300 324 and 324.1 of the present Code;
  8)  in the form of the gratuitously received property (works, services) or of the rights of property, with the exception of the cases pointed out in Article 251 of the present Code.
 When receiving property (works, services) free of charge, incomes shall be estimated proceeding from the market prices defined subject to the provisions of Article 40 of this Code, but no less than the residual cost determined in compliance with this Chapter, as regards depreciated property, and no less than the cost of production (acquisition), as regards other property (carried out works, rendered services). Information on the prices shall be confirmed by the taxpayer receiving the property (works, services), either in documented form or by making an independent estimate;
  9)  in the form of income distributed in favour of the taxpayer, if he is a member of a simple partnership, in accordance with the order envisaged by Article 278 of the present Code.
  10)  in the form of the income of the past years exposed in the accounting (tax) period;
  11)  in the form of the positive exchange rate difference arising from the revaluation of the property in the form of currency values and of claims (liabilities) whose cost is expressed in foreign currency, including those on the currency accounts in banks which is performed in connection with a change in the official exchange rate of the foreign currency to the rouble of the Russian Federation fixed by the Central Bank of the Russian Federation;
 For the purposes of this Chapter positive difference of exchange rates shall mean the difference of exchange rates arising in the event of revaluation of property in the form of currency values and claims shown in foreign currency, or in the event of marking down liabilities shown in foreign currency;
 11.1) in the form of the sum difference a taxpayer has, when the sum of arising claims and liabilities calculated on the basis of the exchange rate of conventional monetary units, established by agreement of the parties on the date of sale (posting) of goods (works, services) and property rights, does not comply with the actually received (paid) amount in roubles;
  12)  in the form of fixed assets and intangible assets received free of charge in compliance with international treaties of the Russian Federation or with the laws of the Russian Federation by nuclear power plants for enhancing their safety, which are not used for production purposes;
  13)  in the form of the cost of received materials or other property during their pulling down or dismantling, when fixed assets are put out of operation in cases of their liquidation (with the exception of the cases envisaged by Subitem 19 of Item 1 of Article 251 of the present Code);
  14)  in the form of the property (monetary funds included), works and services, utilised other than in accordance with their intention, which were received in the framework of charitable activity (including charitable assistance and donations), of purpose-oriented receipts and purpose-oriented financing, with the exception of budgetary funds. With respect to the budgetary funds used other than for the target purposes, the norms of the budgetary legislation of the Russian Federation shall be applied.
 The taxpayers who have received property (monetary funds included), works or services in the framework of charitable activity, or purpose-oriented incomings, or purpose-oriented financing, shall submit to the tax bodies at the place of their recording, after the end of the tax period, a report on the purpose-oriented utilisation of the received funds, which shall be compiled in accordance with the form approved by the Ministry of Taxation of the Russian Federation.
  15)  in the form of received purposive funds intended for the formation of reserves for development and ensuring the functioning and safety of nuclear power plants, or in the form of monetary assets received by nuclear power plants from said reserves, which have been used for other than the intended purposes;
  16)  in the form of the sums by which the authorised (summed up) capital (fund) of the organisation was reduced over the accounting (tax) period, if such reduction was effected with a simultaneous refusal of return of the cost of the corresponding part of the contributions (deposits) to the organisation's shareholders (partners) (with the exception of the cases envisaged by Subitem 18 of Item 1 of Article 251 of the present Code);
  17)  in the form of the return from a non-profit organisation of the earlier made contributions (deposits), if such contributions (deposits) were earlier recorded in the composition of the outlays on the creation of the tax base;
  18)  in the form of the sums of credit indebtedness (of a liability to the creditors), which is written off in connection with an expiry of the term of legal limitation or on the other grounds, with the exception of the cases envisaged by Subitem 22 of Item 1 of Article 251 of the present Code;
  19)  in the form of the incomes derived from transactions with the financial instruments of futures deals, taking into account the provisions of Articles 301-305 of this Code;
  20)  in the form of the cost of the surpluses of the commodity material values and other property, exposed as a result of making an inventory;
  21)  in the form of the cost of mass media products and books subject to exchange in the event of return or writing off of such products for the reasons provided for by Subitems 43 and 44 of Item 1 of Article 264 of this Code.

Article 251. Incomes Not Recorded When Defining the Tax Base


 1. When defining the tax base, the following incomes shall not be taken into account:
  1)  in the form of the property and (or) rights of property, works or services received from the other persons as pre-payment for commodities (works, services) by the taxpayers, defining the incomes and outlays in accordance with the method of calculation;
  2)  in the form of property and (or) the rights of property received in the form of a pawn or of caution money as the security against liabilities;
  3)  in the form of property, rights of property or non-property rights assessed in cash, which are received in the form of contributions (deposits) to the authorized (pooled) capital (fund) of an organization (including income in the form of an excess of the price of placement of stocks (shares) over their nominal cost (initial amount));
  4)  in the form of property and (or) rights of property received within the limits of the initial contribution made by a partner of an economic company or partnership (by his legal successor or heir) when he leaves (withdraws from) the economic company or partnership, or if the property of a liquidated company or partnership is distributed between its participants;
  5)  in the form of property, rights of property and (or) non-property rights assessed in cash which are received within the limits of the initial contribution made by a participant in a simple partnership contract (joint activity contract) or by his legal successor, in the event of detachment of his share from the property in the joint ownership of the participants of the contract, or in the case of dividing such property;
  6)  in the form of the funds received as gratuitous aid (assistance) to the Russian Federation in accordance with the procedure laid down by the Federal Law on Gratuitous Aid (Assistance) to the Russian Federation and on the Introduction of Amendments and Addenda into the Individual Legislative Acts of the Russian Federation on Taxes, and on the Establishment of Privileges for Payments into the State Extra-Budgetary Funds in Connection with Rendering Gratuitous Aid (Assistance) to the Russian Federation;
  7)  in the form of the fixed assets and the non-material assets, received free of charge in conformity with the international treaties of the Russian Federation by the nuclear power plants for raising their safety, which have been used for production purposes;
  8)  in the form of the property received by budgetary organizations by decision of the executive power bodies of all levels;
  9)  in the form of the funds which have come in to a broker, agent and (or) other attorney under a commission contract, an agency agreement and (or) other similar agreement, as well as on account of compensation for the expenses borne by the broker, agent or other attorney instead of a client, principal and (or) other grantor where such expenses are not subject to inclusion into the expenses of the broker, agent and (or) other attorney under contracts made. A broker's fee, commission fee or any other similar remuneration shall not pertain to said incomes;
  10)  in the form of the funds and other property received under contracts of credit and borrowing (and other similar funds or other property irrespective of the form of legalizing the borrowings, including debt securities), as well as in the form of funds and other property obtained from the settlements of such borrowings;
  11)  in the form of the property received by a Russian organization free of charge:
  -  from an organization, if the authorized (pooled) capital (fund) of the receiving party consists by over 50 per cent of the deposit of the handing over organization;
  -  from an organization, if the authorized (pooled) capital (fund) of the handing over party consists by over 50 per cent of the deposit of the receiving organization;
  -  from a natural person, if the authorized (pooled) capital (fund) of the receiving party consists by over 50 per cent of the deposit (share) of this natural person.
 In this case, the received property shall not be recognized as income for the purposes of taxation, if only in the course of one year, as of the date of its receipt said property (safe for monetary funds) is not handed over to third persons;
  12)  in the form of the funds derived in accordance with the demands of Articles 78, 79, 176 and 203 of the present Code from the budget (extra-budgetary fund);
  13)  in the form of the sums of guarantee contributions into special funds set up in conformity with the legislation of the Russian Federation, which are intended for reducing the risks of non-execution of liabilities under deals, which are obtained in the performance of the clearing activity or of an activity aimed at organizing trading in the securities market;
  14)  in the form of the property received by organizations within the framework of the purposive financing. In this case, the organizations which have received the funds of purposive financing shall be obliged to keep separate records for the incomes (expenditures) received (made) within the framework of the target financing. If no such recording is carried out by the organization which has received the funds under the purposive financing, said funds shall be regarded as those subject to taxation, as of the date of their receipt. To the funds of budgets of all levels and of extra-budgetary funds, allocated to budgetary institutions according the estimate of incomes and outlays of a budgetary institution but not used for the purpose they are intended for within a tax period or used for the purposes other that those they are intended for, there shall apply the rules of budget laws of the Russian Federation.
 To the funds of purposive financing there shall be referred the property received by the taxpayer and used by him in accordance with the purpose defined by the organization (natural person) which is the source of the purposive financing or by federal laws:
  -  in the form of the funds from the budgets of all levels and from the state extra-budgetary funds allocated to budgetary institutions in accordance with the incomes and the outlays estimate of the budgetary institutions;
  -  in the form of received grants. For the purposes of this Chapter grants shall mean monetary assets and other property, where their transfer (receipt) satisfies the following conditions:
 grants shall be provided on the gratuitous and irrevocable basis by natural persons, non-profit making organizations, including foreign and international organizations and associations according to the list of such organizations endorsed by the Government of the Russian Federation;
 grants shall be provided for implementation of specific programs in education, arts, culture, environmental protection, as well as for carrying out specific scientific research;
 grants shall be provided on the conditions determined by grantors with the obligatory submission of reports by grantees on the purposive use of grants;
  -  in the form of the investments, received when holding investment tenders (auctions) in the order established by the legislation of the Russian Federation;
  -  in the form of the investments received from foreign investors for financing the capital production-intended investments, under the condition that they are used within one calendar year from the moment of their receipt;
  -  in the form of the funds of the share partners and (or) investors accumulated on the accounts of a building organization;
  -  in the form of the funds received by a mutual insurance company from organizations who are members of the mutual insurance company;
  -  in the form of the funds, received from the Russian Fund for Fundamental Studies, from the Russian Fund of Technological Development, from the Russian Humanitarian Scientific Fund, from the Fund for Rendering Assistance to the Development of Small Businesses in the Scientific and Technological Sphere, and from the Fund for the Production of Innovations;
 in the form of the funds received for the purpose of forming the Russian Technological Development Fund, as well as other branch and inter-branch funds for financing research and development works which are registered in the procedure provided for by the Federal Law on Science and State Scientific Research Policy" in the form of non-profit organizations;
  -  in the form of the funds received by enterprises and organizations, including especially dangerous radioactive and especially dangerous nuclear works and units, from the reserves intended for guaranteeing security of said works and units at all stages of their life cycle and development in conformity with the legislation of the Russian Federation on the use of nuclear power. Said incomes shall be included in the composition of the extra-sale incomes in case the grantee has actually used such funds for other than the intended purposes, or if he has not used them for the intended purpose in the course of one year after the end of the tax period in which they were received;
  -  as the amounts of fees for the provision of aviation navigation services for aircraft flights in the air space of the Russian Federation received by the specifically empowered body charged with civil aviation affairs;
 in the form of bank insurance contributions to the fund of the insurance of deposits in accordance with the federal law on the insurance of deposits of natural persons in the banks of the Russian Federation;
  15)  in the form of the cost of the shares additionally received by the shareholder organization which are distributed among the shareholders by the decision of the general meeting in proportion to the number of shares in their ownership, or in the form of the difference between the nominal cost of the new shares received instead of the original ones, and the nominal cost of the shareholder's original shares in the placement of the shares among the shareholders in cases of an augmentation of the authorized capital of a joint-stock company (without changing the share of the shareholder's participation in this joint-stock company);
  16)  in the form of the positive difference which has emerged as a result of revaluating precious stones in cases of a change of the price lists of the settlement prices for precious stones in the established order;
  17)  in the form of the sums by which in a report (tax) period an organization's authorized (pooled) capital was reduced in accordance with the demands of the legislation of the Russian Federation;
  18)  in the form of the cost of the materials and other property, received in dismantling and pulling down of the objects withdrawn from operation in cases of their liquidation, which shall be destroyed in conformity with Article 5 of the Convention on the Prohibition of the Development, Production, Accumulation and Application of Chemical Weapons, as Well as Their Destruction, and with Part Five of the Appendix on Checking the Convention on the Prohibition of the Development, Production, Accumulation and Application of Chemical Weapons, as Well as Their Destruction;
  19)  in the form of the cost of amelioration and other objects of agricultural use (including intra-economic water supply, gas and electricity supply networks) built at the expense of the budgetary funds received by an agricultural commodity producer;
  20)  in the form of the property and (or) the rights of property, received by organizations for the state stocks of special (radioactive) raw materials and of fissionable materials of the Russian Federation from transactions with material values from the state stocks of special (radioactive) raw materials and of fissionable materials, aimed at the replenishment and the maintenance of the stocks;
  21)  in the form of the sums of the taxpayer's credit indebtedness to the budgets of different levels, written off and (or) reduced in some other way in conformity with the legislation of the Russian Federation and (or) by the decision of the Government of the Russian Federation;
  22)  in the form of equipment, received on a gratuitous basis by state and municipal educational establishments, as well as by non-state educational establishments possessing licenses for the performance of educational activity, for exercising the activities stipulated by their statutes;
  23)  in the form of the fixed assets received by organizations included into the structure of the Russian Defence Organization for Sports and Technologies (hereinafter referred to in the present Chapter as ROSTO) (if these are handed over between two or more organizations included in the structure of this Organization), used for training citizens in the military-recorded specialities, for carrying out the military-patriotic education of youth, as well as for the development of the aviation, technological and military-applied kinds of sport in conformity with the legislation of the Russian Federation;
  24)  in the form of the positive difference received from revaluation of securities in accordance with the market cost;
  25)  in the form of the sums of the replenished reserves against devaluation of securities (with the exception of the reserves whose formation caused the expenses which under Article 300 of this Code previously decreased the tax base).
  26)  in the form of funds and other property which have been received by unitary enterprises from the owners of property of these enterprises or from the bodies authorized by them;
  27)  in the form of property (including monetary assets) and (or) property rights which have been received by a religious organization in connection with committing religious ceremonies and rituals and from the sale of religious literature and articles of religious purpose;
  28)  in the form of the amounts received by universal service operators from the universal service reserve in compliance with the laws of the Russian Federation on communications.
 2. The purpose-oriented incomes (with the exception of the target incomes in the form of excisable commodities) shall not be taken into account either, when determining the tax base. To these there shall be referred the target incomes from the budget to the budget receivers and the purpose-oriented receipts for maintaining non-profit organizations and for the performance by these non-profit organizations of their authorized activity, which have arrived gratis from other organizations and (or) from natural persons, and which said receivers have used for the intended purposes. With this, taxpayers who have received said purposive earnings shall be obliged to keep separate records of incomes (expenses) received (made) within the framework of purposive earnings.
 To the above-mentioned purpose-oriented incomes for the maintenance of non-profit organizations and for the performance by the latter of their authorized activity the following shall be referred:
  1)  the entrance fees, membership fees and goal-oriented contributions and deductions paid under the laws of the Russian Federation to the public-legal professional associations, built on the principles of obligatory membership, the share participation contributions and the donations recognized as such in conformity with the Civil Code of the Russian Federation;
 1.1) targeted payments for forming the Russian Technological Development Fund, as well as other branch and inter-branch funds for financing research and development works which are registered in the procedure provided for by the Federal Law on Science and State Scientific Research Policy" in the form of non-profit organizations;
  2)  the property handed over to non-profit organizations under a will by way of succession;
  3)  the sums of financing from the federal budget, from budgets of the subjects of the Russian Federation, from local budgets, or from the budgets of state extra-budgetary funds, allocated for the performance of the authorized activity by non-profit organizations;
  4)  the funds and other property received within the framework of charitable activity;
  5)  the joint contribution of the founders of non-state pension funds;
  6)  pension contributions to non-state pension funds, if these are directed in full to the formation of the pension reserves of the nonstate pension funds;
  7)  receipts from the owners to the institutions they have established, used for the intended purpose;
  8)  the deductions of the chambers of solicitors/barristers of Russian regions for the general needs of the Federal Chamber of Solicitors/Barristers at the rates and in the manner determined by the All-Russia Congress of Solicitors/Barristers; the deductions of solicitors/barristers for the general needs of the chamber of solicitors/barristers of the relevant Russian region at the rates and in the manner determined by the annual meeting (conference) of the solicitors/barristers of the chamber of solicitors/barristers of the Russian region, and also for the maintenance of a relevant solicitors'/barristers' study, college of solicitors/barristers or solicitor/barrister bureau;
  9)  the funds which have come in to trade union organizations in conformity with the collective contracts (agreements) for the trade unions to hold socio-cultural and other events envisaged by their authorized activity;
  10)  funds used for their intended purpose which are received by the structural organizations of the Russian Defence Organization for Sports and Technologies from the Ministry of Defence of the Russian Federation and (or) from other executive power body under a general contract, as well as the target deductions from the organizations included in the structure of the Russian Defence Organization for Sports and Technologies, used in accordance with the constituent documents thereof for citizens' training in conformity with the legislation of the Russian Federation in the military-recorded specialities, for the militarypatriotic education of the youth and for the development of aviation, technological and military-applied kinds of sport.
  11)  property (including monetary assets) and (or) property rights which have been received by religious organizations for exercising their authorized activities.

Article 252. Outlays. Grouping of the Outlays


 1. For the purposes of this Chapter, the taxpayer shall reduce the received incomes by the sum of the outlays he has made (with the exception of the outlays indicated in Article 270 of the present Code).
 Recognised as outlays shall be the justified and Documented expenditures (and in the cases envisaged by Article 265 of the present Code, also the losses), made (incurred) by the taxpayer.
 Seen as justified outlays shall be the expenditures justified from an economic viewpoint whose evaluation is expressed in monetary form.
 Seen as documented outlays shall be the outgoings confirmed by the documents which are formalised in conformity with the legislation of the Russian Federation. Recognised as outlays shall be any kind of expenditures, under the condition that they are made for the performance of an activity aimed at deriving an income.
 2. Depending on their character, as well as on the conditions necessary for the performance and on the directions of the taxpayer's activity, the outlays shall be subdivided into outlays involved in production and sale, and extra-sales outlays.
 3. The specifics in qualifying the outlays recognised for the purposes of taxation, for the individual taxpayers' categories, or the outlays made in connection with special circumstances shall be established by the provisions of this Chapter.
 4. If certain expenditures may be referred on equal grounds simultaneously to several groups of outlays, the taxpayer shall have the right to decide on his own to which particular group he refers such outlays.
 5. The outlays incurred by a taxpayer which are shown in foreign currency shall be accounted in the aggregate with the outlays shown in roubles.
 The outlays incurred by a taxpayer which are shown in conventional units shall be accounted in the aggregate with the outlays shown in roubles.
 Said outlays shall be conversed by a taxpayer depending on the method of recognizing such outlays chosen for his accounting policy for the purposes of taxation in compliance with Articles 272 and 273 of this Code.
 For the purposes of this Chapter, amounts shown in the composition of taxpayers' expenditures shall not be subject to repeated inclusion in the composition thereof.

Article 253. Outlays Involved in Production and Sale


 1. The outlays involved in production and sale shall incorporate:
  1)  the outlays connected with the manufacture (output), storage and delivery of commodities, with the performance of works and rendering services, with the acquisition and (or) sale of commodities (works, services and rights of property);
  2)  the outlays on maintenance and operation, repairs and technical servicing of the fixed assets and of the other property, as well as for maintaining them in good condition (in a fit-for-operation state);
  3)  the outlays on the development of natural resources;
  4)  the outlays on scientific research and on research and development works;
  5)  the outlays on obligatory and voluntary insurance;
  6)  the other outlays involved in production and (or) sale.
 2. The outlays connected with the production and (or) with sale are subdivided into:
  1)  material outlays;
  2)  outlays on the remuneration of labour;
  3)  sums of imposed depreciation charges;
  4)  other outlays;
 3. The specifics in determining the outlays of banks, insurance institutions, non-state pension funds, professional securities marketmakers, consumer cooperation organizations and foreign organizations shall be established subject to the provisions of Articles 291, 292, 294, 296, 297, 299, 300, 307, 308, 309 and 310 of the present Code.

Article 254. Material Outlays


 1. To the material outlays are referred, in particular, the following expenditures of the taxpayer:
  1)  for the acquisition of raw materials and (or) of other materials utilised in the manufacture of commodities (in the performance of works or in rendering services) and (or) forming their base or comprising a necessary component in the manufacture of commodities (in the performance of works or in rendering services);
  2)  for the acquisition of materials utilised:
  -  for packing and other kinds of preparing the manufactured and (or) the sold commodities (including pre-sale preparation);
  -  for other production and economic needs (such as staging tests, exerting control, the maintenance and operation of the fixed assets and other similar items;
  3)  for the acquisition implements, appliances, instruments, apparatuses, laboratory equipment, overalls and other property which are not depreciable property. The cost of such property shall be fully included into the composition of material expenses as it is put into operation;
  4)  for acquisition of completing parts subject to mounting and (or) semi-products subject to additional processing by a taxpayer;
  5)  for the acquisition of fuel, water and all kinds of power expended for technological needs, for working out (including by the taxpayer himself for its own production needs) all kinds of energy and for heating the buildings, as well as the outlays on the transformation and transmission of power;
  6)  for the acquisition of the works and services of production nature performed by the outside organisations or individual businessmen, as well as for carrying out these works (for rendering services) by the taxpayer's internal structural subdivisions.
 To the works (services) of the production nature shall be referred the performance of the individual operations involved in the output (manufacture) of products, in performing works and rendering services in processing raw materials (materials), the exertion of control over the observation of the started technological processes, the technical servicing of the fixed assets and other similar works.
 To the works (services) of the production nature shall also be referred the transportation services rendered by the outside organisations (individual businessmen included) and (or) by the structural subdivisions of the taxpayer himself for shipping cargoes inside the organisation, in particular the shifting of raw materials (materials), of implements, parts, ingots and other kinds of cargoes from the basic (central) store-house to the workshops (departments) and the delivery of finished products in accordance with the terms of the contracts (agreements);
  7)  those involved in the maintenance and utilisation of the nature protection fixed assets and other property (including outlays on the maintenance and running of the purification installations, of ash-catchers, filters and other nature-protection objects, outlays on burying ecologically dangerous waste, those on buying the services of outside organisations involved in the acceptance, storage and destruction of ecologically hazardous waste, in the purification of the discharged waters, payments for the ultimately admissible ejections (dumping) of pollutant substances into the natural environment and the other similar expenses.
 2. The cost of the commodity-material values included in the material outlays shall be defined proceeding from the prices of their acquisition (not taking into account taxes, which shall be subject to deduction from, or to the inclusion in, the outlays in conformity with the present Code), including the commission fees paid to intermediary organisations, the import customs duties and collections, the outlays on transportation as well as other expenditures connected with the acquisition of commodity-material values.
 3. If the cost of the returnable containers accepted from the deliverer with the commodity-material values is included in the price of these values, from the total sum of the outlays on the acquisition thereof shall be excluded the cost of the returnable containers at the price of their probable use or sale. The cost of the non-returnable containers and packing, accepted from the deliverer with the commodity-material values, shall be included in the sum of the outlays on their acquisition.
 The containers shall be referred to as either returnable or Non-returnable in accordance with the terms of the agreement (contract) on the acquisition of the commodity-material values in question.
 4. Where a taxpayer uses as raw materials, spare parts, completing parts, semi-products and other materials outlays products of his own making, as well as where a taxpayer includes in the composition of material outlays results of his own works and services, said products and results of his own works or services shall be evaluated reasoning from the evaluation of finished products (works, services) in compliance with Article 319 of this Code.
 5. The amount of material outlays of the current month shall be decreased by the cost of the stock of inventory holdings transferred for production but not used in production as on the end of the month. Valuation of such inventory holdings should correspond to valuation thereof, when writing them off.
 6. The sum of the material outlays shall be reduced by the cost of returnable waste. For the purposes of the present Chapter, seen as returnable waste shall be the residuals of the raw materials (materials), semi-products, heat-carriers and other kinds of material resources which have accumulated in the course of the manufacture of the commodities (of the performance of works or of rendering services) and which have partially lost the consumer properties of the original resources (their chemical or physical properties) and by force of this are utilised with higher outlays (with a lower output of products), or which are not utilised for their direct purpose.
 Not referred to returnable waste shall be the residuals of the commodity-material values, which are handed over in accordance with the technological process to the other subdivisions as fully valuable raw materials (materials) for the output of the other kind of commodities (works, services), as well as the by-products (associated products) obtained as a result of carrying out the technological process.
 Returnable waste shall be evaluated in this order:
  1)  at the reduced price of the original material resource (at the price of the probable utilisation), if these wastes may be used for the basic or auxiliary production but with higher outlays (with a lower output of the finished products);
  2)  at the price of sale, if these products are sold on the side.
 7. For the purposes of taxation, to the material outlays shall be equated:
  1)  the outlays on the reclamation of the lands and on the other nature-protection measures, unless otherwise established by Article 261 of this Code;
  2)  the losses from the shortages and (or) spoilage during the storage and the transportation of the commodity-material values within the limit of the norms of natural losses, approved in the order established by the Government of the Russian Federation;
  3)  the technological losses during production and transportation;
  4)  the outlays involved in the preparatory mining works in the extraction of minerals, for the operational stripping works in quarries and for cutting works in the underground ore extraction mines within the boundaries of the mining plot, allotted to the ore-mining enterprises.
 8. When determining the amount of material expenditures in writing off the raw and other materials utilised in the output (manufacture) of commodities (in the performance of works or in rendering services), in conformity with the accounting policy accepted by the given organisation for the purposes of taxation, one of the following methods for the evaluation of the said raw and other materials shall be applied:
  -  the method of evaluation in accordance with the prime cost of a unit of the stocks;
  -  the method of evaluation in accordance with average cost;
  -  the method of evaluation in accordance with the cost of the acquisitions which are the first chronologically (FIFO);
  -  the method of evaluation in accordance with the cost of the acquisitions which are the last chronologically (LIFO).

Article 255. Outlays on the Remuneration of Labour


 In the taxpayer's outlays on the remuneration of labour shall be included any calculations for the workers in the form of money and (or) in kind, stimulating the calculations and allowances, the compensatory allowances in connection with the work regime or labour conditions, the bonuses and single-time incentive payments, the outlays involved in the maintenance of these workers stipulated by the rules of the laws of the Russian Federation and the labour agreements (contracts) and (or) in the collective agreements.
 For the purposes of this Chapter, to the outlays on the remuneration of labour shall be referred, in particular:
  1)  the sums calculated in accordance with the tariff rates, official salaries, piece-work payment rates, or percentages of the receipts in accordance with the forms and systems of the remuneration of labour accepted in the given taxpayer;
  2)  the calculations of an incentive kind, including bonuses for high production results, mark-ups to the tariff rates and salaries for the professional skills, for achieving high results in the work and for the other similar indices;
  3)  the calculations of an incentive and (or) compensatory nature, connected with the work regime and the conditions of labour, including mark-ups to the tariff rates and salaries for the night-time work and for the multi-shift work, for combining trades, for expansion of the serviced zones, for the performance of work under difficult, dangerous and particularly dangerous conditions of labour, for overtime work and work on days off and on holidays, effected in conformity with the legislation of the Russian Federation;
  4)  the cost of the communal services, meals and products given over to the workers gratis in conformity with the legislation of the Russian Federation, and the cost of the living premises granted to the taxpayer's workers free of charge in conformity with the relevant procedure established by the legislation of the Russian Federation (the sums of monetary compensation for non-granting of living premises, communal and other similar services free of charge);
  5)  the cost of things issued to workers free of charge in conformity with the legislation of the Russian Federation (including uniforms and outfits) which are left in their personal permanent use (or the sum of the privileges in connection with selling these things at a reduced price);
  6)  the sum of the average earnings to workers, which are preserved during the time spent in the performance of the state and (or) public duties, and in the other cases stipulated by the legislation of the Russian legislation on labour;
  7)  the outlays on the remuneration of labour preserved for the workers during time spent on leave, envisaged by the legislation of the Russian Federation, the outlays on the fares of the workers and of the dependents of the workers, to the place of their spending leave on the territory of the Russian Federation and back (including the expenditures on the payment for carrying the luggage of the workers of organisations situated in the areas of the Far North and in the localities equated to them) in accordance with the procedure envisaged by the legislation of the Russian Federation, an additional payment to the underaged for shorter working hours, outlays on the payment for breaks in the work of mothers for feeding their babies, as well as outlays on the remuneration of the time spent in undergoing medical examinations;
  8)  the monetary compensations for unused leave in compliance with the labour laws of the Russian Federation;
  9)  the allowances for the workers released in connection with the reorganisation or liquidation of the taxpayer, with the reduction of the labour force or of the number of workers on the taxpayer's staff;
  10)  the lump-sum awards for a long work record (the mark-ups for a long work record in the particular speciality) in conformity with the legislation of the Russian Federation;
  11)  the extra payments due to the regional regulation of the remuneration of labour, including allowances in accordance with the regional coefficients and the coefficients for work under hazardous natural-climatic conditions, effected in conformity with the legislation of the Russian Federation;
  12)  the extra payments envisaged by the legislation of the Russian Federation for an uninterrupted record of work in the regions of the Extreme North and in the localities equated to them, in the areas of the European North and in other regions with hazardous natural-climatic conditions;
  13)  the outlays on the remuneration of labour preserved in conformity with the legislation of the Russian Federation over the time of educational leave, granted to the taxpayer's workers;
  14)  the outlays on the remuneration of labour for the time of compelled inactivity or for the time when lower-paid work is performed in the cases envisaged by the legislation of the Russian Federation;
  15)  the outlays on an additional payment up to the actual earnings in cases of the temporary loss of labour capacity established by the legislation of the Russian Federation;
  16)  the sums of the employers' payments (contributions) under the obligatory insurance contracts, as well as the sums of the employers' payments (contributions) under the contracts for the voluntary insurance (under contracts of non-state pension security) concluded in favour of workers with insurance organisations (with non-state pension funds) which possess the licences issued in conformity with the legislation of the Russian Federation for carrying out the corresponding kinds of activity in the Russian Federation.
 In the cases of voluntary insurance (of non-state pension security), the said sums shall be referred to the outlays on the remuneration of labour under the contracts:
  -  of long-term life insurance, if such contracts are concluded for a term of not less than five years and do not envisage insurance payments in the course of these five years, including in the form of rent and (or) of annuities (with the exception of insurance payments envisaged in case of the death of the insured person) in favour of the insured person;
  -  of the pension insurance and (or) of the non-state pension security. In this case, the contracts of the pension insurance and (or) of the non-state pension security shall envisage the payment of pensions (for a life term) only after the insured person has achieved the pension grounds envisaged by the legislation of the Russian Federation which give him the right to assignment of a state pension;
  -  of the voluntary personal insurance of workers, concluded for a term of no less than one year, which envisages coverage by the insurers of the insured workers' medical expenditures;
  -  of the voluntary personal insurance, concluded exclusively against the death of the insured person or against the loss by the insured person of his labour capacity in connection with the discharge of his labour duties.
 The aggregate sum of the contributions (the payments) of the employers, made under the contracts of the long-term life insurance of workers and (or) of the non-state pension security of workers, shall be recorded for the purposes of taxation in an amount not exceeding 12 per cent from the sum of the outlays on the remuneration of labour.
 If the essential terms of the contract are changed and (or) if the term of operation of a long-term life insurance contract, of a pension insurance contract and (or) of a contract of the non-state pension security is reduced, or if they are cancelled, the employer's contributions made under such contracts, which have been earlier included into the composition of the outlays, shall be recognised as subject to taxation as from the moment of the change of the essential terms of the said contracts and (or) of the reduction of the term of operation of these contracts or of their cancellation (with the exception of cases of the pre-schedule cancellation of the contract in connection with force majeure circumstances, that is, extraordinary and inadvertent circumstances).
 Contributions on the contracts of voluntary personal insurance, envisaging the insurer's coverage of the insured workers' medical expenditures, shall be included in the composition of the outlays in an amount not exceeding three per cent of the sum of the outlays on the remuneration of labour.
 The contributions on the contracts of voluntary personal insurance, concluded exclusively against the death of the insured person or against the loss by the insured worker of his labour capacity in connection with the discharge of his labour duties, shall be included in the composition of the outlays in an amount not exceeding ten thousand roubles a year per one insured worker;
 When calculating the maximum amount of payments (contributions) under this Subitem, the amount of payments (contributions) provided for by this Subitem shall not be included into the outlays on labour wages.
  17)  the sums calculated in the amount of one tariff rate or salary (if the work is carried out by the hour), which are envisaged by the collective agreements, for the days spent en route from the place of location of the organisation (from the gathering point) to the place of work and back, envisaged by the work schedule by the hour, as well as for the days of the workers' detainment while en route because of weather conditions;
  18)  the sums calculated for the performed work to the natural persons attracted for the work for the taxpayer in accordance with special agreements on the supply of the work force with state organisations;
  19)  In the cases provided for by the laws of the Russian Federation the sums calculated at the principal place of work to the workers, the managers or the specialists of taxpayer during their training away from work in the system of raising the qualifications or of the re-training of the personnel;
  20)  the outlays on the remuneration of labour of workers who are blood donors for the days of their medical examination, of the blood taking and of the rest, granted after every day after blood taking;
  21)  the outlays on the remuneration of labour of workers who are not on the taxpaying organisation's staff, for the fulfilment by them of works under the concluded contracts of civil-legal nature (including turnkey contracts), with the exception of the remuneration of labour under contracts of civil-legal nature concluded with individual businessmen;
  22)  the allowances to servicemen undergoing military service at state unitary enterprises and in the building organisations of the federal executive power bodies in which the legislation of the Russian Federation has envisaged the military service, and to the rank and file servicemen and the commanding staff of the internal affairs bodies, stipulated by the federal laws, by the laws on the status of servicemen and on the institutions and bodies engaged in the execution of criminal punishments in the form of deprivation of freedom;
  23)  additional payments to invalids, stipulated by the legislation of the Russian Federation;
  24)  expenditure in the form of allocations to the reserve for forthcoming payment of workers' leaves and (or) to the reserve for paying annual long-service bonuses made in compliance with Article 324.1 of this Code.
  25)  other kinds of outlays made in the worker's favour, envisaged by the labour agreement and (or) by collective agreement.

Article 256. Depreciated Property


 1. Recognised as depreciated property for the purposes of this Chapter shall be property, (if not otherwise provided for by this Chapter), the results of intellectual activity and the other objects of intellectual property belonging to the taxpayer by right of ownership and used by him for the purpose of deriving an income whose amount is amortised by imposing depreciation charges. Recognized as depreciable property there shall be the property with the term of beneficial use over 12 months and with the initial cost thereof over 10 000 roubles.
 The depreciated property received by a unitary enterprise from the owner of the property of the unitary enterprise into operative management or into economic management, shall be subject to depreciation at the given unitary enterprise in accordance with the procedure established by the present Chapter.
 2. Not subject to depreciation shall be the land and the other nature utilisation objects (water, mineral wealth and other natural resources), and also the material production stocks, commodities, incomplete capital construction projects, securities and financial instruments of futures deals (including forward and futures contracts and option contracts).
 Not subject to depreciation there shall be the following types of depreciable property:
  1)  the property of budgetary organizations, with the exception of the property, acquired in connection with the performance of business activity and used for the performance of such activity;
  2)  the property of non-profit organizations gained in the form of purposive receipts or acquired at the expense of purposive receipts and used for carrying out non-profit making activity;
  3)  the property acquired (created) with the use of budgetary funds. Said rule shall not apply to the property gained by a taxpayer as result of privatization;
  4)  the objects of outdoor improvement (the objects of forest economy, road maintenance economy, whose construction has been carried out with the use of the sources of budgetary and other similar purposive financing, specialised installations for navigational situations) and other similar objects;
  5)  productive livestock, buffalos, bullocks, yaks, deer and other wild animals (with the exception of draught animals);
  6)  acquired publications (books, booklets and other similar objects) and works of art. With this, the cost of acquired publications and other similar objects, safe for works of art, shall be included into the composition of other outlays connected with production and sale in the full amount at the moment of acquiring said objects;
  7)  property acquired (created) at the expense of the funds which have been received in compliance with Subitems 14, 19, 22 and 23 of Item 1 of Article 251 of this Code, as well as the property mentioned in Subitems 6 and 7 of Item 1 of Article 251 of this Code;
  8)  acquired rights to the results of intellectual activity and other objects of intellectual property, where under the contract concerning the acquisition of said rights payment shall be made by periodical installments within the whole term of this contract's validity.
 3. For the purposes of this Chapter the following fixed assets shall be excluded from the composition of depreciable property:
  -  those transferred (received) under contracts for gratuitous use;
  -  those temporary closed down by decision of the leadership of an organization for a term exceeding three months;
  -  those being reconstructed or modernized by decision of the leadership of an organization within a term exceeding 12 months.
 When re-activating an object belonging to fixed assets, the depreciation with regard to it shall be calculated in the procedure which has been effective prior to the moment of re-activation thereof and the term of beneficial use thereof shall be extended by the period of temporary closing-down the object belonging to the fixed assets.

Article 257. Procedure for Determining the Cost of the Depreciated Property


 1. Seen as fixed assets for the purposes of the present Chapter shall be the part of the property which is applied as a labour facility for the manufacture and sale of commodities (for the performance of works and for rendering services), or for the management of the organisation.
 The original cost of a fixed asset shall be defined as the sum of the outlays on its acquisition (and in the event of acquiring a fixed asset by a taxpayer free of charge it shall be defined as the valuation cost of such property in compliance with Item 8 of Article 250 of this Code, its erection, manufacturing, delivery and bringing to the condition of fitness for use, safe for the amount of taxes subject to deduction and accounted in the composition of outlays in compliance of this Code).
 Recognized as the original cost of the property, which is the object of leasing, there shall be the sum of the leasing party's outlays on its acquisition, construction, delivery, manufacturing and bringing to the condition of fitness for use, with the exception of the sums of taxes subject to deduction and recorded in the composition of the outlays in conformity with the present Code.
 The replacement value of the depreciated fixed assets, acquired (created) before the present Chapter is put into force, shall be defined as their initial cost with an account for the revaluations, performed before the date of enforcement of the present Chapter.
 When defining the replacement value of the depreciated fixed assets, for the purposes of the present Chapter shall be taken into account the revaluation of the fixed assets, effected by the tax payer's decision as in the state on January 1, 2002 and reflected in the tax payer's business accounting after January 1, 2002. This revaluation shall be accepted for the purposes of taxation in an amount, not exceeding 30 per cent of the replacement value of the corresponding objects of fixed assets, reflected in the tax payer's business accounting as in the state on January 1, 2001 (with an account for the revaluation as in the state on January 1, 2001, made by the tax payer's decision and reflected in his business accounting in 2001). In this case, the size of the revaluation (of the devaluation) as in the state on January 1, 2002, reflected by the tax payer in 2002, shall not be recognized as the tax payer's income (outlays) for the purposes of taxation. In a similar order, for the purposes of taxation shall be accepted the corresponding revaluation of the sums of depreciation.
 When the tax payer carries out in the subsequent reporting (tax) periods after the enforcement of the present Chapter the revaluation (devaluation) of the cost of the fixed assets objects by the market cost, the positive (negative) sum of such revaluation shall not be recognized as an income (as the outlays), taken into account for the purposes of taxation, and shall not be accepted in defining the replacement value of the depreciated property and in computing the depreciation charges, taken into account for the purposes of taxation in conformity with the present Chapter.
 The residual cost of the fixed assets, introduced before the enforcement of the present Chapter, shall be defined as the difference between the replacement value of such fixed assets and the sum of depreciation, determined in the order, laid down in the fifth paragraph of the present Item.
 The residual cost of the fixed assets put into operation upon entry of this Chapter into force shall be defined as a difference between their initial cost and the amount of depreciation accrued for the period of their depreciation.
 When the taxpayer uses the objects of the fixed assets of his own manufacture, the original cost of such objects shall be defined as the cost of finished products calculated in compliance with Item 2 of Article 319 of this Code increased by the sum of the corresponding excise duties on the fixed assets which are excisable commodities.
 2. The original cost of the fixed assets shall be changed in the cases of completing the construction and the equipment, of the reconstruction, modernisation, technical re-equipment and partial liquidation of the corresponding objects, and also on other similar grounds.
 Referred to the works involved in completing the construction and equipment, and also in the reconstruction and modernisation shall be the works caused by a change in the technological or official purpose of the equipment, building, structure or other object of the depreciated fixed assets, by the increased loads and (or) by the other new properties.
 For the purposes of this Chapter, to the reconstruction shall be referred the restructuring of the existing fixed assets objects in connection with the improvement of production and with the higher technical and economic indices carried out according to the project for the reconstruction of the fixed assets, aimed at an expansion of the production capacities, raising the standard and changing the range of the products.
 To the technical re-equipment shall be referred a complex of measures aimed at raising the technical and economic indices of the fixed assets or of their individual parts on the basis of the introduction of advanced hardware and technology, of the mechanisation and automation of the production, of the modernisation and replacement of the outdated and physically worn out equipment with new and more productive versions.
 3. For the purposes of the present Chapter, recognised as non-material assets shall be the results of intellectual activity and other objects of intellectual property, acquired and (or) created by the taxpayer (or the exclusive rights to them), which are used in the output of products (in the performance of works or in rendering services) or for the organisation's managerial needs in the course of a long period of time (over twelve months).
 For a non-material asset to be recognised, it shall possess the capability to bring economic gain (income) to the taxpayer and properly formalised documents confirming the existence of the non-material asset itself and (or) the taxpayer's possession of the exclusive right to the results of the intellectual activity (including the patents, certificates and other protective documents, and a contract on the cession /acquisition/ of the patent or trade mark).
 To the non-material assets are referred in particular:
  1)  the exclusive right of the patent holder to an invention, an industrial sample or a useful model;
  2)  the exclusive right of the author and other rightholders to the use of a computer programme or of a data base;
  3)  the exclusive right of the author or other rightholders to the use of the topology of the integral microschemes;
  4)  the exclusive right to a trade mark, a service mark, to the name of the place of commodity origin and company name;
  5)  the patent holder's exclusive right to selection achievements;
  6)  the possession of know-how, a secret formula or process, or of information concerning industrial, commercial or scientific experience.
 The original cost of the depreciated non-material assets is defined as the sum of the outlays on their acquisition (creation) and on bringing them up to a state in which they are fit to use, with the exception of the sums of the taxes recorded in the composition of the outlays in conformity with the present Code.
 The cost of the non-material assets created by the organisation itself shall be defined as the sum of the actual expenditures on their creation and manufacture (including material outlays, outlays on the remuneration of labour and on the services of the outside organisations, and the patent duties connected with receiving patents and certificates), with the exception of the sums of the taxes recorded in the composition of the outlays in conformity with the present Code.
 To non-material assets shall not be referred:
  1)  scientific-research, research and development and technological works which have produced no positive result;
  2)  the intellectual and business qualities of the organisation's workers, their qualifications and labour capacity.

Article 258. Depreciation Groups. Specifics of Including the Depreciated Property into the Composition of the Depreciation Groups


 1. The depreciated property is divided into depreciation groups in accordance with the term of its beneficial use. Recognised as the term of beneficial use is the period in the course of which an object of the fixed assets or an object of non-material assets serves to the purposes of the taxpayer's activity. The term of beneficial use shall be defined by the taxpayer on his own as on the date of putting the given object of the depreciated property into operation in conformity with the propositions of the present Article and subject of the classification of the fixed assets endorsed by the Government of the Russian Federation.
 A taxpayer shall be entitled to extend the term of beneficial use of an object of the fixed assets after the date of its putting into operation, where after the reconstruction, modernization or technical re-equipment of such object the term of beneficial use thereof has increased. With this, the term of beneficial use of fixed assets may be extended within the limits of the time period established for the depreciation group which such fixed asset was previously included in.
 If the term of beneficial use of an object has not increased after the reconstruction, modernization or technical re-equipment of an object belonging to fixed assets the taxpayer, when calculating depreciation thereof, shall take into account the remaining period of its beneficial use.
 2. The term of beneficial use of an object of non-material assets shall be defined proceeding from the term of operation of the patent or of the certificate, and (or) from the other restrictions of the terms of use of the objects of intellectual property in conformity with the legislation of the Russian Federation or with the applicable legislation of a foreign state, and also proceeding from the term of beneficial use of non-material assets, substantiated by the corresponding treaties. The depreciation norms for the non-material assets, for which it is impossible to define the term of beneficial use of an object of non-material assets, shall be established as ten years (but shall be no longer than the term of the taxpayer's activity).
 3. The depreciated fixed assets (property) shall be divided into the following depreciation groups:
  -  the first group - all the short-life property with a term of beneficial use from 1 to 2 years inclusive;
  -  the second group - property with a term of beneficial use of over 2 years and up to 3 years inclusive;
  -  the third group - property with a term of beneficial use from 3 to 5 years inclusive;
  -  the fourth group - property with a term of beneficial use from 5 to 7 years inclusive;
  -  the fifth group - property with a term of beneficial use from 7 to 10 years inclusive;
  -  the sixth group - property with a term of beneficial use from 10 to 15 years inclusive;
  -  the seventh group - property with a term of beneficial use from 15 to 20 years inclusive;
  -  the eighth group - property with a term of beneficial use from 20 to 25 years inclusive;
  -  the ninth group - property with a term of beneficial use from 25 to 30 years inclusive;
  -  the tenth group - property with a term of beneficial use of over 30 years.
 4. The classification of the fixed assets, divided into the depreciation groups, shall be endorsed by the Government of the Russian Federation.
 5. For those kinds of fixed assets which are not indicated in the depreciation groups, the term of beneficial use shall be fixed by the tax payer in conformity with the technical conditions or with the recommendations of the manufacturer organisations.
 6. For the purposes of this Chapter, the depreciated property shall be put onto the records in accordance with their original cost, defined in conformity with Article 257 of the present Code, if not otherwise provide for by this Chapter.
 7. Property received (handed over) into financial rent under a contract of financial rent (under a leasing contract, shall be included into the corresponding depreciation group by the party, which shall record the given property in accordance with the terms of the contract of financial rent (of the contact of leasing).
 8. The fixed assets, the rights to which are subject to state registration in conformity with the legislation of the Russian Federation, shall be included in the composition of the corresponding depreciation group as from the moment of the documentarily confirmed fact of submitting the documents for the registration of the above-said rights.

Article 259. Methods and Procedure for Calculating the Sums of Depreciation


 1. For the purposes of the present Chapter, the taxpayer shall calculate the depreciation using one of the following methods, while taking into account the specifics envisaged by this Chapter:
  1)  the linear method;
  2)  the non-linear method.
 2. The sum of depreciation for the purposes of taxation shall be defined by taxpayers every month, in accordance with the procedure established by the present Article. The depreciation shall be calculated separately for every object of the depreciated property.
 Depreciation with regard to an object of depreciable property shall be accrued beginning from the first day of the month next following the month when this object was put into operation.
 Charging depreciation with regard to an object of depreciable property shall be terminated beginning from the first day of the month next following the month when the cost of such object was completely written off or when this object was excluded from the composition of the depreciable property of a taxpayer for any reasons.
 3. The taxpayer shall apply the linear method for the calculation of the depreciated property towards the buildings, structures and transmission appliances, included into the eighth to tenth depreciation groups, regardless of the deadline for putting these objects into operation.
 The taxpayer shall have the right to apply to the rest of the fixed assets any one of the methods presented in Item 1 of this Article.
 The method of calculating the depreciation selected by a taxpayer may not be changed within the entire period of calculating depreciation for an object of depreciable property.
 The calculation of the depreciation with respect to an object of the depreciated property shall be effected in accordance with the depreciation norm established for the given object proceeding from its term of beneficial use.
 4. When applying the linear method, the sum of the depreciation, calculated with respect to the object of the depreciated property for one month, shall be defined as the product of multiplying its original (replacement) cost by the depreciation norm established for the given object.
 When using the linear method, the depreciation norm for every object of the depreciated property shall be defined by the formula:
 K = [1/n] X 100%,
 where K is the depreciation norm in percentages of the original (replacement) cost of the object of the depreciated property, and
 n is the term of beneficial use of the given object of the depreciated property, expressed in months.
 5. When using the non-linear method, the sum of the depreciation, calculated for one month with respect to the object of the depreciated property, shall be defined as the product of the residual cost of the object of the depreciated property, multiplied by the depreciation norm fixed for the given object.
 When using the non-linear method, the depreciation norm of the object of the depreciated property shall be defined by the formula:
 K = [2/n] X 100%,
 where K is the depreciation norm in percentages of the residual cost applied towards the given object of the depreciated property, and
 n is the term of beneficial use of the given object of the depreciated property, expressed in months.
 Beginning with the month next to the month in which the residual cost of the object of the depreciated property reaches 20 per cent of the original (replacement) cost of this object, the depreciation for this object shall be calculated in the following order:
  1)  the residual cost of the object of the depreciated property shall be fixed for the purposes of calculating the depreciation as its basic cost for further calculations;
  2)  the sum of the depreciation being calculated for one month with respect to the given object of the depreciated property shall be defined by dividing the basic cost of the given object by the number of months left until the expiry of the term of beneficial use of the given object.
 6. If in the course of a certain calendar month the organisation was instituted, liquidated, reorganised or transformed in any other way, so that in conformity with Article 55 of the present Code the tax period for it begins or ends before the end of the calendar month, the depreciation shall be calculated with account taken of the following specifics:
  1)  no depreciation shall be calculated by the liquidated organisation from the first day of the month in which the liquidation is completed, and by the reorganised organisation - from the first day of the month in which the reorganisation is completed in the established order;
  2)  the depreciation shall be calculated by the instituted organisation, emerging as a result of the reorganisation, as from the first day of the month next to the month in which its state registration was effected.
 The provisions of this Item shall not be spread to organisationswhich change their legal organisational form.
 7. With respect to the depreciated fixed assets used for work under the conditions of an aggressive environment and (or) of a rigid shift schedule, the taxpayer shall have the right to apply to the basic depreciation norm a special coefficient, which shall not be higher than 2. For the depreciated fixed assets which are an object of a contract of financial rent (of a contract of leasing), the taxpayer, who has a fixed asset which shall be accounted under the terms and conditions of a contract of financial rent (of a contract of leasing), shall have the right to apply to the basic depreciation norm the special coefficient, which shall not be higher than 3. The given provisions shall not be spread to the fixed assets referred to the first, second and third depreciation groups if the depreciation for the given fixed assets is calculated using the non-linear method.
 The taxpayers who use the depreciated fixed assets for the performance of work under the conditions of an agressive environment and (or) of a rigid shift schedule, shall have the right to apply the special coefficient mentioned in this Chapter only when computing the depreciation with respect to the indicated fixed assets. For the purposes of this Chapter, seen as an aggressive environment shall be the aggregate of the natural and (or) artificial factors, whose impact is responsible for a higher wear and tear (ageing) of the fixed assets in the course of their operation). To the work in an aggressive environment shall also be equated the fixed assets being in direct contact with the explosion or fire-hazardous, toxic or other kind of aggressive technological environment, which may serve as a cause (source) of an emergency situation.
 Taxpayers which are agricultural organizations of industrial type (battery farms, cattle-breeding complex farms, beast farms, hothouse complex farms) shall be entitled in respect of their own fixed assets to apply to the basic depreciation norm, chosen independently subject to the provisions of this Chapter, a special coefficient of 2 at most.
 8. The taxpayers which have handed over (received) the fixed assets that are the object of a contract of leasing concluded before the present Chapter was put into operation shall have the right to calculate the depreciation for this property using the methods and the norms existing at the moment of handing over (receiving) the property, and also applying a special coefficient of not higher than 3.
 9. For passenger cars and passenger minibuses with the original cost, respectively, of over 300,000 roubles and 400,000 roubles, the basic depreciation norm shall be applied with the special coefficient of 0.5.
 The organisations which have received (transferred) the above passenger cars and passenger minibuses into leasing shall include this property in the composition of the corresponding depreciation group and shall apply the basic depreciation norm (subject to the coefficient applied by a taxpayer for such property) with a special coefficient of 0.5.
 10. The calculation of the depreciation according to the depreciation norms which are lower than those established by the present Chapter shall be admissible by the decision of the head of the taxpaying organisation confirmed in the accounting policy for the purposes of taxation. The reduced depreciation norms may be applied only as from the start of the tax period and throughout the entire tax period.
 11. In the sale of the depreciated property by taxpayers who have been applying the reduced depreciation norms, the tax base shall not be recalculated by the sum of the undercalculated depreciation against the norms envisaged by the present Article for the purposes of taxation.
 12. An organisation acquiring the used objects of the fixed assets shall have the right to determine the depreciation norm for this property, taking into account the term of its beneficial use, reduced by the number of years (months) over which the given property was operated by its previous owners.
 If the term of actual use of the given fixed asset by previous owners is equal to or exceeds the term of beneficial use thereof determined on the basis of the classification of fixed assets endorsed by the Government of the Russian Federation in compliance with this Chapter, the taxpayer shall be entitled to determine independently the term of beneficial use of this fixed asset subject to the accident prevention requirements and other factors.

Article 260. Outlays on the Repairs of Fixed Assets


 1. The outlays on the repairs of the fixed assets, made by a tax payer, shall be considered as other outlays and shall be recognized for taxation purposes in the accounting (tax) period, in which they were effected, in the amount of actual expenses.
 2. The provisions of the present Article shall also apply towards the outlays of the lessee of the depreciated fixed assets, if the contract (agreement) concluded between the lease-holder and the lease-giver does not stipulate the recompense of these outlays.
 3. Taxpayers shall be entitled for ensuring the even inclusion of outlays on the repairs of fixed assets in two and more tax periods to create reserves for forthcoming repairs of fixed assets in the procedure established by Article 324 of this Code.

Article 261. Outlays on the Development of Natural Resources


 1. For the purposes of the present Chapter, recognised as outlays on the development of natural resources shall be the taxpayer's expenditures on the geological studies of the earth's bowels, on prospecting for commercial minerals and on the performance of preparatory works.
 To the outlays on the development of natural resources shall be referred, in particular:
  -  outlays made on the search for and on an assessment of the deposits of commercial minerals (including the audit of the stocks), on prospecting for commercial minerals and (or) on the hydrogeological investigations carried out on the plot of the earth's bowels in accordance with the licences or other permits of authorized bodies obtained in the established order, as well as outlays on the acquisition of the necessary geological and other kinds of information from third persons, including from state bodies;
  -  the outlays on preparing the territory for carrying out the mining, construction and other works in conformity with the established demands made on the safety and protection of the lands, mineral wealth and the other natural resources, and of the natural environment, including on the construction of temporary approach lines and roads for the transportation of the extracted mining rock, useful minerals and wastes, and on preparing the sites for erecting the corresponding structures and for the preservation of the fertile soil layer intended for the subsequent reclamation of the lands and for the storage of the extracted mining rock, commercial minerals and the wastes;
  -  the outlays on the recompense of the complex damage inflicted upon the natural resources by the land users in the process of the construction and operation of the objects, as well as on the compensation of the losses caused to agricultural production by withdrawal of land for needs not connected with agricultural production and by the destruction and spoilage of deer pastures. To these outlays shall also be referred the compensations envisaged by the contracts (agreements) with local self-government bodies and (or) with the tribal and family communes of indigenous small-numbered peoples, concluded by these land users.
 2. The outlays on the development of natural resources made after the present Chapter is put into operation shall be included in the composition of the other outlays in conformity with the present Chapter, if the source of their financing is not the budgetary funds and (or) the resources of the state extra-budgetary funds.
 The outlays on the development of natural resources mentioned in Item 1 of the present Article shall be recorded in the order stipulated by Article 325 of the present Code. When effecting the outlays on the development of natural resources concerning several plots of the earth's bowels, the said outlays shall be recorded separately for every plot of the bowels in the part defined by the taxpayer in accordance with the accounting policy he has accepted for taxation purposes. The said outlays shall be recognised for taxation purposes as from the first day of the month next to the month in which the given works (work stages) were completed, and shall be included in the composition of the other outlays in the following procedure:
 the outlays stipulated by Paragraph Three of Item 1 of this Article shall be evenly included into the composition of expenditure within 12 months;
 the outlays provided for by Paragraphs Four and Five of Item 1 of this Article shall be evenly included into the composition of expenditure within five years but within no longer term than the period of operation thereof.
 3. If outlays on the development of natural resources for the corresponding plot of the earth's bowels have proved to be futile, the said outlays shall be recognised for the purposes of taxation as from the first day of the month next to the month in which the taxpayer informed the federal body for the management of the state stocks of mineral wealth or its territorial subdivision about the termination of further geological search, geological prospecting and other kind of works on this plot because of their uselessness.
 Recognised as futile shall be the geological search, geological prospecting and other works by the results of which the taxpayer has adopted the decision on stopping further works on the corresponding part of the plot of the earth's bowels because of the lack of prospect for finding deposits of commercial minerals or in connection with the impossibility or the unfeasibility of building and (or) of operating underground structures not involved in the extraction of useful minerals. The procedure stipulated by the present Item shall be applied to the outlays on the development of the natural resources referred to the part of the territory (of the water area) indicated in the corresponding licence. The taxpayer is obliged to keep a separate record on the corresponding part of the territory (of the water area).
 The above outlays shall be included in the composition of the other outlays in the procedure provided for by Item 2 of this Article.
 4. The procedure for recognising the outlays on the development of natural resources for the purposes of taxation envisaged by the present Article shall also be applied to the outlays on building (boring) prospecting wells in the oil and gas fields which have proved to be unproductive, on carrying out a complex of geological works and tests with the use of this well, and also on the subsequent liquidation of this well. Such procedure shall be applied by the taxpayer, irrespective of whether he goes on with or stops further works on the corresponding plot of the earth's bowels after the liquidation of the unproductive well, under the condition that the outlays on this well are recorded separately. The outlays made on the unproductive well shall be recognised for taxation purposes evenly in the course of twelve months, beginning with the first day of the month next to the month in which this well was liquidated in the established order as not having fulfilled its purpose.
 The decision on recognising the corresponding well as unproductive shall be taken by the taxpayer once and for all, and shall not be subject to subsequent change. The taxpayer shall inform the tax body at the place of his recording of the decision adopted with respect to every well not later than the ultimate date fixed by the present Chapter for submitting the tax declaration for the reporting (tax) period into which he has actually included the outlays (part of such outlays) on the well into the composition of the other outlays.
 5. The outlays on useless works for the development of natural resources shall not be included in the composition of outlays for the purposes of taxation, if in the course of five years before the moment when the rights to the geological study of the bowels, to the prospecting for and the extraction of useful minerals, or to some other use of the plot of the earth's bowels are granted to the taxpayer, similar kind of works have already been performed on this plot. The given provision shall not be applied if the said works were carried out on the basis of the principally different technology and (or) with respect to different useful minerals.
 6. The outlays on the acquisition of works (services) of geological and other kinds of information from third persons, and likewise from state bodies, as well as outlays on a independent performance of the works aimed at the development of natural resources shall be recorded for the purposes of taxation in the amount of actual expenses.

Article 262. Outlays on Scientific Studies and (or) on Research and Development Works


 1. The outlays involved in the creation of new or in the improvement of already existing products (commodities, works and services), in particular, outlays on inventions, as well as outlays on forming the Russian Technological Development Fund and other branch and inter-branch funds for financing scientific studies and research and development works registered in the procedure provided for by the Federal Law on Science and State Scientific Research Policy shall be recognized as outlays on scientific studies and (or) on research and development works.
 2. A taxpayer's outlays on scientific studies and (or) research and development works relating to the development of new products (goods, works and services) or to the improvement of those being put out, especially the outlays on inventions borne by him independently or jointly with other organizations (in the amount corresponding to his share of expenditure), as well as under the contracts in which he acts as a customer with regard to such studies or works, shall be recognized for the purposes of taxation upon the completion of these scientific studies or research and development works (upon completion of individual stages of works) and signing by the parties of an acceptance certificate in the procedure provided for by this Article.
 The taxpayer shall evenly include the said outlays in the composition of the other outlays in the course of five years, under the condition that these studies and works are used in the production and (or) sale of commodities (in the performance of works or in rendering services) as from the first day of the month next to the month in which these studies (individual stages of research) were completed.
 The taxpayer's outlays on scientific studies and (or) on research and development works, aimed at the creation of new or at an improvement of already applied technologies, or at the creation of new kinds of raw and other materials, which have not produced any positive result, shall also be included in the composition of other outlays evenly in the course of three years in an amount not exceeding 70 per cent of the actually incurred expenses, in accordance with the order envisaged by the present Item.
 3. The outlays of a taxpayer on scientific studies and (or) research and development works in the form of allocations to the Russian Technological Development Fund, as well as of other branch and inter-branch funds for financing scientific studies and research and development works registered in the procedure provided for by the Federal Law on Science and State Scientific Research Policy shall be recognized for the purposes of taxation within the limits of 0.5 per cent of the incomes (gross receipt) of the taxpayer.
 The operation of Paragraph One of this Item shall not extend to the outlays of branch and inter-branch funds for financing research and development words in the form of allocations to the Russian Technological Development Fund.
 4. The provisions of Item 2 of the present Article shall not extend to outlays on scientific studies or on the research and development works carried out in organisations which are engaged in scientific studies and (or) in research and development works in the capacity of performer (of the contractor or of the subcontractor). The said outlays shall be considered as made on the performance by these organisations of an activity aimed at deriving incomes.
 5. Where as a result of expenses incurred in connection with scientific studies and (or) research and development works a taxpaying organization gains the exclusive rights to the results of the intellectual activities indicated in Item 3 of Article 257 of this Code, these rights shall be recognized as the intangible assets subject to depreciation in compliance with Item 2 of Article 258 of this Code.

Article 263. Outlays on the Obligatory and Voluntary Insurance of Property


 1. The outlays on the obligatory and voluntary insurance of property embrace the insurance fees for all kinds of the obligatory insurance and for the following kinds of the voluntary insurance of property:
  1)  voluntary insurance of the transportation facilities (of water, air, ground and pipeline transport), including those rented, the outlays on whose maintenance are included in the outlays involved in production and sale;
  2)  voluntary insurance of freight;
  3)  voluntary insurance of the production-profiled fixed assets (including those rented), of non-material assets and of the objects of the capital construction in progress (including those rented);
  4)  voluntary insurance against the risks involved in the performance of the construction and mounting works;
  5)  voluntary insurance of the commodity-material stocks;
  6)  voluntary insurance of the harvest of agricultural cultures and the livestock;
  7)  voluntary insurance of other property which the taxpayer uses in carrying out an activity aimed at deriving an income;
  8)  voluntary insurance of responsibility for inflicting harm, if such insurance is a condition for the performance by the taxpayer of activity in conformity with the international liabilities of the Russian Federation or with the generally accepted international demands.
 2. The outlays on the obligatory kinds of insurance (those established by the legislation of the Russian Federation) shall be included in the composition of the other outlays within the limit of the insurance tariffs in conformity with the legislation of the Russian Federation and with the demands of the international conventions. If the given tariffs are not approved, the outlays on the obligatory insurance shall be included in the composition of the other outlays in the amount of the actual expenditures.
 3. The outlays on the voluntary types of insurance indicated in this Article shall be included into the composition of the other outlays in the amount of the actual expenditures.

Article 264. Other Outlays Involved in the Production and (or) Sale


 1. To the other outlays involved in the production and (or) in the sale, are referred the following taxpayer's outlays:
  1)  the sums of the taxes and fees calculated in the order established by the legislation of the Russian Federation on taxes and fees, with the exception of those listed in Article 270 of the present Code;
  2)  the outlays on the certification of the products and services;
  3)  the sums of the commission fees and other similar expenditures on the works (services), performed (rendered) by outside organisations;
  4)  the sums of the port and airfield fees, the outlays on the pilot's services and other similar expenses and the other similar payments;
  5)  the sums of paid out travelling allowances within the limit of the norms established in conformity with the legislation of the Russian Federation;
  6)  outlays on ensuring fire safety of a taxpayer in compliance with the laws of the Russian Federation, outlays on the maintenance of a gas rescue team, outlays on the services rendered for the protection of property, on the fire prevention services, outlays on the acquisition and of the other services of guarding activity, as well as outlays on the maintenance of the internal security service for fulfilling the functions of economic protection of the banking and economic operations, and for the protection of material values (with the exception of the outlays on the equipment and on the acquisition of weapons and other special means of defence);
  7)  outlays on ensuring normal labour conditions and accident prevention measures provided for by the laws of the Russian Federation, outlays on civil defence in compliance with the laws of the Russian Federation, as well as outlays on medical treatment of occupational diseases of workers engaged in jobs with harmful or dangerous working conditions, outlays connected the maintenance of premises and equipment of health units situated directly on the territory of the organization;
  8)  the outlays on hiring workers, including the outlays on the services of specialized organizations profiled on an engagement of the personnel;
  9)  the outlays on rendering services involved in the guarantee repairs and servicing, including deductions into the reserve against the forthcoming outlays on the guarantee repairs and guarantee servicing (with account of the provisions of Article 267 of the present Code);
  10)  the rentals (leasing payments) for rented (leased) property. If the property received under a contract of leasing is recorded by the lease holder, the rentals (leasing payments) shall be recognised as outlays minus the sums of depreciation charges calculated for this property in conformity with Article 259 of the present Code;
  11)  outlays on the maintenance of the company's transport facilities (motor, railway, air and other types of transport). The outlays on compensation for the use of personal passenger cars and motorbikes for making official trips within the limit of the norms established by the Government of the Russian Federation;
  12)  outlays on business trips, in particular, on:
  -  workers' fares to the place of destination of the business trip and back to the place of his permanent work;
  -  the hire of living premises. In this item of the outlays, subject to compensation shall also be the worker's expenses incurred in the remuneration of additional services rendered in hotels (with the exception of the fees for services rendered in bars and restaurants, in hotel rooms and payments for the use of recreational and health facilities);
  -  the daily or field allowances within the limit of the norms approved by the Government of the Russian Federation;
  -  the formalisation and issue of visas, passports, vouchers, invitations and other similar documents;
  -  the consular and airfield fees, fees for the right of the entry, passage and transit of motor and the other transportation facilities, for the use of sea channels and of other similar installations, and other similar payments and fees;
 12.1) outlays on the delivery from the place of residence (gathering) to the place of work and back of workers employed by the organizations exercising their activities by shifts or in the field (in expeditions). Said outlays shall be provided for by collective agreements;
  13)  outlays on providing food allowances for sea crews, river and air vessels within the limit of the norms approved by the Government of the Russian Federation;
  14)  outlays on legal and informational services;
  15)  outlays on consulting and other such services;
  16)  payment to the state and (or) private notaries for notarial formalisation. This kind of outlay shall be accepted within the limit of the tariffs approved in the established order;
  17)  outlays on auditor services;
  18)  outlays on the management of the organization or of its individual subdivisions, as well as outlays on the acquisition of services related to management of organizations or individual subdivisions thereof;
  19)  outlays on the services involved in sending over workers (technical and managerial personnel) by outside organisations for them to take part in the production process, in the management of the production or in the fulfilment of other functions involved in the production and (or) sale;
  20)  outlays on the publication of business accounting reports, as well as on publishing and on the other ways of revealing other kinds of information, if the legislation of the Russian Federation has imposed upon the taxpayer the duty to actualise such publication (revealing);
  21)  outlays involved in the presentation of the forms and of information of the state statistical observation, if the legislation of the Russian Federation has imposed upon the taxpayer the duty to present such information;
  22)  representation outlays connected with holding official reception and with the servicing of representatives from other organisations taking part in negotiations aimed at establishing and maintaining cooperation, in accordance with the procedure stipulated by Item 2 of the present Article;
  23)  outlays on the training and retraining of personnel on the taxpayer's staff on a contractual basis in accordance with the procedure stipulated by Item 3 of the present Article;
  24)  outlays on stationery;
  25)  outlays on postal, telephone, telegraph and other similar services, outlays on the remuneration of communication services and on services rendered by computer centres and banks, including those on the services of fax and satellite communication, of e-mail and of informational systems (SWIFT, Internet and other similar systems);
  26)  outlays connected with the acquisition of the right to the use of computer software and of data bases under the contracts with the right holder (under licence agreements). To the said outlays shall also be referred outlays on acquisition of exclusive rights to the software at the cost of less than 10 000 roubles and those made on the renewal of computer software and of data bases;
  27)  the outlays on the current study (research) of the market situation, on the collection of information directly involved in the production and sale of commodities (works, services);
  28)  the outlays on the advertising of the put out (acquired) and (or) of the sold commodities (works, services), of the activities of the taxpayer, of trade marks and service marks, including participation in exhibitions and in the fairs, taking into account the provisions of Item 4 of the present Article;
  29)  the contributions, deposits and other obligatory fees paid to non-profit organisations, if the payment of such contributions, deposits and other obligatory fees is a condition for the performance of their activity by the taxpayers who are payers of such contributions, deposits or other obligatory fees;
  30)  contributions to international organisations, if the payment of such contributions is an obligatory condition for the performance of their activity by the taxpayers who are payers of such contributions, or if it is a condition for the international organisation's rendering the services necessary for the performance of the said activity by the tax payer who is a payer of such contributions;
  31)  the outlays involved in the remuneration of services to the outside organisations for the maintenance and sale, in accordance with the procedure established by the legislation of the Russian Federation, of the objects of pledge and pawn over the time when the said objects are kept by the pawn holder after they are handed over to him by the pawn giver;
  32)  outlays on the maintenance of settlements for shifts of workers and temporary settlements, including all objects of housing-communal and socio-cultural purpose, of truck farms and other similar services, in the organizations exercising their activities by shifts or in the field (in expeditions). Said expenses for the purposes of taxation shall be recognized within the limits of the normative standards for maintenance of similar objects and services endorsed by bodies of local self-government at the place of the taxpayer's activities. Where such normative standards are not endorsed by bodies of local self-government, the taxpayer shall be entitled to apply the procedure for determining outlays on the maintenance of these objects effective with regard to similar objects situated on the given territory and subordinate to said bodies;
  33)  the deductions of the enterprises and organizations running especially dangerous radioactive and nuclear works and objects for forming the reserves for guaranteeing the security of the said works and objects at all stages of their life cycle and development in conformity with the legislation of the Russian Federation on the use of nuclear power and in accordance with the procedure established by the Government of the Russian Federation;
  34)  the outlays on the preparation and development of new production, workshops and aggregates;
  35)  the outlays of non-capital character connected with the improvement of technology, as well as of the organisation of production and management;
  36)  the outlays on services involved in keeping business accounting, rendered by outside organisations or the individual businessmen;
  37)  periodical (current) payments for the use of the rights to the results of intellectual activity and of the means of individualisation (in particular, of rights arising from the patents on the inventions, industrial samples and other forms of intellectual property);
  38)  the outlays effected by tax paying organisations making use of the labour of invalids in the form of funds directed towards the goals ensuring the social protection of invalids, if the invalids comprise no less than 50 per cent of the total number of such taxpayer's workforce and the share of the outlays on the remuneration of invalids' labour in the outlays on remuneration of labour is not less than 25 per cent.
 Recognized as goals ensuring the social protection of invalids shall be the improvement of labour conditions for invalids, creation of new jobs for invalids (including the acquisition and installation of equipment for, and the organization of the labour of, home-workers), training (including training in new professions and labour skills) and job placement of invalids, protection of the invalids' rights and lawful interests, measures for their rehabilitation (including acquisition and servicing of rehabilitation means, of guide-dogs, of authorizations to places in sanatoriums and health resorts) and providing for invalids equal opportunities (including transport servicing of invalids and arranging relaxation of disabled children) with other citizens in conformity with the legislation of the Russian Federation on the social protection of invalids, including making contributions for the maintenance of public organizations of invalids;
 When determining the total number of invalids, into the average-listed number of workers shall not be included invalids combining jobs, working on turn-key contracts and other contracts of civil-legal nature;
  39)  the outlays of tax paying invalids' public organisations, and of tax-paying institutions, the only owners of whose property are the public organisations of invalids in the form of the funds oriented towards the performance of the activity of the said public organisations of invalids and towards the goals pointed out in Item 38 of the present Item.
 After the expiry of the tax period, the receivers of the funds intended for the exercise of activities of a public organization of invalids and for the purposes of the social protection of invalids shall submit to the corresponding tax bodies at the place of their recording a report on the purpose-oriented use of the received funds.
 If these funds have not been used, from the moment when the receiver has actually used such funds, not for the purpose (violated the terms for granting these funds), such funds shall be recognised as income of the tax-payer who has received these funds.
 The outlays mentioned in Subitem 38 of the present Item and in the present Subitem cannot be included in the outlays connected with the production and (or) the sale of excisable commodities, mineral raw materials, other commercial minerals and other commodities in accordance with the list compiled by the Government of the Russian Federation in agreement with the all-Russia organizations of invalids, as well as with rendering intermediary services connected with the sale of such commodities, mineral raw materials and minerals;
 39.1) outlays of taxpaying organizations whose authorized (pooled) capital is completely made up of the contribution of religious organizations in the form of receipts from the sale of religious literature and articles of religious purpose, provided that these amounts are transferred for the exercise of the authorized activities of said religious organizations;
  40)  payments for the registration of the rights to immovable property and to land, of the deals in the said objects, payments for the supply of information on the registered rights and the remuneration of the services of the authorised bodies and specialised organisations involved in the assessment of property and in compiling documents of cadastre and technical recording (inventory) of the objects of immovable property;
  41)  outlays under the contracts of civil-legal nature (including turn-key contracts) concluded with individual businessmen not on an organisation's staff;
  42)  the outlays of the agricultural organisation taxpayers on providing food for the workers engaged in agricultural works;
  43)  outlays on the replacement of copies of periodical printed matter in which defects have been exposed or which have lost their marketable appearance in the course of transportation and (or) sale, and which have proved to have missing parts, but not over seven per cent of the cost of the edition of the corresponding issue of the periodical printed publication;
  44)  losses in the form of the cost of mass media products and books which have defects or have lost their marketable appearance, or which have not been sold within the time term indicated in the present Subitem (morally outdated), and which are written off by the taxpayer engaged in the manufacture and issue of the mass media products and books, within the limit of ten per cent of the cost of the edition of the corresponding issue of the periodical publication or of the corresponding edition of books, as well as the outlays on writing off and utilisation of mass media products and books in which defects have been exposed or which have lost their marketable appearance or which have not been sold.
 Recognised as outlays shall be the cost of mass media products and books which have not been sold to the following deadlines:
  -  as concerns the printed periodical publications before the output of the next issue of the corresponding periodical;
  -  as concerns books and other non-periodical printed matter - within 24 months after their issue;
  -  as concerns calendars (regardless of their form) before April 1 of the year to which they refer;
  45)  the contributions on the obligatory social insurance against accidents in production and against occupational diseases, made in conformity with the legislation of the Russian Federation;
  46)  the taxpayer's deductions made to provide for the supervisory activity of the specialised institutions for the purposes of exerting control over the observation by such taxpayers of the corresponding demands and terms, stipulated by the legislation of the Russian Federation, and the taxpayers' deductions into reserves created in conformity with the legislation of the Russian Federation regulating activities in the sphere of communications;
  47)  losses caused by spoilage;
  48)  outlays connected with maintenance of public catering units for servicing labour collectives (including amounts of accrued depreciation, outlays on repairing premises, outlays on lighting, heating, water and power supply, as well as on fuel for cooking);
  49)  the other outlays involved in the production and (or) sale.
 2. To the representation outlays shall be referred the taxpayers' outlays on official receptions and (or) on servicing the representatives of other organisations, taking part in negotiations aimed at establishing and (or) at maintaining mutual cooperation, as well as the participants who have arrived to attend the meetings of the taxpayer's board of directors (of the board) or of the other management body, regardless of the place of holding such events. To the representation outlays shall be referred those made on holding official receptions (lunches, dinners or other similar events) arranged for the said persons, as well as for the officials of a taxpaying organization participating in the talks, on providing transport facilities to take these persons to the place of holding representation events and (or) meetings of the management body and back, on snack bar servicing during negotiations, and on the remuneration of the services of interpreters who are not on the tax payer's staff, to provide for translation during the representation events.
 To the representation outlays shall not be referred those made on organising entertainment and recreation, prophylactic activity or the treatment of diseases.
 The representation outlays shall be included in the course of the reporting (tax) period in the composition of the other outlays in an amount not exceeding four per cent of the taxpayer's outlays on the remuneration of labour over this reporting (tax) period.
 3. To the taxpayer's outlays on personnel training and retraining carried out on the grounds of contracts with educational establishments shall be referred outlays involved in the training and retraining (including in raising the qualifications of personnel) in conformity with the contracts signed with these establishments.
 The said outlays shall be included in the composition of the other outlays, if:
  1)  the corresponding services are rendered by Russian educational establishments which have received state accreditation (possess the corresponding licence), or by foreign educational establishments with the corresponding status;
  2)  training (retraining) is provided to the workers on the tax payer's staff and in the operating organisations responsible for maintaining the qualifications of workers employed at nuclear power plants - to the workers of these plants, in conformity with the legislation of the Russian Federation;
  3)  the programme for training (retraining) helps in raising qualifications and encourages a more efficient use of the trained or the retrained specialist in this organisation in the framework of the tax payer's activity.
 Not recognised as outlays on personnel training and retraining shall be the outlays involved in organising entertainment, recreation or medical treatment, or outlays connected with the maintenance of educational establishments or with rendering them gratuitous services, with the payment for the workers' studies at higher and secondary special educational establishments for them to receive a higher or secondary special education. The said outlays shall not be accepted for the purposes of taxation.
 4. For the purposes of the present Chapter, to the organisation's outlays on advertising shall be referred:
  -  the outlays on advertising effected through the mass media (including announcements in the press and in radio and television programmes) and the telecommunication networks;
  -  outlays on lit and other outdoor advertising, including the manufacture of advertisement stands and panels;
  -  outlays on taking part in exhibitions, fairs and displays, on the decoration of showcases, of sales exhibitions, rooms for the exposition of samples and demonstration halls, on the production of advertising booklets and catalogues containing information on the works and services carried out and rendered by an organization, or on an organization proper, and on the price discounts concerning the commodities which have fully or partially lost their original properties because of being put on display.
 The taxpayer's outlays on the acquisition (the manufacture) of the prizes given out to the winners during the large scale advertising campaigns, as well as the taxpayer's outlays on other types of advertising not indicated in Paragraphs from Two to Four of this Item, which are carried out by him with a report (tax) period for the purposes of taxation shall be recognized in the amount not exceeding one per cent of the proceeds from sale to be defined in conformity with Article 249 of the present Code.

Article 265. Extra-Sale Outlays


 1. Into the composition of the extra-realisation outlays, not connected with production and the sale, are included the justified outlays on the performance of an activity which is not directly involved in the production and (or) in sale. To such outlays are, in particular, referred:
  1)  outlays on the maintenance of the property handed over under a rental contract (of leasing) (including on the depreciation of this property);
 For organisations which hand over on a systematic basis for payment into temporary use and (or) into temporary possession and use their property and (or) the exclusive rights arising from the patents on inventions, on industrial samples and on other kinds of intellectual property, seen as outlays involved in the production and realisation shall be the outlays connected with this activity;
  2)  outlays in the form of interest on any kind of debt liabilities, including interest calculated on securities and other liabilities, issued (emitted) by the taxpayer subject to the specifics provided for by Article 269 of this Code (for banks, the specifics in defining the outlays in the form of interest shall be established in conformity with Articles 269 and 291.
 Recognised as outlays shall, in this case, be interest on any kind of debt liabilities, irrespective of the character of the granted credit or loan (current and /or/ investment). Recognised as outlays shall be only the sum of interest calculated over the actual time of use of the borrowed funds (the actual time of the said securities being placed at the disposal of third persons), and of the profitability established by the emitter (loan-giver);
  3)  the outlays on organizing the issue of own securities, especially on the preparation of the prospectus of the emission of securities, on the manufacture or acquisition of blank forms, on the registration of securities, outlays connected with servicing own securities, including outlays on the services for keeping a register of the owners of securities, on depository services, on the services of agents for paying interest (dividends), the outlays connected with keeping a register, providing information to share holders in compliance with the laws of the Russian Federation, and other similar outlays;
  4)  outlays connected with servicing the securities acquired by a taxpayer, including payment for the services related to keeping a register of the owners of securities, for depository services, outlays connected with the receipt of information in compliance with the laws of the Russian Federation, and other similar outlays;
  5)  outlays in the form of negative currency exchange rates arising from revaluating the property in the form of currency values and claims (liabilities) whose cost is expressed in foreign currency, including on currency accounts in banks, which is carried out in connection with a change in the official exchange rate of foreign currency to the rouble of the Russian Federation, fixed by the Central Bank of the Russian Federation;
 For the purposes of this Chapter, a negative currency exchange rate shall be recognized as the currency exchange rate arising in the course of discounting property in the form of currency values or claims expressed in foreign currency or in the course of revaluating liabilities expressed in foreign currency;
 5.1) outlays in the form of the sum difference which a taxpayer has, when the sum of arising liabilities and claims calculated on the basis of the exchange rate of conventional monetary units established by agreement of the parties on the date of sale (posting) of goods (works, services) or property rights does not comply with the actual amount of money in roubles received;
  6)  outlays in the form of negative (positive) difference emerging as a result of deviations in the rate of sale (purchase) of foreign currency from the official exchange rate of the Central Bank of the Russian Federation, established on the date of the transfer of ownership of foreign currency (the specifics of determining outlays of banks on these operations shall be established by Article 291 of this Code);
  7)  outlays of taxpayers who apply the method of calculation, on setting up the reserves against risky debts (in conformity with the order established by Article 266 of the present Code);
  8)  outlays on the liquidation of fixed assets withdrawn from operation, including the amounts of depreciation which is not fully accrued in compliance with the established time period of beneficial use thereof, as well as outlays on the liquidation of incomplete construction projects and other property whose installation is not completed (outlays on dismantling, disassembling and removal of disassembled property), on guarding mineral wealth and other similar works;
  9)  outlays on temporary closing down and re-activating industrial capacities and objects, including expenditure on the maintenance of conserved industrial capacities and objects;
  10)  court outlays and arbitration fees;
  11)  outlays on cancelling production orders, as well as outlays on production which has not yielded any products. Outlays on canceling production orders, as well as outlays on production which has not yielded any products, shall be recognized on the basis of acts of a taxpayer endorsed by the head thereof or by a person authorized by him in the amount of direct factor costs determined in compliance with Articles 318 and 319 of this Code;
  12)  outlays on operations with tare, if not otherwise provided for by the provisions of Item 3 of Article 254 of this Code;
  13)  outlays in the form of fines, penalties and (or) other sanctions for violating the contractual or debt liabilities recognized by debtors and subject to payment by debtors on the basis of effective court decisions, as well as outlays on the recompense of inflicted damage;
  14)  outlays in the form of the sums of taxes referred to the delivered commodity-material values, works and services, if the credit indebtedness (the liabilities to the creditors) on such delivery is written off in the reporting period in conformity with Item 18 of Article 250 of the present Code;
  15)  outlays on the remuneration of services rendered by banks including those connected with the installation and operation of electronic systems of documents circulation between a bank and clients, including "client-bank" systems;
  16)  outlays on holding an annual meeting of shareholders (participants, partners), in particular, outlays connected with renting premises, with preparing and forwarding information necessary for holding such meetings, as well as other outlays directly involved in holding the meeting;
  17)  in the form of outlays not subject to compensation from the budget, on performing works involved in mobilisation preparations, including expenditures on maintaining the capacities and objects which are loaded (used) only partially but still necessary for the fulfilment of the mobilisation plan;
  18)  outlays on transactions with the financial instruments of futures deals, taking into account the provisions of Articles 301-305 of the present Code;
  19)  outlays in the form of deductions to organisations included in the structure of the Russian Defence Organisation for Sports and Technologies, for the accumulation and redistribution of funds aimed at providing for the training of citizens, in conformity with the legislation of the Russian Federation, in military recorded specialities, for the military-patriotic education of youths and for the development of aviation, technical and military-applied kinds of sport;
  20)  other justified outlays.
 2. For the purposes of the present Chapter, to the extra-sale outlays shall be equated the losses incurred by the taxpayer in the reporting (tax) period, in particular:
  1)  in the form of the losses of the past tax period identified in the current reporting (tax) period;
  2)  sums of bad debts, and where a taxpayer has decided on the creation of a reserve against doubtful debts, the sums of bad debts not covered at the expense of the reserve;
  3)  the losses from idle time because of internal production reasons;
  4)  the losses from idle time because of external reasons not compensated by the guilty persons;
  5)  outlays in the form of a shortage of material values in production and warehouses, as well as at trading enterprises in the absence of guilty persons, and losses from embezzlements whose culprits have not been caught. In the given cases, the fact of the absence of guilty persons shall be documentarily confirmed by an authorised state power body;
  6)  the losses from natural calamities, fires, accidents and other emergency situations, including the expenditures connected with the aversion or with the liquidation of the aftermath of the natural calamities and emergency situations.
  7)  losses in a deal of cession of the right of claim in the procedure established by Article 279 of this Code.

Article 266. Outlays on Setting Up Reserves Against Risky Debts


 1. Recognised as a risky debt shall be any kind of indebtedness to the taxpayer, if this indebtedness is not settled before the deadline fixed by the contract and is not secured against with a pawn, surety or bank guarantee.
 A debt in respect of which the creation of a reserve against possible loan losses is provided in compliance with Article 292 of this Code, shall not be regarded as doubtful for taxpaying banks.
 For taxpaying insurance companies determining receipts and expenditures by the method of calculations under insurance contracts, co-insurance contracts and reinsurance contracts in respect of which insurance reserves have been formed, a reserve against doubtful debts in respect of the debit indebtedness connected with payment of insurance premiums (fees) shall not be set up.
 2. Recognised as risky debts (unrecoverable debts) shall be those debts to the taxpayer on which the fixed term of legal limitation has expired, and also those debts on which in conformity with the civil legislation liability is terminated, because it is impossible to fulfil it, on the grounds of an act of the state body or in the face of the organisation's liquidation.
 3. The taxpayer shall have the right to set up reserves against doubtful debts in accordance with the procedure stipulated by the present Article. The sums of deductions into these reserves shall be included into the composition of the extra-sale outlays on the last day of the reporting (tax) period. The present provision shall not be applied towards the outlays for the formation of reserves against debts incurred in connection with the non-payment of interest, with the exception of banks. Banks shall have the right to create reserves against risky debts with respect to the indebtedness which has accumulated because of non-payment of interest on the debt liabilities and with respect to other kinds of indebtedness, with the exception of loan indebtedness and of indebtedness equated to it.
 4. The sum of the reserve against risky debts shall be determined by the results of an inventory of the debit indebtedness, carried out on the last day of reporting (tax) period, and shall be calculated in this way:
  1)  as concerns risky indebtedness with a term of over 90 days - in the sum of the set up reserve shall be included the full sum of indebtedness discovered on the grounds of the inventory;
  2)  as concerns the risky indebtedness with a term of 45 to 90 days (inclusive) - in the sum of the reserve shall be included 50 per cent from the sum of the indebtedness exposed on the grounds of the inventory;
  3)  as concerns the risky indebtedness with a term of less than 45 days the sum of the created reserve shall not be increased.
 The sum of the established reserve against risky debts shall not exceed 10 per cent of the earnings of the reporting (tax) period, defined in conformity with Article 249 of the present Code (for banks - of the sum of incomes determined in compliance with this Chapter, safe for the incomes in the form of restored reserves).
 The reserve against risky debts may be used by the organisation only for coverage of the losses from hopeless debts, recognised as such in the order established by the present Article.
 5. The sum of the reserve against high risk losses not fully used by the taxpayer in the reporting period for the coverage of losses from hopeless debts may be put off by him to the next reporting (tax) period. In this case, the sum of the reserve created again in accordance with the results of the inventory of the reserve, shall be corrected by the sum of the residual of the reserve of the previous reporting (tax) period. If the sum of the reserve created again by the results of the inventory of the reserve is less than the sum of the residual of the reserve of the previous reporting (tax) period, the difference shall be included in the composition of the taxpayer's extra-sale incomes in the report (tax) period. If the sum of the reserve created again by the results of the inventory of the reserve is larger than the sum of the residual of the previous reporting (tax) period, the difference shall be included in the extra-sale outlays in the current reporting (tax) period.
 If the taxpayer adopts the decision on setting up a reserve against high risk debts, the writing off recognised as hopeless in conformity with the present Article shall be made at the expense of the sum of the created reserve. If the sum of the created reserve is less than the sum of the hopeless debts subject to writing off, the difference (loss) shall be included in the composition of the extra-sale outlays.

Article 267. Outlays on Setting Up a Reserve for the Guarantee Repairs and Guarantee Servicing


 1. Taxpayers selling commodities (works) shall have the right to create reserves for forthcoming outlays on the guarantee repairs and guarantee servicing, and the deductions on the formation of such reserves shall be accepted for the purposes of taxation in accordance with the procedure stipulated by the present Article.
 2. The taxpayer shall adopt a decision on setting up such reserves on his own and shall establish in the accounting policy for the purposes of taxation the ultimate amount of the deductions into this reserve. The reserve shall be created in this case with respect to those commodities (works), for which, in conformity with the terms of the contract concluded with the buyer, are envisaged the servicing and repairs in the course of the guarantee period.
 3. Recognised as outlays shall be the sums of deductions into the reserve as on the date of selling the said commodities (works). The size of the established reserve shall not exceed the ultimate amount defined as the share of the taxpayer's outlays on the guarantee repairs and servicing he has actually made, in the amount of his earnings from the sale of such commodities (works) for three previous years, multiplied by the amount of proceeds from the sale of said goods (works) for the report (tax) period. Where a taxpayer has been selling goods (works) on conditions of making warranty repair and servicing for a term of less than three years, the volume of proceeds from the sale of said goods (works) for the actual period of such sale shall be taken into account, when calculating the maximum amount of such reserve.
 4. Taxpayers who have not sold commodities (works) under a term of the guarantee repairs and servicing shall have the right to create a reserve against the guarantee repairs and servicing of commodities (works) in an amount not exceeding the expected outlays on the said expenditures. Seen as expected expenditures shall be the outlays envisaged in the plan for the fulfilment of guarantee liabilities with account taken of the guarantee term.
 After the expiry of the tax period, the taxpayer shall correct the size of the established reserve, proceeding from the share of the actually effected outlays on the guarantee repairs and servicing in the volume of the earnings from the sale of the said commodities (works) for the previous period.
 5. The sum of the reserve for warranty repair and servicing of goods (works) not fully used by the taxpayer in the reporting period for repair of the goods (works) sold on conditions of providing a warranty may be put off by him to the next reporting (tax) period. In this case, the sum of the reserve created anew for the next tax period shall be corrected by the sum of the residual of the reserve of the previous reporting (tax) period. If the sum of the new created reserve is less than the sum of the residual of the reserve of the previous reporting (tax) period, the difference shall be subject to inclusion in the composition of the taxpayer's extra-sale incomes for the current tax period.
 If a taxpayer adopts the decision on setting up a reserve for warranty repair and servicing of goods (works), writing off outlays on warranty repair shall only be made at the expense of the sum of the created reserve. If the sum of the created reserve is less than the sum of the expenses on repairing made by a taxpayer, the difference shall be subject to inclusion in the composition of other outlays.
 6. Where a taxpayer adopts a decision on termination of the sale of goods ( of carrying out works) on conditions of providing warranty repair and warranty servicing thereof, the sum of the previously created and unused reserve shall be subject to inclusion in the composition the taxpayer's incomes upon the termination of the validity of contracts for warranty repair and warranty servicing.

Article 268. Specifics in Defining the Outlays in the Sale of Goods


 1. When selling goods, taxpayers shall have the right to reduce the incomes from such operations by the cost of the sold goods, defined in the following order:
  1)  in the sale of the depreciated property - by the residual cost of the depreciated property, defined in conformity with Item 1 of Article 257 of the present Code;
  2)  in the sale of other property (with the exception of securities, of the products of one's own manufacture and of the purchased commodities) - by the cost of the acquisition of the given property;
  3)  in the sale of the purchased commodities - by the cost of the acquisition of the given commodities, defined in conformity with the accounting policy accepted by the organisation for taxation purposes, with the use of one of the following methods for the evaluation of the purchased commodities:
  -  in accordance with the cost of the commodities which are the first acquired by the time of acquisition (FIFO);
  -  in accordance with the cost of those commodities which are the last acquired by the time of acquisition (LIFO);
  -  in accordance with the average cost;
  -  in accordance with the cost of commodity unit.
 When selling the property indicated in this Article, the taxpayer shall also have the right to reduce the incomes from such operations by the sum of the outlays directly involved in such sale, in particular, by the outlays involved in the storage, handling and transportation of the sold property. When selling the purchased commodities, the outlays involved in their acquisition and sale shall be formed with account taken of the provisions of Article 320 of the present Code.
 2. If the price of acquisition of the property indicated in Subitems 2 and 3 of Item 1 of this Article with account taken of the outlays involved in its sale exceeds the earnings from its sale, the difference between these values shall be recognised as the taxpayer's loss which shall be recorded for the purposes of taxation.
 3. If the residual cost of the depreciated property mentioned in Subitem 1 of Item 1 of the present Article, with account taken of the outlays involved in its sale, exceeds the earnings from it realization, the difference between these values shall be recognised as the tax payer's loss, which is recorded for the purposes of taxation in the following order. The incurred loss shall be included in the composition of the taxpayer's other outlays in equal parts in the course of the term defined as the difference between the term of beneficial use of this property and the actual term of its use until the moment of sale.

Article 269. Specifics of Referring Interest on Debt Liabilities to Outlays


 1. For the purposes of the present Chapter, seen as debt liabilities shall be credits, commodity and commercial credits, loans, bank deposits, banking accounts or other borrowings, regardless of the form of their legalisation.
 Recognised as outlays shall be the interest calculated on any kind of debt liability under the condition that the amount of interest calculated by the taxpayer on the debt liability does not essentially deviate from the average level of interest collected on debt liabilities issued in the same quarter (month - for the taxpayers which have passed to the calculation of monthly advance payments reasoning from actually received profits) on comparable terms. Seen as debt liabilities issued on comparable terms shall be the debt liabilities issued in the same currency for the same time terms in comparable amounts against similar securities. When determining the average level of interest on inter-bank credits, only information on the inter-bank credits shall be taken into account. This provision shall likewise apply to interest in the form of discount which a noteholder gets as a difference between the price of repurchase (payment) of a promissory note and the price of sale thereof.
 Seen as essential deviation from the amount of the computed interest on a debt liability shall be deviations by more than 20 per cent towards a rise or a reduction from an average level of interest calculated on similar debt liabilities issued in the same quarter on comparable terms.
 In the absence of debt liabilities issued in the same quarter on comparable terms at the taxpayer's option, the ultimate amount of interest recognised as outlays shall be taken as equal to the refunding rate of the Central Bank of the Russian Federation, increased 1.1 times if the debt liability is formalised in roubles, and equal to 15 per cent for debt liabilities in foreign currency.
 2. If a taxpaying Russian organization has a debt liability in respect of a foreign organization which directly or indirectly has under its ownership more than 20 per cent of the authorized (pooled) capital (fund) of this Russian organization (hereinafter referred to in this Article as controlled debt) and if the amount of debt liabilities on the credits granted by the foreign organization and not settled by this Russian organization exceeds more than three-fold (for banks and organizations engaged in leasing activity - more than twelve times and a half) the difference between the sum of its fixed assets and the amount of liabilities (hereinafter for the purposes of the present Item - one's own capital), as on the last day of every reporting (tax) period, the following rules shall be applied to define the ultimate amount of interest to be included into the composition of the outlays.
 A taxpayer shall be obliged on the last day of every report (tax) period to calculate the ultimate amount of interest on controlled debt, recognized as an outlay, by way of dividing the amount of interest on the controlled debt in every report (tax) period, calculated by the taxpayer, by the capitalization coefficient calculated as on the last report date of an appropriate report (tax) period.
 The capitalisation coefficient shall in this case be defined by dividing the amount of the corresponding unsettled controlled indebtedness by the size of one's own capital, corresponding to the share of this foreign organisation's direct or indirect participation in the authorised (summed up) capital (the fund) of the Russian organisation, and by dividing the obtained result by three (for the banks and for the organisations engaged in the leasing activity - by twelve and a half).
 For the purposes of this Item, when determining the amount of one's own capital, the sums of debt liabilities in the form of indebtedness of taxes and fees, including the current indebtedness of taxes and fees, the sums of postponements and installments, tax credits and investment tax credits, shall not be taken into account.
 3. Into the composition of the outlays shall be included interest on controlled indebtedness, calculated in conformity with Item 2 of the present Article, but no more than the actually calculated interest.
 The rules laid down by Item 2 of the present Article, shall not be applied to interest on the borrowed funds if the unsettled indebtedness is not controlled.
 4. The positive difference between the calculated interest and the ultimate interest calculated in conformity with the order established by Item 2 of the present Article shall be equated for taxation purposes to the dividends and shall be levied with tax in conformity with Item 3 of Article 284 of the present Code.

Article 270. Outlays Not Recorded for the Purposes of Taxation


 When defining the tax base, the following outlays shall not be recorded:
  1)  those in the form of the sums of dividends calculated out by the taxpayer, and of the other sums of a distributed income;
  2)  those in the form of penalties, fines and other sanctions transferred into the budget (state extra-budgetary funds), as well as in the form of fines and other sanctions collected by the state organisations, to which the right to inflict these sanctions is granted by the legislation of the Russian Federation;
  3)  those in the form of a contribution into the authorised (summed up) capital, or of a contribution into a simple partnership;
  4)  in the form of the sum of the tax as well as the sums of the payments for above-the-norm ejections of pollutants into the environment;
  5)  those in the form of the outlays on the acquisition and (or) on the creation of the depreciated property;
  6)  those in the form of contributions for the voluntary insurance, except for the outlays indicated in Articles 255 and 263 of the present Code;
  7)  those in the form of contributions into the non-state pension security, except for the outlays pointed out in Article 255 of the present Code;
  8)  in the form of interest calculated by a tax paying borrower to the creditor above the sums recognized as outlays for the purposes of taxation in conformity with Article 269 of the present Code;
  9)  in the form of the property (including monetary assets) transferred by a commission agent, an agent and (or) other attorney in the execution of contracts of commission, of agency contracts and of other similar contracts, as well as on account of covering the expenses made by a commission agent, an agent and (or) other attorney instead of a consignor, principal and (or) another truster under the terms and conditions of contracts made;
  10)  those in the form of deductions into the reserve against the devaluation of investments into securities, set up by organisations in conformity with the legislation of the Russian Federation, with the exception of the sums of deductions into the reserves against the devaluation of securities, made by professional securities market traders in conformity with Article 300 of the present Code;
  11)  those in the form of guarantee deposits, transferred into the special funds established in conformity with the demands of the legislation of the Russian Federation, intended for reducing the risks of the non-execution of liabilities on deals in the performance of the clearing activity or of an activity aimed at organising trading on the securities market;
  12)  those in the form of funds and other property handed over under contracts of credit and loan (of other similar funds or other property regardless of the form of legalization of borrowings including debt securities), as well as in the form of the sums directed towards the repayment of such borrowings;
  13)  those in the form of losses incurred by the objects of the servicing of production and economies, including the objects of communal housing and the socio-cultural sphere, in the part exceeding the ultimate amount defined in conformity with Article 275.1 of the present Code;
  14)  those in the form of property, works, services and rights of property handed over by way of prepayment by taxpayers who define the incomes and expenditures by method of computation;
  15)  those in the form of voluntary membership fees (including entrance fees) into public organisations, of the sums of voluntary contributions made by participants in the unions, associations and organisations (amalgamations) for the maintenance of the said unions, associations and organisations (amalgamations);
  16)  those in the form of the cost of gratuitously handed over property (works, services, the rights of property) and of outlays involved in such handing over;
  17)  those in the form of the cost of the property handed over in the framework of the purpose-oriented financing in conformity with Subitem 14 of Item 1 of Article 251 of the present Code;
  18)  those in the form of the negative difference formed as a result of the revaluation of precious stones when the price lists are amended in the established order;
  19)  those in the form of taxes presented in conformity with this Code by the taxpayer to the buyer (acquirer) of commodities (works and services, as well as rights of property), if not otherwise provided for by this Code;
  20)  those in the form of the funds transferred to the trade union organisations;
  21)  those in the form of the outlays on any kind of remuneration given to the management or to the workers besides the remunerations paid out on the grounds of labour agreements (contracts);
  22)  those in the form of bonuses paid out to workers at the expense of special-purpose funds or of purpose-oriented receipts;
  23)  those in the form of material assistance to workers (including for an initial contribution for the acquisition and (or) for the construction of housing, for the full or a partial repayment of the credit granted for the acquisition and (or) for the construction of the housing, or of interest-free or privileged loans for improvement of housing conditions, for the acquisition of domestic utensils and for the satisfaction of other social needs);
  24)  those for the payment of leave to workers, including to women with children, granted additionally in accordance with the terms of collective agreements (above those envisaged by the currently applicable legislation);
  25)  those in the form of extra payments to pensions, single-time allowances to retiring veterans of labour, the incomes (dividends, interest) on shares or the deposits of the organisation's labour collective, the compensatory allowances in connection with price rises made above the size of the indexation of the incomes by decision of the Government of the Russian Federation, compensations for the higher cost of meals in canteens, snack-bars or prophylactic locations, or providing for them at privileged prices or free of charge (with the exception of special meals for the individual worker categories in the cases envisaged by currently applicable legislation, and with the exception of cases when free of charge or privileged meals are stipulated by labour agreements (contracts) and (or) collective agreements;
  26)  for the remuneration of fares for going to the place of work and back in public transport and by special routes in departmental vehicles, with the exception of the sums to be included in the composition of the outlays on the manufacture and sale of commodities (works, services) because of the technological specifics of the production, and with the exception of cases when outlays on the remuneration of fares to the place of work and back are envisaged by labour agreements (contracts) and (or) collective agreements;
  27)  for coverage of the price differences in the sale at privileged prices (tariffs) (below the market prices) of commodities (works, services) to workers;
  28)  for coverage of the price differences in the sale at privileged prices of products of auxiliary economies for organising public catering;
  29)  for the remuneration of vouchers for treatment or rest, of excursions or travel, of studies in sports sections, circles or clubs, of attending cultural and entertainment or physical culture (sport) events, of subscription to literature other than normative-technical and other literature used for industrial purposes literature, and of commodities for the workers' personal consumption, as well as other similar outlays made in the workers' favour; of the consignor, of the principal or other trustees;
  30)  those in the form of the outlay of the taxpayers - organisations for the state stock of special (radioactive) raw materials and of fissionable materials of the Russian Federation on transactions with material values of the state stock of special (radioactive) raw materials and fissionable materials involved in the replenishment and maintenance of the said stock;
  31)  those in the form of shares handed over by the emitting tax payer, placed between the shareholders in accordance with the decision of the general meeting of shareholders in proportion to the number of shares already in their ownership, or the difference between the nominal cost of the new shares handed over instead of the original ones, and the nominal cost of the original shares of the shareholder during the placement of shares among the shareholders in case of an augmentation of the emitter's authorised capital;
  32)  those in the form of property or of rights of property handed over as a pledge or a pawn;
  33)  those in the form of sums of taxes calculated into the budgets of different levels, if the taxpayer has earlier included such taxes in the composition of the outlays, when the tax-payer's credit indebtedness on such taxes is written off in conformity with Subitem 21 of Item 1 of Article 251 of the present Code;
  34)  those in the form of the purpose-oriented deductions made by the taxpayer for the purposes pointed out in Item 2 of Article 251 of the present Code;
  35)  those for the performance of useless works put into the development of natural resources in conformity with Item 5 of Article 261 of the present Code;
  36)  those made on scientific studies and (or) on research and development works which have not produced any positive result - in excess of the amount of the outlays provided for by Article 262 of this Code;
  37)  those in the form of the travelling allowances paid out above the norm, established by the legislation of the Russian Federation;
  38)  those on compensation for the use of personal cars and motorbikes on business trips, on the remuneration of daily allowances, field allowances and food rations for the crews of the sea, river and air vessels above the norms of such outlays, fixed by the Government of the Russian Federation;
  39)  those in the form of payment to the state and (or) to a private notary for formalisation by a notary above the tariffs approved in the established order;
  40)  those in the form of contributions, deposits and other obligatory payments made to non-profit organisations and international organisations, except for those pointed out in Subitems 29 and 30 of Item 1 of Article 264 of the present Code;
  41)  those for the replacement of copies of the periodical printed matter which contain defects, which have lost their commercial appearance or which have been found to be absent, as well as losses in the form of the cost of mass media products and books which have lost their commercial style, in which defects have been exposed and which have not been sold, except for the outlays and losses pointed out in Subitems 43 and 44 of Item 1 of Article 264 of the present Code;
  42)  those in the form of representation outlays in the part exceeding their amounts envisaged by Item 2 of Article 264 of the present Code;
  43)  those in the form of outlays envisaged by the sixth paragraph of Item 3 of Article 264 of the present Code;
  44)  for the acquisition (manufacture) of the prizes given to the winners in drawing such prizes when holding mass advertising campaigns, as well as outlays on other kinds of advertising which are not provided for by Paragraphs from Two to Four of Item 4 of Article 264 of this Code in excess of the ultimate norms established by Paragraph Five of Item 4 of Article 264 of this Code;
  45)  those in the form of deductions to the Russian Fund for Fundamental Studies, the Russian Humanitarian Scientific Fund, the Fund for Rendering Assistance to Small Businesses in the Scientific-Technological Sphere, the Federal Fund for Production Innovations, the Russian Technological Development Fund, as well as to other branch and interbranch funds for financing scientific studies and research and development works registered in the procedure provided for by the Federal Law on Science and State Scientific Research Policy in addition to the allocations provided for by Item 3 of Article 262 of this Code;
  46)  the negative difference obtained from the revaluation of securities in accordance with the market cost;
  47)  those in the form of outlays of the founder of trust management connected with the execution of an asset management contract, where the asset management contract stipulates that the founder of trust management is not the beneficiary;
  48)  those in the form of outlays of religious organizations in connection with carrying out religious ceremonies and rituals, as well as in connection with the sale of religious literature and articles of religious purpose.
  49)  the other outlays, not meeting the criteria pointed out in Item 1 of Article 252 of the present Code.

Article 271. Procedure for Recognising Incomes When Using the Calculation Method


 1. For the purposes of this Chapter, the incomes shall be recognised in the reporting (tax) period in which they have taken place, irrespective of the actual incoming of monetary funds, of other property (works, services) and (or) of the rights of property (method of calculation).
 2. As concerns incomes referring to several reporting (tax) periods and if the connection between the incomes and the outlays cannot be clearly identified or is identified only in an indirect way, these shall be distributed by the taxpayer on his own, with account taken of the principle of evenness in recognising incomes and outlays.
 For long technological cycle (over one tax period) production facilities, except for case when completed works (services) are delivered in phases under the contracts concluded, income from the sale of the said works (services) shall be distributed by the taxpayer at the taxpayer's own discretion in compliance with the principle of expense formation for the said works (services).
 3. For incomes from sale, unless otherwise envisaged by the present Chapter, recognised as the date of deriving an income shall be the day of sale of these commodities (works, services, rights of property), defined in conformity with Item 1 of Article 39 of the present Code, regardless of the actual arrival of monetary funds (other property /works, services/ and /or/ of the rights of property) in payment for them. In the sale of commodities (works, services) under a contract of commission (under an agency agreement) by the tax paying consignor (the principal), the date of receiving incomes from sale thereof shall be the date of selling the property (property rights) owned by the consignor (the principal) which is indicated in the notice of the commission agent (agent) on the sale thereof and (or) in the report of the commission agent (agent).
 4. Recognised as the date of obtaining an income for the extra-realisation incomes shall be:
  1)  the date of the parties' signing an act on the transfer and acceptance of the property (of the acceptance and handing over of works or services), - as concerns the incomes:
  -  in the form of property (works, services) received free of charge; - other similar incomes;
  2)  the date of arrival of monetary funds to a taxpayers's settlement account (his cashier's office) - as regards incomes:
 in the form of dividends from share participation in the activity of other organizations;
 in the form of monetary assets received free of charge;
 in the form of the sums of returned contributions previously paid to non-profit making organizations which were included into the composition of outlays;
 in the form of other similar incomes;";
  3)  the date of settlements or of the taxpayer's submitting the documents in accordance with the terms of the concluded agreements - as concerns the incomes:
 from leasing property;
 in the form of license payments (including royalties) for the use of objects of intellectual property;
 in the form of other similar incomes;
  4)  the date of one's recognition as a debtor or the date of entry of a court decision into legal force - as regards incomes in the form of fines, penalties and (or) other sanctions for violating the terms of contractual or debt liabilities, as well as in the form of the sums for the recompense of losses (damage);
  5)  the last day of the reporting (tax) period - as concerns the incomes:
  -  in the form of the sums of replenished reserves and other similar incomes;
  -  in the form of an income placed in favour of the taxpayer, if he is taking part in a simple partnership;
  -  incomes from the trusted management of the property;
  -  other similar incomes;
  6)  the date of exposing an income (of receiving and /or/ of revealing documents confirming the existence of the income) - as concerns the incomes of previous years;
  7)  the date of the transfer of ownership with regard to foreign currency and precious metals, when making transactions in foreign currency and precious metals, as well as the last day of the current month - as regards incomes in the form of positive exchange rate difference in respect of property and the claims (liabilities), whose cost is expressed in foreign currency, and positive revaluation of the cost of precious metals;
  8)  the date of compiling an act on the liquidation of the depreciated property formalised in accordance with the demands of business accounting - as concerns incomes in the form of materials or other kinds of property received during the liquidation of the depreciated property withdrawn from use;
  9)  the date when the recipient of property (including monetary assets) actually used said property (including monetary assets) not for the purpose they were intended for, or violated the terms and conditions under which they were provided - as regards the incomes in the form of property (including monetary assets) specified in Items 14 and 15 of Article 250 of this Code;
  10)  the date of transfer of ownership of foreign currency - as regards incomes from sale (purchase) of foreign currency.
 5. In the sale by a financial agent of financing services against the cession of a monetary claim, as well as the sale by a new creditor who has obtained the said claim, of financial services, the date of receiving the income shall be defined as the day of the subsequent cession of the given claim or of the debtor's settlement of the given claim. In the case of the cession by the tax paying seller of the commodity (works, services) - of the right of claim to a third person, the date of deriving an income from the cession of the right of claim shall be defined as the day of the parties' signing the act on cession of the right of claim.
 6. As concerns debt and other similar contracts (other debt liabilities including securities) concluded for a term of more than one reporting (tax) period, the income for the purposes of this Chapter shall be recognized as received and shall be included into the composition of appropriate incomes, as on the end of an appropriate report period.
 In the event of termination of a contract (repayment of a debt) prior to the expiry of a report period the income shall be recognized as received and shall be included into the composition of appropriate incomes, as on the date of termination of the contract (repayment of the debt).
 7. The sum difference shall be recognized as an income:
  1)  for a taxpaying seller - as on the date of paying bills receivable concerning acquired goods (works, services), property, property rights and other rights, and in the event of advance payment - as on the date of acquiring goods (works, services), property, property rights and other rights.
  2)  with the buyer taxpayer - as of the date of redemption of the payables for the purchased commodities (works, services), property, property or other rights, and in case of an advance payment - as of the date of purchase of the commodities (works, services), property, property or other rights.
 8. The incomes expressed in foreign currency shall be conversed for the purposes of taxation into roubles at the official exchange rate established by the Central Bank of the Russian Federation, as on the date of recognizing the appropriate income. The claims and liabilities expressed in foreign currency and the property in the form of currency values shall be conversed into roubles at the official exchange rate established by the Central Bank of the Russian Federation, as on the date of transfer of ownership with regard to transactions in said property, termination (execution) of claims and liabilities, and (or) on the last day of a report (tax) period depending on what has happened before.

Article 272. Procedure for Recognising the Outlays When Using the Calculation Method


 1. The outlays accepted for taxation purposes with account taken of the provisions of this Chapter and shall be determined subject to the provisions of Articles from 318 to 320 of this Code shall be recognised as such in the reporting (tax) period to which they refer, regardless of the time of the actual payment out of the monetary funds and (or) of other forms of their coverage.
 Expenses shall be recognised in the accounting (tax) period in which these expenses occur under the terms of transactions.
 Where the terms and conditions of a contract provide for the receipt of incomes within more than one reporting period and handing over of goods (works, services) by stages is not stipulated, the outlays shall be distributed by a taxpayer independently subject to the principle of evenness in recognizing incomes and outlays.
 Taxpayer's outlays which cannot be directly referred to the expenditures made on specific kinds of activity shall be distributed proportionately to the share of the corresponding income in the summary volume of all the taxpayer's incomes.
 2. Recognised as the date of effecting material outlays shall be:
  -  the date of handing over raw and other materials into production - in the part of the raw and other materials falling on the put out commodities (performed works, rendered services);
  -  the date of the taxpayer's signing the act on the acceptance - handing over of the services (works) - as concerns the services (works) of production nature.
 3. Depreciation shall be recognised as the outlays every month, proceeding from the sum of the computed depreciation calculated in accordance with the procedure laid down by Articles 259 and 322 of the present Code.
 4. The outlays on the remuneration of labour shall be recognised as the outlays every month, proceeding from the sum of the outlays on the remuneration of labour computed in conformity with Article 255 of the present Code.
 5. The outlays on the repairs of fixed assets shall be recognised as outlays in the reporting period in which they were actually made, regardless of their remuneration with account taken of the specifics envisaged by Article 260 of the present Code.
 6. The outlays on obligatory and voluntary insurance (on non-state pension security) shall be recognised as outlays in the reporting period in which the taxpayer has actually transferred (handed out from the cashier's office) the monetary funds for making insurance (pension) contributions in conformity with the terms of the agreement. If the terms of the agreement of insurance (of the non-state pension security) envisage the payment of the insurance (pension) contribution in a single-time deposit, the outlays made under the agreements signed for a term of over one reporting period shall be recognised evenly in the course of the term of operation of the agreement.
 7. Recognised as the date of making the extra-realisation and other outlays shall be, unless otherwise established by Articles 261, 262, 266 and 267 of the present Code:
  1)  the date of calculation of the taxes (fees) - for outlays in the form of the sums of the taxes (advance payments of taxes), fees and of other obligatory payments;
  2)  the date of calculation in compliance with the requirements of this Chapter - as regards outlays in the form of allocations to the reserves recognized as outlays in compliance with this Chapter;
  3)  the date of settlements in compliance with the terms and conditions of contracts made or the date of submitting to the taxpayer the documents which serve as a basis for making settlements, or the last day of a report (tax) period - as regards the outlays:
  -  in the form of the sums of commission fees;
  -  in the form of payments to outside organizations for the works carried out (the services rendered) by them;
  -  in the form of rentals (of the leasing payments) for the rented property (for that taken into leasing);
  -  in the form of other similar outlays;
  4)  the date of transfer of the monetary funds from the taxpayer's settlement account (of the payment out from his cashier's office) - for outlays:
  -  in the form of the sums of the paid out travelling allowances;
  -  in the form of compensation for the use of personal cars and motorbikes in business trips;
  5)  the date of approval of an advance report - for outlays:
  -  on business trips;
  -  on the maintenance of the company's transport;
  -  for representation outlays;
  -  for other similar outlays;
  6)  the date of the transfer of ownership with regard to foreign currency and precious metals when making transactions in foreign currency and precious metals, as well as the last day of the current month - as regards outlays in the form of the negative exchange rate difference in respect of the property and claims (liabilities) which cost is expressed in foreign currency, and in the form of the negative revaluation of the cost of precious metals;
  7)  the date of realisation or of other kinds of withdrawal of securities - for the outlays involved in the acquisition of securities, including their cost;
  8)  the date of one's recognition as a debtor, or the date of entry into legal force of a court decision - as regards the outlays in the form of the sums of fines, penalties and (or) other sanctions for breach of contractual or debt liabilities, as well as in the form of the sums of recompense for losses (damage);
  9)  the date of transfer of ownership in respect of foreign currency - as regards the outlays on sale (purchase) of foreign currency.
 8. On loan and other similar agreements (other debt liabilities including securities) concluded for a term of over one reporting period, for the purposes of this Chapter the outlays shall be recognized as effected and shall be included into the composition of the corresponding outlays, as on the end of an appropriate report period.
 In the event of terminating a contract (repaying a debt liability) prior to the expiry of a report period outlays shall be recognized as effected and shall be included into the composition of appropriate outlays, as on the date of terminating the contract (repaying the debt liability).
 9. A sum difference shall be regarded as an outlay:
 for a taxpaying vendor - on the date of repaying bills receivable for sold goods (works, services), property rights, and in the event of an advance payment - on the date of selling goods (works, services), property rights;
 for a taxpaying purchaser - on the date of repaying bills payable for acquired goods (works, services), property, property rights and other rights, and in the event of an advance payment - on the date of acquiring goods (works, services), property, property rights or other rights.
 10. The outlays expressed in foreign currency for the purposes of taxation shall be conversed into roubles at the official exchange rate established by the Central Bank of the Russian Federation, as on the date of recognizing an appropriate outlay. The claims and liabilities expressed in foreign currency, property in the form of currency values shall be conversed into roubles at the official exchange rate established by the Central Bank of the Russian Federation, as on the date of transfer of ownership, when making transactions in such property, of termination (execution) of a liability or claim, and (or) on the last day of the report (tax) period depending on what has happened before.

Article 273. Procedure for Defining the Incomes and Outlays Using the Cash Method


 1. Organisations (safe for banks) shall have the right to define the date of receiving an income (of effecting an expenditure) with the use of the cash method, if over the previous four months the sum of earnings from the sale of commodities (works, services) of these organisations not taking into account value added tax, has not exceeded one million roubles in every quarter.
 2. For the purposes of this Chapter, recognised as the date of deriving an income shall be the day of arrival of the funds onto the accounts in banks and (or) to the cashier's office, and of the receipt of other property (works, services) and (or) of the rights of property, as well as a repayment of a debt with regard to the taxpayer in other way (the cash method).
 3. Recognised as taxpayers' outlays shall be expenditures made after they are actually paid for. For the purposes of this Chapter, seen as payment for commodities (works, services) and (or) for the rights of property shall be the termination of the reciprocal liability by tax paying acquirers of the said commodities (works, services) and of the rights of property to the seller, which are directly connected with the delivery of these commodities (with the performance of works and with rendering services, or with the transfer of the rights of property).
 The outlays shall in this case be recorded in the composition of the outlays, taking into account the following specifics:
  1)  the material outlays, as well as the outlays on the remuneration of labour, shall be recorded in the composition of outlays as at the moment of repaying the indebtedness by way writing off the monetary funds from the taxpayer's settlement account or as at the moment of paying these out of the cashier's office, and if the other method for the repayment of the indebtedness is applied - as at the moment of such repayment. A similar order shall be applied with respect to the payment out of interest for the use of the borrowed funds (bank credits included) and in case of remuneration of the services of third persons. The outlays on the acquisition of raw and other materials shall in this case be recorded in the composition of the outlays as soon as the given raw and other materials are written off to production;
  2)  depreciation shall be recorded in the composition of the outlays in the sums calculated for the reporting (tax) period. It is admissible to record only the depreciation of the depreciated property paid for by the taxpayer which is used in production. A similar order shall be applied with respect to the capitalised outlays stipulated by Articles 261 and 262 of the present Code;
  3)  the outlays on the payment of taxes and fees shall be recorded in the composition of the outlays in the amount of their actual payment by the taxpayer. If there is indebtedness in the payment of taxes and fees, the outlays on its settlement shall be recorded in the composition of the outlays within the limits of the actually settled indebtedness and in those reporting (tax) periods when the taxpayer has been liquidating the said indebtedness.
 4. If a taxpayer who has switched to defining the outlays and expenditures using the cash method has exceeded in the tax period the ultimate amount of the sum of earnings from the sale of commodities (works, services) fixed by Item 1 of the present Article, he shall be obliged to switch to defining the incomes and expenditures using the method of calculation as from the start of the tax period in the course of which such excess has taken place.
 5. Taxpayers defining receipts and expenditures in compliance with this Article for the purposes of taxation shall not record in the composition of receipts and expenditures sum differences, where under the terms and conditions of the transaction a claim (liability) is expressed in conventional monetary units.

Article 274. Tax Base


 1. Seen as the tax base for the purposes of this Chapter is the monetary expression of the profit, defined in conformity with Article 247 of the present Code, which is subject to taxation.
 2. The tax base for the profit taxed in accordance with a rate different from that indicated in Item 1 of Article 284 of the present Code shall be defined by the taxpayer separately. The taxpayer shall keep separate records of receipts and expenditures for the transactions in respect of which in compliance with this Chapter a different procedure for accounting receipts and expenditures is stipulated than the general one.
 3. The taxpayer's incomes and expenditures shall be recorded for the purposes of this Chapter in monetary form.
 4. The incomes received in kind as a result of the sale of commodities (works, services) and of the rights of property (including the commodity barter operations), shall be recorded, if not otherwise provided for by this Code, proceeding from the price of the deal while taking into account the provisions of Article 40 of the present Code.
 5. The extra-sale incomes received in kind shall be recorded when determining the tax base, proceeding from the price of the deal, with account taken of the provisions of Article 40 of the present Code, unless otherwise stipulated by this Chapter.
 6. For the purposes of this Article, the market prices shall be defined in accordance with a procedure similar to that for defining the market prices established by the second paragraph of Item 3, as well as by Items 4-11 of Article 40 of the present Code, as at the moment of sale or of the performance of extra-sale transactions (not including value added tax and excise).
 7. When delineating the tax base, profit subject to taxation shall be defined by the progressive total as from the start of the tax period.
 8. If in the reporting (tax) period the taxpayer has incurred a loss, that is, a negative difference between the receipts, determined in accordance with Chapter, and the expenditures recorded for the purposes of taxation in the procedure provided for by this Chapter, in the given reporting period the tax base shall be recognized as equal to zero.
 The losses incurred by the taxpayer in the reporting (tax) period shall be accepted for taxation purposes in accordance with the procedure and on the terms established by Article 283 of the present Code.
 9. When calculating the tax base, the incomes and outlays referred to the gambling business shall not be recorded in the composition of the taxpayers' incomes and expenditures.
 Taxpayers who are organisations engaged in the gambling business, as well as organisations deriving incomes from an activity referred to the gambling business, shall be obliged to keep a separate record of the incomes and outlays derived from such activity.
 If it is impossible to set apart the outlays of the organisations engaged in the gambling business, they shall be defined proportionately to the share of the organisation's incomes from an activity referred to the gambling business in the total income of the organisation derived from all its activities.
 A similar procedure shall extend to the organizations that have passed to paying the tax on imputed earnings, as well as to the organizations gaining profits from agricultural activities.
 10. Taxpayers applying special tax regimes in conformity with the present Code shall not take into account, when calculating the tax base, the incomes and outlays referred to such regimes.
 11. The specifics of defining the tax base for banks shall be established with account taken of the provisions of Articles 290-292 of the present Code.
 12. The specifics in delineating the tax base for insurers shall be established while taking into account the provisions of Articles 293 and 294 of the present Code.
 13. The specifics in determining the tax base for non-state pension funds shall be established with account taken of the provisions of Articles 295 and 296 of the present Code.
 14. The specifics of delineating the tax base for professional securities market traders shall be established with account taken of the provisions of Articles 298 and 299 of the present Code.
 15. The specifics of determining the tax base for transactions with securities shall be established in Article 280 with account taken of the provisions of Articles 281 and 282 of the present Code.
 16. The specifics in defining the tax base for transactions with the financial instruments of futures deals shall be established with account taken of the provisions of Articles 301-305 of the present Code.

Article 275. Specifics in Defining the Tax Base on the Incomes Derived from the Share Participation in Other Organisations


 The sum of tax on the incomes from the share participation in the activity of organisations (hereinafter, 'the dividends'), shall be defined with account taken of the following provisions.
 1. If the source of the taxpayer's income is a foreign organisation, the sum of tax with respect to the received dividends shall be defined by the taxpayer on his own, proceeding from the sum of the received dividends and from the rate stipulated by Subitem 2 of Item 3 of Article 284 of the present Code.
 Taxpayers receiving dividends from a foreign organisation, including through the permanent representation of a foreign organisation in the Russian Federation, shall have no right to reduce the sum of tax calculated in conformity with this Chapter by the sum calculated and paid up at the place of location of the source of the income, unless otherwise stipulated by an international treaty.
 2. For the taxpayers, not indicated in Item 3 of this Article, in respect of the incomes in the form of dividends, safe for the incomes indicated in Item 1 of this Article, the tax base with regard to the incomes derived from share holdings in other organizations shall be determined by a tax agent subject to the specifics established by this Item.
 If the source of the taxpayer's income is a Russian organisation, the said organisation shall be recognised as a tax agent and shall define the sum of tax taking into account the provisions of the present Item.
 The sum of the tax subject to withdrawal from the incomes of the tax payer receiving the dividends shall in this case be calculated by the tax agent proceeding from the total sum of the tax calculated in accordance with the procedure laid down by the present Item, and from the share of each taxpayer in the total sum of the dividends.
 The total sum of the tax shall be determined as the product of the rate of the tax established by Subitem 1 of Item 3 of Article 284 of this Code, and the difference between the sum of the dividends subject to distribution between shareholders (participants) in the current tax period, less the sum of the dividends subject to payment by the tax agent in compliance with Item 3 of this Article in the current tax period, and the sum of the dividends received by the tax agent proper in the current reporting (tax) period and in the previous reporting (tax) period, if these sums of the dividends have not previously participated in the calculations for determining taxable incomes in the form of dividends. Where the difference gained is negative, a liability to pay the tax shall not arise and the reimbursement from the budget shall not be made.
 3. If the Russian tax organisation pays out dividends to a foreign organisation and (or) to a natural person who is not a resident of the Russian Federation, the tax base for the tax paying receiver of the dividends in every such payment shall be defined as the sum of the paid out dividends, and the rate established by Subitem 2 of Item 3 of Article 284 or by Item 3 of Article 224 of this Code accordingly shall be applied to it.

Article 275.1. Specifics of Determining the Tax Base by the Taxpayers Exercising the Activities Connected with the Use of Objects Belonging to Auxiliary Works and Services


 The taxpayers which include separate subdivisions exercising the activities connected with the use of objects belonging to auxiliary works and services shall determine the tax base for said activities apart from the tax base for other types of activities.
 For the purposes of this Chapter, auxiliary works and services shall comprise truck farms, housing and communal units, socio-cultural objects, training centers and other similar units, works and services engaged in realization of services both for their own workers and for outside persons.
 Housing and communal units shall include housing stock, hotels (safe for tourist's ones), houses and hostels for visitors, exterior improvement objects, artificial constructions, basins, beach constructions and equipment, as well as gas supply, heating and electric power supply units, sections, workshops, bases, repair shops, garages, special machines and equipment, warehouses intended for maintenance and repair of housing and communal servicing units, of socio-cultural objects and of the facilities for sports and physical training.
 Socio-cultural establishments shall comprise health protection facilities, cultural establishments, pre-school establishments for children, rest camps for children, sanatoriums (preventoriums), recreation departments, pensions, facilities for sports and physical training (including tracks, race tracks, stables, tennis courts, fields for playing golf and badminton, rehabilitation centers), non-productive consumer servicing units (bath houses and saunas).
 Where separate subdivisions of a taxpayer incur losses while exercising activities connected with the use of the establishments indicated in this Article, such losses shall be recognized for the purposes of taxation, when the following conditions are met:
  -  if the cost of the services rendered by a taxpayer exercising activities connected with the use of the objects indicated in this Article corresponds to the cost of similar services rendered by specialized organizations exercising similar activities connected with the use of such objects;
  -  if the outlays on the maintenance of housing and communal units, socio-cultural establishments, as well as truck farms, and other similar units, works and services do not exceed ordinary outlays on servicing similar objects by the specialized organizations for which these activities are basic ones;
  -  if the conditions of rendering services by a taxpayer do not essentially differ from the conditions of rendering services by the specialized organizations for which these activities are basic ones.
  -  If at least one of said conditions is not met, a taxpayer shall be entitled to extend the losses incurred by him while exercising the activities connected with the use of units of auxiliary works and services to the term of ten years at most and to direct for the recompense thereof only the profits gained while exercising said types of activities.
 The taxpayers which are town-planning organizations under the laws of the Russian Federation and which include structural subdivisions engaged in the operation of housing stock objects, as well as the objects indicated in Paragraphs Three and Four of this Article, shall be entitled to account for the purposes of taxation the actual outlays on the maintenance of said establishments. The aforementioned outlays for the purposes of taxation shall be recognized within the limits of the normative standards for the maintenance of similar units, works and services endorsed by bodies of local self-government at the location of the taxpayer. Where such normative standards are not endorsed by bodies of local self-government, taxpayers shall be entitled to apply the procedure for determining outlays on the maintenance of these establishments effective for similar objects situated on the given territory and subordinate to said bodies. If the aforementioned establishments are situated on the territory of a municipal formation, other than the one where the directing agency is located, the normative standards endorsed by bodies of local self-government at the location of these establishments shall apply.

Article 276. Specifics of Defining the Tax Base of Participants in an Agreement on the Trust Management of Property


 1. The tax base of participants in an agreement on the trust management of property shall be determined:
 in compliance with Item 3 of this Article, if under the terms and conditions of said agreement the founder of trust management is the beneficiary;
 in compliance with Item 4 of this Article, if under the terms and conditions of said agreement the founder of trust management is not the beneficiary.
 2. For the purposes of this Chapter, into the income of the trust manager there shall not be included the property (property rights) handed over under a contract of trust management of property. The remuneration received by a trust manager within the term of validity of an agreement on the trust management of property shall be his income from sale and shall be taxable in the established procedure. With this, the outlays connected with trust management shall be recognized as outlays of a trust manager, if the agreement on the trust management of property does not provide for the reimbursement of said outlays by the founder of trust management.
 The trust manager is obliged to define monthly in accordance with the progressive total the financial results of the trust management and to report to the founder (beneficiary) the data on the received financial results (for each type of income) so that the founder of trust management (beneficiary) could take these results into account, when determining the tax base.
 3. The incomes of the founder of trust management under a contract of trust management of property shall be included into the composition of his extra-sale incomes.
 The outlays connected with the implementation of an agreement of trust management (including property depreciation, as well as the remuneration of the trust manager) shall be recognized as extra-sale outlays of the founder of trust management.
 4. The incomes of the beneficiary under an agreement of trust management shall be included into the composition of his extra-sale incomes and shall be taxable in the established procedure.
 With this, the outlays connected with the execution of an agreement of trust management of property (safe for remuneration of the trust manager, if said agreement provides for paying the remuneration not at the expense of the decrease of the incomes gained within the framework of the execution of this agreement) shall not be taken into account by the founder of trust management while determining the tax base, but shall be taken into account for the purposes of taxation in the composition of the beneficiary's outlays.
 The losses incurred by the use of property transferred under trust management within the term of validity of such agreement shall not be recognized as the losses of the founder of trust management taken into account for the purposes of taxation in compliance with this Chapter, but shall be recognized as the beneficiary's losses for the purposes of taxation.
 5. In the event of termination of an agreement on trust management, the property (including the property rights) transferred under the trust management may be returned under the terms and conditions of said agreement to the founder of trust management or transferred to other person.
 In the event of the return of property, the founder of trust management shall not gain incomes (incur losses), regardless of the arise of positive (negative) difference between the cost of the property transferred under trust management at the moment of entry into force of the agreement on the trust management of property and at the moment of termination thereof.
 6. The provisions of this Article (safe for the provisions of Paragraph One of Item 2 of this Article) shall not extend to a management company or participants (founders) of an agreement on the trust management of property constituting an isolated property complex - a unit fund.

Article 277. Specifics in Defining the Tax Base on the Incomes Derived When Handing over Property to the Authorized (Pooled) Capital (Fund) of an Organization


 1. When placing the emitted shares (participation shares, partner's shares), the incomes and the outlays of the tax paying emitter, and the incomes and the outlays of the taxpayer acquiring such shares (participation shares, partner's shares) (hereinafter 'the shareholder /participant, partner/'), shall be defined with account taken of the following:
  1)  not recognised as profit (loss) of the tax paying emitter shall be the difference between the nominal cost of the placed shares (participation shares, partner's shares) and the cost of the received property (including the monetary funds) and of the rights of property in the taxpayer's placement of the shares (participation shares, partner's shares) he has emitted;
  2)  not recognised as profit (loss) of the tax paying shareholder (participant, partner) shall be the difference between the cost of the property and of the rights of property contributed as the payment, and the minimum cost of the acquired shares (participation shares, partner's shares).
 With this, the cost of the acquired shares (participation shares, partner's shares) for the purposes of this Chapter shall be recognized as equal to the cost (residual cost) of the contributed property (rights of property), defined subject to the data of tax registration , as on the date of the transfer of ownership with regard to said property (property rights) and with the account taken of additional outlays which for the purposes of taxation shall be recognized as incurred by the transmitting side in the event of such contribution.
 2. When an organisation is liquidated and the property of the liquidated organisation is distributed, the incomes of the tax paying shareholders (participants, partners) of the liquidated organisation shall be defined proceeding from the market price of the property (rights of property), received by them, as at the moment of the receipt of the given property minus the cost of the shares (participation shares, partner's shares), actually paid (regardless of the form of payment) for by the corresponding shareholders (participants, partners) of this organisation.
 3. No profit (loss) recorded for taxation purposes arises with tax paying shareholders (participants, partners) in cases of the reorganisation of the organisation, regardless of the form of this reorganisation.

Article 278. Specifics in Defining the Tax Base for Incomes Received by Participants in a Contract of Simple Partnership


 1. For the purposes of this Chapter, the taxpayer's handing over of the property, including of the rights of property, by way of contributions of the participants in simple partnerships (hereinafter 'the partnership') shall not be recognised as the sale of commodities (works, services).
 2. If any of the participants in the partnership is a Russian organisation or natural person who is a tax resident of the Russian Federation, the incomes and the outlays of such partnership shall be recorded by the Russian participant for the purposes of taxation regardless of the fact on whom the maintenance of the partnership's affairs is imposed in accordance with the agreement.
 3. The participant in the partnership who is recording the incomes and outlays of this partnership for the purposes of taxation shall be obliged to define in accordance with the progressive total by the results of every reporting (tax) period the income of every participant in the partnership proportionately to the share of the corresponding participant of the partnership, established by the agreements, in the income of the partnership derived over the reporting (tax) period from the activity of all the participants in the framework of the partnership. On the sums of the due (distributed) incomes, the participant in the partnership recording the incomes and outlays shall be obliged every quarter, before the 15th day of the month next to the reporting (tax) period, to inform every participant of the partnership of the sums of incomes due (distributed) to every participant in the partnership.
 4. The incomes received from participation in a partnership shall be included in the composition of the extra-sale incomes of tax paying participants in the partnership, and shall be subject to taxation in the order established by the present Chapter. The losses of the partnership shall not be distributed among its participants and shall not be taken into account by them in taxation.
 5. If the agreement of a simple partnership ceases to operate, its participants, when distributing the income from the partnership's activity, shall not correct the incomes they have earlier recorded in the taxation against the incomes they have actually derived when the income from the partnership's activity was distributed.
 6. If the agreement of a simple partnership ceases to operate and the property is returned to the participants in this agreement, the negative difference between the evaluation of the returned property and the estimate in accordance with which this property was earlier handed over under the simple partnership agreement, shall not be recognised as a loss for the purposes of taxation.

Article 279. Specifics in Defining the Tax Base in Cases of Cession (Transfer) of the Right of Claim


 1. If the tax paying seller of the commodity (works, services) who calculates the incomes (outlays) using the method of calculation cedes the right of claim for a debt to a third person before the term of payment fixed in the agreement on the realisation of commodities (works, services) sets in, the negative difference between the income from the realisation of the right of claim for the debt and the cost of the realised commodity (works, services) shall be recognised as the tax payer's loss. In this case, the amount of the loss shall not exceed for the purposes of taxation the sum of interest which the taxpayer would have paid, taking into account the demands of Article 269 of the present Code on the debt liability, equal to the income from the cession of the right of claim, over the period from the date of cession to the date of payment provided for by a contract of sale of goods (works, services). The provisions of this Item shall likewise apply to a taxpaying creditor for passive debts.
 2. If the tax paying seller of commodities (works, services) calculating the incomes (the outlays) by the method of calculation cedes the right of claim for debt to a third person after the term of payment fixed by the agreement on the sale of commodities (works, services) sets in, the negative difference between the income from the sale of the right of claim for the debt and the cost of the sold commodity (works, services) shall be recognised as a loss under the deal on the cession of the right of claim which shall be included in the composition of the tax payer's extra-sale outlays. The loss shall in this case be accepted for the purposes of taxation in the following way:
  -  50 per cent of the sum of the loss shall be included in the composition of the extra-sale outlays as on the date of cession of the right of claim;
  -  50 per cent of the sum of the loss shall be included in the composition of the extra-sale outlays after 45 days from the day of cession of the right of claim.
 The provisions of this Item shall likewise apply to a taxpaying creditor for passive debts.
 3. If a taxpayer who has bought the right of claim for the debt subsequently realises the right of claim, the said transaction shall be considered as sale of financial services. The income (earnings) derived from the sale of financial services shall be defined as the cost of the property due to this taxpayer when he subsequently cedes the right of claim or when the corresponding liability ends. In this case, when defining the tax base, the taxpayer shall have the right to reduce the income he has derived from the sale of the right of claim by the sum of the outlays made on the acquisition of the said right of claim for the debt.

Article 280. Specifics in Defining the Tax Base on Transactions with Securities


 1. The procedure for referring the objects of civil rights to securities shall be established by the civil legislation of the Russian Federation and by the applicable legislation of foreign states.
 The procedure for referring securities to emission ones shall be established by the national legislation.
 If transactions with securities can also be qualified as a transaction with the financial instruments of futures deals, the tax payer shall on his own choose the procedure for the taxation of such transaction.
 2. The taxpayer's incomes from transactions involved in the sale or in some other form of the withdrawal of securities (redemption included) shall be defined proceeding from the sale price or of the other form of withdrawal of a security, as well as from the sum of the accumulated (coupon) income, paid by the purchaser to the taxpayer, and from the sum of the interest (coupon) income paid out to the taxpayer by the issuer (by the bill giver). In this case, into the taxpayer's income from the sale or from another form of the withdrawal of securities shall not be included the sums of interest (coupon) income earlier recorded in the taxation.
 In the event of withdrawal (sale, repayment or exchange) of an investment share of a unit fund which does not circulate on the organized market, the estimated cost of the investment share determined in the procedure established by the laws of the Russian Federation on investment funds shall be recognized as the market price thereof.
 The outlays made on the sale (or on another form of the withdrawal) of securities, including investment shares of a unit fund, shall be defined proceeding from the price of acquisition of the security (including the outlays on the acquisition thereof), from the expenditures on the sale thereof , from the amount of discounts on the estimated cost of investment shares and from the sums of the accumulated interest (coupon) income paid up by the taxpayer to the seller of the security. In this case, into the outlays shall not be included the sums of the accumulated interest (coupon) income earlier recorded in taxation.
 3. For the purposes of this Chapter, securities shall be recognised as circulated on the organised securities market only if the following conditions are simultaneously observed:
  1)  if they are admitted into circulation by any one of the trade organisers who has the right to do so in accordance with national legislation;
  2)  if information on their prices (quotations) is published in the mass media (including electronic), or if it may be supplied by the trade organiser or by another authorised person to any interested person in the course of three years after the date of the performance of transactions with the securities;
  3)  if the market quotation is calculated by them, when this is envisaged by the corresponding national legislation.
 4. Seen as the market quotation of a security for the purposes of this Chapter is the average weighted price of the security in deals made in the course of a trading day through the trade organiser. If the deals with one and the same security were made through two or more trade organisers, the taxpayer shall have the right to choose the market quotation formed by one of the trade organisers, on his own. If the trade organiser does not calculate the average weighted price the average weighted price accepted for the purposes of this Chapter shall be half of the sum of the maximum and minimum price of the deals performed in the course of the trading day through this trade organiser.
 Seen as interest (coupon) income shall be the part of the interest (coupon) income the payment of which is envisaged by the terms of the issue of such security, calculated in proportion to the number of days which have passed from the date of issue of the security or from the date of payment of the previous coupon income to the day of making the deal (to the date of handing over the security).
 5. The market price of securities for the purposes of taxation circulated on the organised securities market shall be recognised the actual price of sale or of another form of the withdrawal of securities, if this price lies in the interval between the minimum and the maximum price of the deals (price interval) with the said security, registered by the trade organizer on the securities market as on the date of carrying out the corresponding deal.
 If deals with one and the same security have been carried out on the said date through two or more trade organisers on the securities market, the taxpayer shall have the right to choose on his own the trade organiser, the values of whose price interval will be used by the tax payer for the purposes of taxation.
 If on the date of performing the deal there is no information on the trade organisers' price intervals, the taxpayer shall accept the price interval in the sale of these securities in accordance with the data supplied by the trade organisers on the securities market for the date of the closest auction which has taken place before the day of carrying out the corresponding deal, even if the auction on these securities was held by the trade organiser only once in the course of the last twelve months. If the trade organiser observes the above procedure, the actual price of the sale or of another form of the withdrawal of the securities in the corresponding price interval shall be accepted for the purposes of taxation as the market price.
 In the event of sale of securities circulating on the organized securities market at the price lower that the minimum price of deals on the organized securities market the minimum price of the deal shall be taken for determining the financial result.
 6. As concerns securities which are not circulated on the organised securities market, for the purposes of taxation shall be accepted the actual price of their sale or of another form of the withdrawal of the given securities if any of the following conditions are fulfilled:
  1)  if the actual price of the corresponding deal lies in the price interval of a similar (identical, homogeneous) security, registered by the trade organiser on the securities market as on the date of making the deal or as on the date of the closest auction which has taken place before the performance of the corresponding deal, if an auction on these securities was held by the trade organiser even once in the course of the last twelve months;
  2)  if the deviation of the actual price of the corresponding deal is within the limit of 20 per cent towards a rise or fall from the average weighted price of a similar (identical, homogeneous) security calculated by the trade organiser on the securities market in conformity with the rules he has established by the results of the auction as on the date of making such deal or as on the date of the closest auction which has taken place before the day of making the corresponding deal, even if an auction on these securities was held by the trade organiser only once in the course of the past twelve months.
 If there is no information on the results of an auction on similar (identical, homogeneous) securities, the actual price of the deal shall be accepted for the purposes of taxation, if the said price differs by no more than 20 per cent from the settlement price of this security, which may be defined as on the date of making a deal with the security, with account taken of the concrete terms of the performed deal, for the specifics of its circulation and for the price of the security, as well as for the other indices, information on which may serve as grounds for such calculation. In particular, to define the settlement price of a share, the cost of the net issuer's assets falling on the corresponding share may be used, and to define the settlement price of a debt security - the market value of the loan interest rate for the corresponding time term in the corresponding currency.
 7. The tax paying share holder selling the shares he has received when the authorised capital of the joint-stock company was augmented, shall define the income as the difference between the sale price and the originally remunerated cost of the share, corrected with account taken of the change in the number of shares as a result of the increase of authorised capital.
 8. The tax base on transactions with securities shall be defined by the taxpayer separately, with the exception of the tax base on the transactions with securities, which shall be defined by professional securities market traders. Taxpayers (with the exception of professional market traders carrying out dealer's activity) shall define the tax base on transactions with the securities circulated on the organised securities market, apart from the tax base on transactions with securities which are not circulated on the organised securities market.
 Professional participants of the securities market (including banks) which are not engaged in dealer's activities, for the purposes of taxation shall determine in their accounting police a procedure for forming the tax base with regard to transactions in the securities circulating on the organized securities market and the tax base with regard to transactions in the securities not circulating on the organized securities market.
 With this, a taxpayer shall independently choose the types of securities (both those circulating on the organized securities market and those not circulating on the securities market) in respect of which other receipts and expenditures related to operation in them, which are determined in compliance with this Chapter, shall be included in the composition of receipts and expenditures while forming the tax base.
 9. In the event of sale or any other withdrawal of securities, a taxpayer shall independently choose one of the following methods of writing off as outlays the cost of withdrawn securities in compliance with the accounting policy accepted for the purposes of taxation:
  1)  in accordance with the prime cost of the acquisitions (FIFO);
  2)  in accordance with the last cost of the acquisitions (LIFO);
  3)  in accordance with the cost of one unit.
 10. Taxpayers who have incurred a loss (losses) from transactions in securities in the previous tax period or in the previous tax periods shall have the right to reduce the tax base received on the transactions in securities in the reporting (tax) period (to put off the said losses onto the future), in the order and on the terms established by Article 283 of the present Code.
 With this, losses from transactions in the securities not circulating on the organized securities market which were incurred in the previous tax period (previous tax periods) may be referred to the decrease of the tax base caused by transactions in such securities which is determined in the reporting (tax) period.
 With this, losses from transactions in the securities circulating on the organized securities market incurred in the previous tax period (previous tax periods) may be referred to the decrease of the tax base caused by transactions in the sale of the given category of securities.
 During a tax period the transfer for the future of the losses incurred in a appropriate reporting period as a result of transactions in the securities circulating on the organized securities market and in the securities not circulating on the organized securities market shall be effected separately for said categories of securities within the limits of the incomes gained from transactions in such securities accordingly.
 The incomes derived from transactions in the securities circulated on the organised securities market cannot be reduced by the outlays or the losses from transactions in the securities not circulated on the organised securities market.
 The incomes derived from transactions in the securities not circulated on the organised securities market cannot be reduced by the outlays or the losses from transactions in the securities circulated on the organised securities market.
 The provisions of the Paragraphs from Two to Six of the present Item shall not be spread to the professional securities market traders engaged in dealer's activity.
 11. The taxpayers (including banks) engaged in the dealer's activities on the securities market, when determining the tax base and transferring losses for the future in the procedure and on the conditions established by Article 283 of this Code, shall form the tax base and shall determine the amount of the losses to be transferred for the future with the account taken of all incomes (outlays) and the sums of losses resulting from business activities.
 During the tax period the carry-forward of damages incurred by the aforesaid taxpayers in a specific accounting period of the current tax period may be effected within the limits of the profit amount resulting from the pursuance of entrepreneurial activity.

Article 281. Specifics in Defining the Tax Base for Transactions in State and Municipal Securities


 When placing state securities of the Russian Federation, state securities of the subjects of the Russian Federation and municipal state securities (hereinafter referred to as state and municipal securities), the incomes declared (established) by the issuer in the form of the rate of interest on the nominal cost of said securities shall be recognized as interest yields , and as regards the securities in respect of which the rate of interest is established, the interest yields on them shall be the incomes in the form of the difference between the nominal cost of a security and the cost of its primary distribution calculated as the weighted average price, as on the date when an issue of the securities in compliance with the established procedure was recognized as distributed.
 In the taxation of the deals involved in the sale or other form of the withdrawal of securities, the price of the issue and of the municipal securities shall be recorded without interest (coupon) income falling on the time of the taxpayer's possession of these securities, the payment of which is envisaged by the terms of the issue of such security.
 The taxation of an interest calculated over the time when the state and municipal security was kept on the taxpayer's balance, shall be effected on the terms established by this Chapter. The earnings from the state and municipal securities included in the price of the deal in whose circulation is included a part of the accumulated coupon interest shall be reduced by the income in the amount of the accumulated coupon income due for the time of the taxpayer's possession of the said security.

Article 282. Specifics in Defining the Tax Base for REPO Deals in Securities


 1. For the purposes of the present Code, interpreted as REPO deals shall be deals involved in the sale (purchase) of emission securities (the first part of REPO), with an obligatory subsequent reverse purchase (sale) of securities of the same issue in the same amount (the second part of REPO) in the time term defined by the agreement at the price fixed by this agreement when concluding the first part of such deal. For the purposes of the present Code, the time term for which REPO deals are concluded shall not exceed six months. The deal may be prolonged in this case for a term not exceeding the number of days from the date of the execution of the deal under the terms of its conclusion until the end of the reporting period.
 2. A REPO transaction shall not change the price of the acquisition of securities or the amount of the accumulated interest (coupon) income as on the date of the first part of REPO for the purposes of the taxation of the incomes from their subsequent sale after the reverse purchase of the securities in the second part of REPO.
 3. The incomes (losses) from the sale of securities in the first part of a REPO transaction shall not be recorded when defining the tax base. The tax base for the interest (coupon) incomes shall be defined in accordance with Items 4, 5 and 7 of the present Article. Taxation of the said incomes shall be effected according to the rates established by Article 284 of the present Code.
 4. For the seller in the first part of REPO, the difference between the price of acquisition of the second part of REPO and the price of sale of the first part of REPO shall be recognised:
  1)  if such difference is positive - as the outlays on the payment out of an interest on the attracted funds which are included in the composition of the outlays with account taken of the provisions envisaged by Articles 265 and 269 of the present Code (for banks - by Article 291 of the present Code);
  2)  if such difference is negative - as the incomes in the form of an interest on the loan represented by the securities which are included into the composition of the outlays in conformity with Article 250 of the present Code.
 5. For the purchaser in the first part of REPO, the difference between the price of sale in the second part of REPO and the price of acquisition in the first part of REPO shall be recognised:
  1)  if such difference is positive - as the incomes in the form of interest on the placed funds, which shall be included in the composition of incomes in conformity with Article 250 of the present Code (for banks - by Article 290 of the present Code);
  2)  if such difference is negative - as the outlays in the form of interest on the loan received in securities which shall be included in the composition of the outlays in the order laid down by Articles 265 and 269 of the present Code.
 6. If on the date of execution of the second part of REPO the deal on the reverse purchase (sale) of securities is not performed or is performed not in full volume, the organisation selling the first part of REPO shall define the income (outlays) from the sale of securities in the part of the securities not redeemed in the second part of REPO, as on the date of execution of the first part of REPO, in the order and on the terms laid down by Article 280 of the present Code. The price of sale of the said securities shall in this case be accepted for taxation purposes with account taken of the provisions of Items 5 and 6 of Article 280 ason the date of sale of such securities.
 The provisions of the Item at hand shall not be applied with respect to securities redeemed after the date of performance of the deal in conformity with the terms of its conclusion but within the framework of the reporting period.
 7. When calculating the difference between the price of sale (acquisition) in the second part of REPO and the price of acquisition (sale) in the first part of REPO defined according to Items 4 and 5 of the present Article, the price of sale (acquisition) in the second part of REPO shall be calculated with account taken of the accumulated interest (coupon) income as on the date of the second part of REPO, increased by the sum of the coupon payment by the issuer (if such has taken place) and reduced by the sum of the accumulated interest (coupon) income as on the date of the first part of REPO.
 8. For the purposes of the present Article, seen as the dates of the first and second parts of REPO shall be the respective dates of the actual transfer of the security. In this case the actual price of sale (the acquisition) of the security shall be applied, both in the first part of REPO and in the second part of REPO, regardless of the market cost of such securities as on the date of the transfer. The provisions of this Item shall not be applied with respect to the securities on which the second part of REPO is not executed (with account taken of the provisions of Item 6 of the present Article).

Article 283. Transfer of Losses to the Future


 1. Taxpayers who have incurred a loss (losses) calculated in conformity with this Chapter in the previous tax period or in the previous tax periods shall have the right to reduce the tax base of the current tax period by the entire sum of the loss they have suffered, or by a part of this sum (to transfer the loss to the future). In this case, the tax base of the current tax period shall be defined taking into account the specifics envisaged by this Article, by Article 275.1 and by Articles 280 and 304 of the present Code.
 2. Taxpayers shall have the right to transfer the loss to the future for the ten years following the tax period in which this loss was incurred.
 Taxpayers shall have the right to transfer onto the current tax period the sum of the loss incurred in the previous tax period. The aggregate sum of the transferred loss shall not in this case exceed in any reporting (tax) period 30 per cent of the tax base calculated in conformity with Article 274 of the present Code.
 The loss which has not been transferred to the closest next year may in a similar order be transferred, either wholly or in part, to the closest next year of the subsequent ten years, while taking into account the provisions of the second paragraph of this Item.
 3. If the taxpayer has incurred losses in more than one tax period, such losses shall be transferred to the future in the order of priority in which they have been incurred.
 4. Taxpayers shall be obliged to keep the documents confirming the volume of the incurred loss in the course of the entire term when he reduces the tax base of the current tax period by the sums of the earlier incurred losses.
 5. If taxpayers stop their activity because of reorganisation, the tax paying legal successor shall have the right to reduce the tax base in the order and on the terms envisaged by this Article by the sum of the losses incurred by the organisations put under reorganisation, prior to the moment of reorganisation.

Article 284. Tax Rates


 1. The tax rate shall be established (unless otherwise envisaged in Items from 2 to 5 of the present Article) in the amount of 24 per cent. In this case:
  -  the sum of the tax, computed in accordance with the tax rate of 5 per cent, shall be entered into the federal budget;
  -  the sum of the tax, computed in accordance with the tax rate of 17 per cent, shall be entered into the budgets of the subjects of the Russian Federation;
  -  the sum of the tax, computed in accordance with the tax rate of 2 cent, shall be entered into the local budgets.
 The laws of the subjects of the Russian Federation may reduce the tax rate, envisaged in the present Item, for individual categories of taxpayers, as concerns the taxes, entered into the budgets of the subjects of the Russian Federation. However, said rate may not be less than 13 per cent.
 2. The rates of tax on the incomes of foreign organisations not connected with activity in the Russian Federation through their permanent representation, shall be established in the following amounts:
  1)  20 per cent - from any kind of incomes, except for those indicated in Subitem 2 of this Item and in Items 3 and 4 of this Article subject to the provisions of Article 310 of this Code;
  2)  10 per cent - from the use, maintenance or letting out (freighting) of ships, aircraft and other mobile transportation facilities or containers (including trailers and auxiliary equipment necessary for transportation) in connection with the performance of international shipments.
 3. Towards the tax base defined in accordance with the incomes derived in the form of dividends shall be applied the following rates:
  1)  6 per cent - on incomes derived in the form of dividends from Russian organisations by Russian organisations and natural persons who are tax residents of the Russian Federation;
  2)  15 per cent - on incomes derived in the form of dividends from Russian organisations by foreign organisations, as well as on incomes received in the form of dividends by Russian organisations from foreign organisations.
 Tax shall be calculated in this case with account taken of the specifics described in Article 275 of the present Code.
 4. To the tax base defined for transactions in the individual kinds of debt liabilities shall be applied the following tax rates:
  1)  15 per cent - on income in the form of interest on state and municipal securities (except for the securities pointed out in Subitem 2 of the present Item), the terms of the issue and the circulation of which envisage the receipt of income in the form of interest;
  2)  zero per cent - on income in the form of interest on the state and municipal bonds floated before January 20, 1997 inclusive, as well as on income in the form of interest on bonds of the state currency bonds loan of 1999, issued when carrying out the novation of the internal state currency loan Series III, issued for the purposes of ensuring the conditions necessary for the regulation of the internal currency debt of the former Union of the Soviet Socialist Republics and of the internal and the external currency debt of the Russian Federation.
 5. The profit derived by the Central Bank of the Russian Federation from the performance of an activity involved in its discharge of the functions stipulated by the Federal Law on the Central Bank of the Russian Federation (the Bank of Russia), shall be levied with tax at a tax rate of 0 (zero) per cent.
 The profit derived by the Central Bank of the Russian Federation from the performance of an activity not involved in its discharge of the functions envisaged by the Federal Law on the Central Bank of the Russian Federation (the Bank of Russia), shall be levied with tax in accordance at the tax rate envisaged by Item 1 of this Article.
 6. The sum of tax calculated in accordance with the tax rates established by Items 2-4 of this Article shall be entered into the federal budget.

Article 285. Tax Period and Reporting Period


 1. Recognised as the tax period for tax shall be the calendar year.
 2. Recognised as reporting periods for tax shall be the first quarter, the half-year and nine months of the calendar year.
 As reporting periods for the taxpayers calculating monthly advance payments reasoning from actually gained profits shall be recognized as one month, two months, three months and so on up to the end of a calendar year.

Article 286. Procedure for the Calculation of Tax and Advance Payments


 1. Tax shall be defined as the percentages part of the tax base corresponding to the tax rate, which shall be defined in conformity with Article 274 of the present Code.
 2. Unless otherwise established by Items 4 and 5 of this Article, the taxpayer shall define the sum of tax by the results of the tax period on his own.
 On the basis of the results of each reporting (tax) period, if not otherwise provided for by this Article, taxpayers shall calculate the sum of the advance payment reasoning from the tax rate and taxable profits calculated as a progressive total from the start of the tax period to the end of the reporting (tax) period. During a report period taxpayers shall calculate the sum of the monthly advance payment in the procedure established by this Article.
 The sum of the monthly advance payment to be made in the first quarter of the current tax period shall be regarded as equal to the sum of the monthly advance payment to be paid by the taxpayer in the last quarter of the previous tax period. The sum of the monthly advance payment to be made in the second quarter of the current tax period shall be regarded as equal to one third of the sum of the advance payment calculated for the first reporting period of the current year. The sum of the monthly advance payment to be made in the third quarter of the current tax period shall be regarded as equal to one third of the difference between the sum of the advance payment calculated on the basis of the results of half a year and the sum of the advance payment calculated on the basis of the results of the first quarter.
 The sum of the monthly advance payment to be made in the fourth quarter of the current tax period shall be regarded as equal to one third of the difference between the sum of the advance payment calculated on the basis of the results of nine months and the sum of the advance payment calculated on the basis of the results of half a year.
 If the sum of a monthly advance payment calculated in such a way is negative or is equal to zero said payments in the appropriate quarter shall not be made.
 The taxpayers shall have the right to switch to the calculation of monthly advance payments proceeding from the actually derived profit subject to the calculation. In this case, the sums of the advance payments shall be calculated by taxpayers proceeding from the tax rate and from the actually derived profit calculated by progressive total as from the start of the tax period and to the end of the corresponding month.
 With this, the sum of the advance payments subject to entry into the budget shall be defined with account taken of the earlier calculated sums of advance payments. The taxpayer shall have the right to switch to making monthly advance payments, proceeding from the actual profit, having notified to this effect the tax body not later than December 31 of the year preceding the tax period in which the transfer to this system of making advance payments is taking place. The system for making advance payments cannot be changed by the taxpayer in the course of the tax period.
 3. Organisations whose incomes from sales defined in compliance with Article 249 of this Code have not exceeded on average three million roubles in every quarter over the preceding four quarters, as well as budgetary institutions, foreign organisations carrying out activity in the Russian Federation through their permanent representation, non-profit organisations deriving no income from the sale of commodities (works, services), the participants in simple partnerships with respect to the incomes they derive from taking part in simple partnerships, the investors in production sharing agreements in the part of incomes derived from the implementation of the said agreements and beneficiaries on the trust management agreements, shall make only quarterly advance payments by the results of the reporting period.
 4. If the taxpayer is a foreign organisation deriving incomes from sources in the Russian Federation not connected with permanent representation in the Russian Federation, the duty to define the sum of the tax, to withhold this sum from the taxpayer's income and to transfer the tax to the budget shall be imposed upon Russian organisations or upon foreign organisations performing an activity in the Russian Federation through permanent representation (upon tax agents), which (who) shall pay out the said income to the taxpayer.
 The tax agent shall define the sum of tax for every payment (transfer) of the monetary funds or for other receipt of the income.
 5. Russian organisations paying out incomes to taxpayers in the form of dividends, as well as in the form of interest on state or municipal securities, subject to taxation in conformity with this Chapter, shall define the sum of tax separately for every one of such tax payers as applied to every payment of the said incomes:
  1)  if the source of the taxpayer's incomes is a Russian organisation, the duty to withhold the tax from the taxpayer's incomes and to transfer it to the budget shall be imposed upon this source of incomes.
 In this case, the tax in the form of advance payments shall be withheld from the taxpayer's incomes in every payment of such income;
  2)  when selling the state and municipal securities whose circulation provides for the recognition as the income, gained by the seller in the form of interest, the sums of accumulated interest yields (accumulated coupon yields), the taxpaying recipient of the yields shall independently calculate and pay the tax on such yields.
 Information on the kinds of securities to which the procedure established by the present Item is applied shall be brought to the taxpayers' attention by the federal executive power body authorised by the Government of the Russian Federation.
 6. Organizations established after the entry of this Chapter into force shall start paying monthly advance payments on the expiry of a complete quarter, as of the date of their state registration.

Article 287. Time Terms and Procedure for the Payment of Tax, and of Tax in the Form of Advance Payments


 1. Tax subject to payment after the expiry of the tax period, shall be paid not later than the deadline fixed for submitting tax declarations for the corresponding tax period by Article 289 of the present Code.
 The advance payments on the basis of the results of the reporting period shall be made not later than the deadline, fixed for submitting tax declarations for the corresponding reporting period.
 The monthly advance payments subject to payment in the course of the reporting period shall be made before the deadline of the 28th of every month of this reporting period.
 Taxpayers calculating their monthly advance payments in accordance with actually derived profit shall make the advance payments not later than the 28th of the month next following the month on the basis of which results the calculation of the tax is made.
 The sums of monthly advance payments paid in the course of the reporting (tax) period by the results of the reporting (tax) period shall be set off when making the advance payments on the basis of the results of the report period. The advance payments on the basis of the results of the reporting period shall be set off against the payment of the tax by the results of the tax period.
 2. The Russian organisation or the foreign organisation performing activity in the Russian Federation through its permanent representation (tax agents) paying out income to a foreign organisation shall with hold the sum of tax from the incomes of this foreign organisation, safe for incomes in the form of dividends and interest on state and municipal securities (in respect of which the procedure established by Item 4 of this Article shall apply), in every payment (transfer) to it of monetary funds or in another receipt of incomes by the foreign organisation, unless otherwise stipulated by the present Code.
 The tax agent shall be obliged to transfer the corresponding sum of tax in the course of three days after the day of payment (transfer) of the monetary funds to the foreign organisation or of another receipt of incomes by the foreign organisation.
 3. The specifics in the payment of tax by taxpayers having set apart subdivisions, shall be established by Article 288 of the present Code.
 4. Tax on incomes paid out to taxpayers in the form of dividends, as well as of interest on state and municipal securities, which is withheld in the payment of the income, shall be transferred to the budget by the tax agent who has effected the payment within ten days from the day of paying out the income.
 Tax on the incomes from the state and municipal securities in circulation where the accumulated coupon (interest) yields are deducted from the price of deals subject to taxation in conformity with Item 4 of Article 284 of the present Code in the receiver of incomes shall be paid to the budget by the tax paying receiver of the income in the course of ten days after the end of the month in which the said income was derived.
 5. The newly created organisations shall make advance payments for the corresponding reporting period on the condition that the earnings from sales have not exceeded one million roubles per month or three million roubles per quarter. If the above restrictions have been exceeded, beginning with the month next to the month in which such an excess has taken place, the taxpayer shall make advance payments in accordance with the order stipulated by Item 1 of this Article subject to the requirements of Item 6 of Article 286 of this Code.

Article 288. Specifics in the Calculation and Payment of Tax by Tax Payers Who Have Set Apart Subdivisions


 1. Tax paying Russian organisations which have set apart subdivisions shall calculate and pay to the federal budget the sums of advance payments, as well as the sums of tax calculated by the results of the tax period at the place of their location without distributing the said sum among the set apart subdivisions.
 2. The advance payments and the sums of tax subject to entry to the revenue part of the budgets of the subjects of the Russian Federation and of the budgets of the municipal entities, shall be paid by tax paying Russian organisations at the place of location of the organisation, as well as at the place of location of each of its set apart subdivisions, proceeding from the share of the profit falling on these set apart subdivisions which shall be defined as the average arithmetical value of the specific weight of an average listed number of workers (of outlays onwage payments) and of the specific weight of the residual cost of the depreciated property of this set apart subdivision, respectively, in the average listed number of workers (in outlays on wage payments) and in the residual cost of the depreciated property defined in conformity with Item 1 of Article 257 of the present Code for the taxpayer as a whole.
 The specific weight of an average listed number of workers and the specific weight of the residual cost of depreciated property shall be defined reasoning from the actual indices of an average listed number of workers (of outlays on wage payments) and the residual cost of the fixed assets of said organizations and their separate subdivisions, as on the end of a report period.
 Taxpayers shall determine on their own which of the indices shall be applied - the average listed number of workers or the sum of the outlays on wage payments. The index chosen by the taxpayer shall remain unchangeable in the course of the tax period.
 Instead of the index of the average listed number of workers, tax payers with a seasonal cycle of work or with other specifics in the activity stipulating the seasonal character of attracting workers, may apply, by agreement with the tax body at the place of its location, the index of the specific weight of the outlays on the remuneration of labour, defined in conformity with Article 255 of the present Code. In this case shall be defined the specific weight of the outlays on the remuneration of labour of every set apart subdivision in the total taxpayer's outlays on the remuneration of labour.
 The sum of the advance payments, as well as the sums of tax subject to entry into the revenue part of the budgets of the subjects of the Russian Federation and of the budgets of the municipal entities, shall be calculated in accordance with the tax rates operating on the territories where the organisation and its set apart subdivisions are situated.
 3. Taxpayers shall calculate the advance payments on the tax, as well as the sums of tax to be entered to the budgets of the subjects of the Russian Federation and to the budgets of the municipal entities at the place of location of the set-apart subdivisions, on his own.
 Taxpayers shall supply information on the sums of the advance payments on the tax, as well as on the sums of tax calculated by the results of the tax period, to his set apart subdivisions, as well as to the tax bodies at the place of location of the set apart subdivisions, not later than the deadline fixed by the present Article for submitting tax declarations for the corresponding reporting or tax period.
 4. Taxpayers shall pay the sums of advance payments and the sums of tax calculated by the results of the tax period to the budgets of the subjects of the Russian Federation and to the local budgets at the place of location of the set apart subdivisions not later than the deadline fixed by Article 289 of the present Code for submitting tax declarations for the corresponding reporting or tax period.
 5. If the taxpayer has a set apart subdivision outside the Russian Federation, the tax shall be subject to payment to the budget with account taken of the specifics established by Article 311 of the present Code.

Article 289. Tax Declaration


 1. Regardless of their duty to pay tax and (or) to make advance payments on the tax, as well as of the specifics in the calculation and payment of the tax, taxpayers shall be obliged, after the expiry of every reporting and tax period, to submit to the tax bodies at the place of their location and at the place of location of every one of the set apart subdivisions, the corresponding tax declarations in the order established by the present Article.
 Tax agents shall be obliged, after the expiry of every reporting (tax) period in which they effected payments to the taxpayer, to submit to the tax bodies at the place of their location the tax calculations in accordance with the procedure defined by this Article.
 2. By the results of the reporting period taxpayers shall submit tax declarations made out in simplified form. Non-profit organisations with which no liabilities arise on the payment of tax shall submit the tax declaration of simplified form after the expiry of the tax period.
 3. Taxpayers (tax agents) shall submit tax declarations (tax calculations) in 28 days at latest, as of the date of the end of the corresponding tax period. The taxpayers calculating the sums of monthly advance payments on the basis of actually received profits shall submit tax declarations within the terms established for making advance payments.
 4. The tax declarations (tax calculations) by the results of the tax period shall be submitted by taxpayers (tax agents) not later than March 28 of the year next to the expired tax period.
 5. The organisation whose composition includes set apart subdivisions shall submit after the end of every reporting and tax period to the tax bodies at the place of its location the tax declaration for the organisation as a whole, with distribution by the set apart subdivisions.

Article 290. Specifics in Defining Banks' Incomes


 1. To banks' incomes, in addition to the incomes envisaged by Articles 249 and 250 of the present Code, shall also be referred incomes from the banking activity stipulated by this Article. The incomes envisaged by Articles 249 and 250 of the present Code shall be defined with account taken of the specifics indicated in the present Article.
 2. For the purposes of this Chapter, to the banks' incomes shall be referred, in particular, the following incomes derived from the performance of banking activity:
  1)  in the form of interest derived from the bank's placement on its own behalf and at its own expense of monetary funds, as well as from granting credits and loans;
  2)  in the form of the payment for opening and keeping the bank accounts of clients, including of correspondent banks (including foreign correspondent banks), and for making settlements on their orders, including commission and other forms of remuneration for transfers, encashment, credit letters and other transactions, for formalising and servicing payment cards and other special means intended for the performance of banking transactions, for giving out excerpts and the other documents, and for the search of assets;
  3)  from the encashment of monetary funds, promissory notes, payment and settlement documents and from the cash servicing of clients;
  4)  from carrying out transactions in foreign currency, in cash and cashless forms, among them commission fees (awards) in the transactions involved in the purchase or sale of foreign currency, including at the expense and on the orders of the client, and from operations with currency values.
 To define incomes of banks from sale (purchase) transactions in foreign currency in a reporting (tax) period there shall be accepted the positive difference between the incomes determined in compliance with Item 2 of Article 250 of this Code and the outlays determined in compliance with Subitem 6 of Item 1 of Article 265 of this Code.
  5)  from transactions involved in the purchase and sale of noble metals and precious stones in the form of the difference between the price of sale and the cost of discounting;
  6)  from transactions involved in granting the bank's guarantees and sureties for third persons, envisaging execution in the monetary form;
  7)  in the form of the positive difference between the sum of funds received from the termination or sale (from subsequent cession) of the right of claim (including that which was earlier acquired) and the cost of discounting of the given right of claim;
  8)  from the depositary servicing of clients;
  9)  from leasing especially equipped premises or safes for keeping documents and valuables;
  10)  in the form of payment for the delivery and shipment of monetary funds, securities and other valuables, as well as the bank's documents (except for encashment);
  11)  in the form of payment for shipment and storage of noble metals and precious stones;
  12)  in the form of the remuneration received by the bank from exporters and importers for the discharge of the functions of currency control agents;
  13)  from transactions involved in the purchase and sale of collection coins in the form of the difference between the price of sale and the price of acquisition;
  14)  in the form of the sums the bank received from returned credits (loans), the losses from whose writing off were earlier recorded in the composition of the outlays which have reduced the tax base, or which were written off at the expense of created reserves, the deductions on whose setting up previously reduced the tax base.
  15)  in the form of the compensation the bank received for making the outlays on remunerating the services of outside organisations involved in the exertion of control over the correspondence of the bars of noble metals received by the bank from natural persons and legal entities, to the standards;
  16)  from the performance of forfeiting and factoring transactions;
  17)  from rendering services connected with the installation and operation of electronic systems of documents circulation between a bank and clients, including systems "client-bank";
  18)  in the form of commission fees (remuneration), when making transactions in currency values;
  19)  in the form of the positive difference resulting from the excess of positive revaluation of precious metals over negative revaluation thereof;
  20)  in the form of the sums of a reestablished reserve against possible losses in respect of loans where the outlays for forming it were included into the composition of outlays in the procedure and on the conditions which are established by Article 292 of this Code;
  21)  in the form of the sums of reestablished reserves against depreciation of securities where the outlays for forming them were included into the composition of outlays in the procedure and on the conditions which are established by Article 300 of this Code;
  22)  the incomes connected with banking activity.
 3. The sums of positive revaluation of funds in foreign currency received as payment for the banks' authorised capitals shall not be included into the bank's incomes.

Article 291. Specifics in Defining Banks' Outlays


 1. To banks' outlays, in addition to the outlays envisaged by Articles 254-269 of the present Code, shall also be referred those made in the performance of banking activity which are envisaged in this Article. The outlays envisaged in Articles 254-269 of the present Code shall be defined taking into account the specifics described by the present Article.
 2. For the purposes of this Chapter, to the banks' outlays shall be referred the outlays made when carrying out banking activity, in particular the following kinds:
  1)  interest on:
  -  contracts on the banks' contribution (deposit) and on other attracted monetary funds of natural persons and legal entities (including of correspondent banks), and likewise foreign ones, including for the use of the monetary funds kept on the banks' accounts;
  -  own debt liabilities (on bonds, deposits and savings certificates, promissory notes, loans or other liabilities);
  -  inter-bank credits, including overdrafts;
  -  the acquired refunding credits, including those acquired on an auction basis, in the order established by the Central Bank of the Russian Federation;
  -  loans and contributions (deposits) in the form of noble metals.
  -  other liabilities of banks with regard to clients, and likewise in respect of the assets deposited by client for settlements relating to letters of credit.
 Interest calculated in conformity with this Item on inter-bank credits (deposits) with a term of up to seven days (inclusive) shall be recorded when defining the tax base, not taking into account the provisions of Item 1 of Article 269 of the present Code, proceeding from the actual time term of operation of the contracts;
  2)  the sums of deductions into the reserve against probable losses on loans subject to reservation in the order established by Article 292 of the present Code;
  3)  commission fees for the services on correspondent relations, including outlays on the cash-settlement servicing of the clients, on opening for them accounts in other banks, on the payment to other banks (including foreign ones) for the cash-settlement servicing of these accounts, on the settlement services of the Central Bank of the Russian Federation, on the encashment of the monetary funds, securities, payment documents, and other similar expenditures;
  4)  the outlays (losses) on (from) operations in foreign currency, made (incurred) in cash and in non-cash forms, including commission fees (awards) in transactions involved in the purchase or sale of foreign currency, including at the expense and on the orders of the client, from transactions in currency values, and the expenditures on management and on protection against currency risks.
 To determine the outlays of banks on transactions of sale (purchase) of foreign currency in a reporting (tax) period there shall be accepted the negative difference between the incomes determined in compliance with Item 2 of Article 250 of this Code and the outlays determined in compliance with Subitem 6 of Item 1 of Article 256 of this Code;
  5)  the losses on transactions involved in the purchase and sale of noble metals and precious stones in the form of the difference between the price of sale and the cost of discounting;
  6)  the bank's outlays on the storage, transportation and control over the correspondence of noble metals in bars and coins to quality standards, outlays on refining noble metals, and the other outlays involved in the performance of transactions with the bars of noble metals and with coins containing noble metals;
  7)  outlays on the transfer of pensions and allowances, as well as the outlays on the transfer of the monetary funds without opening accounts to natural persons;
  8)  outlays on the manufacture and introduction of the payment and settlement means (plastic cards, travellers' cheques and other payment and settlement means);
  9)  sums paid for the encashment of banknotes, coins, cheques and other payment and settlement documents, as well as outlays on packing (including making complete sets of cash), shipment and (or) the delivery of valuables belonging to the credit institution or to its clients;
  10)  outlays on the repairs and (or) restoration of collectors' bags, sacks and other equipment connected with the encashment of money, with the transportation and the storage of valuables, as well as with the acquisition of new and replacement of old bags and sacks which have become unfit for use;
  11)  outlays involved in the payment of the fee for state registration of the mortgage and in the introduction of amendments and addenda to the registration entry on the mortgage, as well as in the notary's certification of the contract of mortgage;
  12)  outlays on renting motor transport facilities for the encashment of earnings and on transportation of banks' documents and goods;
  13)  outlays on renting broker's places;
  14)  outlays on the remuneration of services rendered by cash-settlement and by computer centres;
  15)  outlays connected with the performance of forfeiting and factoring transactions;
  16)  outlays on the guarantees, sureties and acceptances granted to the bank by other organisations;
  17)  commission fees (remuneration) for making transactions in currency valuables, and likewise at the expense and on behalf of clients;
  18)  positive difference resulting from the excess of negative revaluation of precious metals over positive one;
  19)  sums of allocations to the reserve against possible losses on loans indebtedness, where the outlays on forming it are accounted in the composition of outlays in the procedure and on the conditions which are established by Article 292 of this Code;
  20)  sums of allocations to the reserves against depreciation of securities, where the outlays for forming them are accounted in the composition of outlays in the procedure and on the conditions which are established by Article 300 of this Code;
 20.1) the sums of bank insurance contributions, fixed in accordance with the federal law on the insurance deposits of natural persons in the banks of the Russian Federation;
  21)  other outlays involved in banking activity.
 3. The sums of the negative revaluation of funds in foreign currency received by way of payment for the authorised capitals of credit institutions shall not be included in the bank's outlays.

Article 292. Outlays on Forming Banks' Reserves


 1. For the purposes of the present Chapter, the banks shall have the right, in addition to the reserves against risky debts envisaged by Article 266 of the present Code, to set up a reserve against probable losses on loan indebtedness and on the other kinds of indebtedness equated to it (including indebtedness on inter-bank credits and deposits (hereinafter referred to as reserves against possible losses on loan indebtedness) stipulated by this Article.
 The sums of deductions to the reserves against probable losses on the loans, formed in accordance with the procedure established by the Central Bank of the Russian Federation in conformity with the Federal Law on the Central Bank of the Russian Federation (the Bank of Russia), shall be recognised as outlays, while taking into account the restrictions stipulated by this Article.
 When defining the tax base, not taken into account shall be outlays in the form of deductions to the reserves against possible losses on loan indebtedness set up by banks against the indebtedness referred to standard one in accordance with the procedure established by the Central Bank of Russia, as well as the reserves against possible losses on loan indebtedness, created against promissory notes, with the exception of promissory notes of third persons, discounted by banks, on which a protest against non-payment is filed.
 2. Sums of deductions to a reserve against probable losses on loans, set up subject to the provisions of Item 1 of this Article shall be included in the composition of extra-realisation outlays in the course of the reporting (tax) period.
 3. The sums of reserves against probable losses on the loans referred to the bank's outlays and not fully used by the banks in the reporting (tax) period for coverage of the losses incurred on account of the hopeless indebtedness on loans and on the indebtedness equated to loan indebtedness may be put off to the next reporting (tax) period. In this case, the sum of the newly created reserve shall be corrected by the sum of the residual of the reserve of the previous reporting (tax) period. If the sum of the reserve newly created in the reporting (tax) period is less than the sum of the residual of the previous reporting (tax) period, the difference shall be included in the composition of the bank's extra-sale incomes on the last day of the reporting (tax) period. If the sum of the newly created reserve is larger than the sum of the residual of the previous reporting (tax) period, the difference shall be included into the extra-sale outlays of banks on the last date of a reporting (tax) period.

Article 293. Specifics in Defining the Incomes of Insurance Institutions (Insurers)


 1. To the incomes of an insurance institution, in addition to the incomes stipulated in Articles 249 and 250 of the present Code, which are defined taking into account the specifics stipulated by this Article, shall also be referred the incomes derived from insurance activity.
 2. To the incomes of insurance institutions shall be referred, for the purposes of this Chapter, the following incomes from the performance of insurance activities:
  1)  insurance premiums (contributions) on the contracts of insurance, co-insurance and re-insurance. The insurance premiums (contributions) on the contracts of co-insurance shall be included in the composition of the incomes of the insurer (co-insurer) only in the amount of his share in the insurance premium (contribution) fixed in the contract of co-insurance;
  2)  the sums of the reduction (return) of the insurance reserves formed in the previous reporting periods, taking account for changes in the share of the re-insurers in the insurance reserves;
  3)  remunerations and bonuses (the form of the insurer's remuneration on the part of the re-insurer) on contracts of re-insurance;
  4)  remunerations from the insurers on contracts of co-insurance;
  5)  the sums of re-insurers' compensation of the share of the insurance payments on risks handed over into re-insurance;
  6)  the sums of interest on the premium deposits on the risks accepted into re-insurance;
  7)  incomes from the exercise of the right of claim of the insurer (beneficiary) against the persons responsible for inflicted damage which has passed to the insurer in conformity with the currently operating legislation;
  8)  the sums received in the form of sanctions for non-fulfilment of the terms of insurance contracts recognized by a debtor voluntary or on the basis of the court decision;
  9)  remunerations for rendering the services of an insurance agent or broker;
  10)  remunerations received by the insurer for rendering the services of a surveyor (for examination of the property accepted into insurance and for the issue of conclusions on the evaluation of the insurance risk) and of those of an average commissioner (for identifying the reasons for, the character and the amount of the losses in case an insurance accident takes place);
  11)  the sums of insurance premiums (fees) under contracts of reinsurance partially returned in the event of their early termination;
  12)  other incomes derived in the performance of insurance activity.

Article 294. Specifics in Defining the Outlays of Insurance Institutions (Insurers)


 1. In addition to the outlays envisaged by Articles 254-269 of the present Code, to the outlays of an insurance institution shall also be referred those made in the performance of insurance activity which are envisaged by this Article. The outlays envisaged by Articles 254-269 of the present Code shall be defined taking account of the specifics envisaged by the present Article.
 2. For the purposes of this Chapter, to the outlays of insurance institutions shall be referred the following outlays made in the performance of insurance activity:
  1)  the sums of deductions to the insurance reserves (taking into account changes in the share of re-insurers in the insurance reserves) formed on the grounds of the legislation on insurance in the order established by the federal executive power body for supervision over insurance activity;
  2)  insurance payments on contracts of insurance, co-insurance and re-insurance. For the purposes of this Chapter, to insurance payments shall be referred payments of rent, annuities, pensions and other payments envisaged by the terms of the contract of insurance;
  3)  the sums of insurance premiums (contributions) on the risks handed over into re-insurance. The provisions of the present Subitem shall be applied to the re-insurance contracts concluded by Russian insurance institutions with Russian and foreign re-insurers and brokers;
  4)  remunerations and bonuses out under the contract of re-insurance;
  5)  the sums of interest on the premium deposits on the risks handed over into re-insurance;
  6)  remunerations to the co-insurer on contracts of co-insurance;
  7)  the return of part of the insurance premiums (contributions), as well as of the redemption sums under a contract of insurance, co-insurance and re-insurance in the cases stipulated by legislation and (or) the terms of the contract;
  8)  remunerations for rendering services of an insurance agent and (or) insurance broker;
  9)  outlays involved in the payment to organisations or to individual natural persons for services involved in the insurance activity which they have rendered, including:
  -  for actuaries' services;
  -  for medical examination when concluding life and health insurance contracts, if payment for such medical examinations is to be effected by the insurer in accordance with the contracts;
  -  for detective services carried out by organisations which have licences for performing the said activity involved in establishing the justification of the insurance payments;
  -  for the services of specialists (including those of experts, surveyors, average commissioners and lawyers), invited to make an evaluation of the insurance risk, to determine the insurance cost of the property and the sum of the insurance payment to estimate the consequences of the insured accidents and to regulate the insurance payments;
  -  for services involved in manufacturing insurance certificates (policies), strict accounting forms, receipt slips and other such documents;
  -  for the services of organisations involved in carrying out the workers' written orders, involved in the transfer of insurance contributions from wages by way of non-cash settlements;
  -  for the services of public health institutions and of other organisations connected with the issue of references, statistical data, conclusions and other similar documents;
  -  for collector's services;
  10)  other outlays directly involved in insurance activity.

Article 295. Specifics in Determining the Incomes of Non-State Pension Funds


 1. The incomes of non-state pension funds shall be determined separately as concerns the incomes derived from the placement of the pension reserves and those derived from the funds' constituent activities.
 2. To the incomes derived from the placement of the pension reserves of the non-state pension funds in addition to the incomes envisaged by Articles 249 and 250 of the present Code, shall be referred, in particular, the incomes from the placement of the pension reserves funds into securities, from making investments and other deposits stipulated by legislation on non-state pension funds which shall be defined in accordance with the procedure established by the present Code for the corresponding kinds of incomes.
 For the purposes of taxation, income derived from the placement of pension reserves shall be defined as the positive difference between the income received from the placement of pension reserves and the income calculated proceeding from the refunding rate of the Central Bank of the Russian Federation and from the sum of the placed reserve, while taking into account the actual placement under the condition of the placement of the said funds onto the pension accounts.
 3. To the incomes derived from the funds' constituent activities shall be referred, in particular, in addition to the incomes stipulated by Articles 249 and 250 of the present Code:
  -  deductions from income derived from the placement of the pension reserves directed towards the formation of the property intended for providing for the fund's constituent activity, which are made in conformity with legislation on non-state pension funds;
  -  incomes from the placement of property intended for providing for the constituent activities of the funds into securities, and also from making investments and other deposits which shall be defined in accordance with the procedure established by the present Code for the corresponding kinds of incomes.

Article 296. Specifics in Defining the Outlays of Non-State Pension Funds


 1. For the non-state pension funds shall be separately defined the incomes involved in deriving income from the placement of pension reserves and the outlays involved in providing for the constituent activities of these funds.
 2. To the outlays involved in deriving income from the placement of the pension reserves of the non-state pension funds, in addition to the incomes indicated in Articles 254-269 of the present Code (taking into account the restrictions envisaged by the legislation of the Russian Federation on non-state pension security) shall be referred:
  1)  outlays involved in deriving income from the placement of the pension reserves, including the remunerations to the management company, the depositary and professional securities market traders;
  2)  obligatory expenditures involved in storage, maintenance in the working order and evaluation in conformity with the legislation of the Russian Federation of the property into which pension reserves are placed;
  3)  deductions for the formation of the property intended for providing for the performance of these funds' constituent activities in conformity with the legislation of the Russian Federation, recorded in the composition of the outlays.
 3. To the outlays involved in providing for the constituent activity of the non-state pension funds, in addition to the outlays indicated in Articles 254-269 of the present Code (taking account of the restrictions stipulated by the legislation of the Russian Federation on non-state pension security) shall be referred:
  1)  remunerations for rendering services involved in concluding contracts of pension security;
  2)  payments for actuaries' services;
  3)  payment for services involved in manufacturing pension certificates (policies), strict accounting forms, receipt slips and other such documents;
  4)  other outlays directly connected with the activities involved in non-state pension security.

Article 297. Specifics in Defining the Outlays by Organisations of Consumer Cooperation


 Organizations of the consumer cooperation exercising their activities in compliance with the Law of the Russian Federation on Consumer Cooperation (Consumer Societies and Their Unions) in the Russian Federation shall be entitled to include additionally in the outlays on the production and sale of goods (works, services) the following outlays (except for the outlays indicated in Articles from 254 to 265, 268 and 269 of this Code):
  -  deductions for maintaining consumer societies and their unions;
  -  interest paid out on the borrowed funds attracted from partners and other citizens, taking account of the provisions of Article 269 of the Code;
  -  deductions into the fund for the development of consumer cooperation, imposed by consumer cooperation organisations in the amount of up to 4 per cent of the earnings from the sale of commodities (works, services) in the reporting (tax) period.

Article 298. Specifics in Defining the Incomes of Professional Securities Market Traders


 To the incomes of taxpayers who are recognised in conformity with the legislation of the Russian Federation on the securities market as professional securities market traders (hereinafter 'professional securities market traders') shall also be referred, in addition to the incomes stipulated by Articles 249 and 250 of the present Code, incomes derived in the performance of professional activity on the securities market.
 To such incomes, in particular, shall be referred:
  1)  incomes from rendering intermediary and other services on the securities market;
  2)  part of the income arising from the use of clients' funds before the moment of return thereof to the clients in conformity with the contractual terms;
  3)  incomes from rendering services involved in the storage of securities certificates and (or) in recording the rights to securities;
  4)  incomes from rendering depositary services, including the services involved in the supply of information on securities and on keeping a deposit account;
  5)  incomes from rendering services involved in keeping a register of the owners of securities;
  6)  incomes from rendering services directly facilitating the conclusion of civil-legal deals in securities by third persons;
  7)  incomes from rendering consulting services on the securities market;
  8)  incomes in the form of sums of replenished reserves against the devaluation of securities which were earlier accepted as outlays in accordance with Article 300 of the present Code;
  9)  other incomes derived by professional securities market traders from their professional activities.

Article 299. Specifics in Defining the Outlays of Professional Securities Market Traders


 To the outlays of professional securities market traders, in addition to those pointed out in Articles 254-269 of the present Code (taking account for restrictions stipulated by the legislation of the Russian Federation on securities) shall be referred, in particular:
  1)  outlays in the form of contributions to trade organisers and other organisations (including those made in conformity with the legislation of the Russian Federation to non-profit organisations) possessing the corresponding licence;
  2)  outlays made on the maintenance and servicing of trading places of different regimes arising in connection with the performance of professional activity;
  3)  outlays on carrying out an expert examination of the authenticity of the submitted documents, including the forms (certificates) of the securities;
  4)  outlays involved in revealing information on the activity of professional securities market traders;
  5)  outlays on creating and bringing up to a proper sum reserves against the devaluation of securities in keeping with Article 300 of the present Code;
  6)  outlays on participation in the meetings of shareholders held by the issuers of securities or on their orders;
  7)  other outlays directly involved in the activity of professional securities market traders.

Article 300. Outlays Made on Creating Reserves Against Devaluation of Securities by Professional Securities Market Traders Engaged in Dealer's Activity


 Professional securities market traders shall be recognised as performing dealer's activity, if the dealer's activity is stipulated by the corresponding licence issued in the established order to the participant on the securities market.
 The professional securities market traders engaged in dealer's activity, shall have the right to refer to the outlays for taxation purposes deductions to the reserves against the devaluation of securities, if such taxpayers define the incomes and outlays using the method of calculation. In this case, the sums of the replenished reserves against the devaluation of securities, the deductions on whose creation (correction) were earlier taken into account when delineating the tax base, shall be recognised as an income of the said taxpayers.
 The said reserves against the devaluation of securities shall be created (corrected) as in the state at the end of the reporting (tax) period, in the amount of an excess of the prices of acquisition of emission securities circulated on the organised securities market over their market quotation (the design amount of the reserve). Into the price of acquisition of the security for the purposes of this Chapter shall also be included the outlays on its acquisition.
 The reserves shall be created (corrected) with respect to every issue of securities satisfying the above-said demands, irrespective of the change in the cost of the securities of other issues.
 In the sale or in another form of withdrawal of the securities with respect to which the reserve was earlier set up, the deductions on whose creation (correction) were earlier taken into account when delineating the tax base, the sum of such reserve shall be included in the tax payer's incomes as on the date of sale or of withdrawal of the security in any other form.
 If after the end of the reporting (tax) period the sum of the reserve, taking account of the market quotations of the securities as at the end of this period, proves to be insufficient, the taxpayer shall increase the sum of the reserve in the above order, and the deductions for the augmentation of the reserve shall be recorded in the composition of the outlays for the purposes of taxation. If at the end of the reporting (tax) period the sum of the earlier set up reserve taking account of the replenished sums exceeds the design sum, the reserve shall be reduced by the taxpayer (restored) down to the design size with an inclusion of the sum of such restoration into the incomes.
 The reserves against the devaluation of securities shall be created in the currency of the Russian Federation, regardless of the currency of the face value of the security. For the securities nominated in foreign currency, the price of acquisition and the market quotation shall be recalculated into roubles in accordance with the official exchange rate of the Central Bank of the Russian Federation as on the date of the creation (correction) of the reserve.

Article 301. Futures Deals. Specifics in Taxation


 1. For the purposes of this Chapter, seen as the financial instruments of futures deals (of deals with a postponement of the execution) shall be agreements between the participants of futures deals (the parties to a deal) delineating their rights and liabilities with respect to basic assets, including futures, option and forward contracts, as well as agreement of participants of futures deals which do not provide the supply of the basic asset but determine a procedure for mutual settlements between parties to a deal in future depending on the change of the price or other quantitative indicator of the basic asset as compared to the value of said indicator which is determined (or a procedure for determining it is established) by the parties, when making the deal.
 Seen as the basic asset of the financial instruments of futures deals shall be the object of the futures deal (including the foreign currency, securities and other property and the rights of property, interest rates, credit resources, price indices or those of the interest rates, and the other financial instruments of futures deals).
 Interpreted as participants in futures deals shall be Organisations performing transactions with the financial instruments of futures deals.
 2. Considered as the exercise of the rights and duties on a transaction with the financial instruments of futures deals shall be the execution of the financial instrument of futures deals by way of either the delivery of the basic assets, or of making the final mutual settlement on the financial instrument of futures deals, or by way of the performance by the participant in the futures deal of an operation opposite to the earlier performed transaction with the financial instrument of futures deals. For transactions with the financial instruments of futures deals aimed at the purchase of a basic asset, recognised as a transaction of the opposite direction shall be a transaction aimed at the sale of the basic asset, and for a transaction aimed at the sale of the basic asset - a transaction aimed at the purchase of the basic asset. The taxation of transactions involved in the delivery of the basic asset shall in this case be effected in accordance with the order envisaged by Articles 301-305 of the present Code.
 The taxpayer shall have the right to qualify the deal on his own, recognising it as a transaction with the financial instrument of futures deals or as a deal on the delivery of the object of the deal with the postponement of the execution. The criteria for referring the deals, providing for the delivery of the subject of a deal (safe for hedging), to the category of operations with financial instruments of futures deals should be determined by a taxpayer in his accounting policy for the purposes of taxation.
 Seen as the date of completing a transaction with the financial instrument of futures deals shall be the date of the exercise of the rights and liabilities on the transaction with the financial instrument of futures deals.
 3. For the purposes of this Chapter, the financial instruments of futures deals shall be subdivided into financial instruments of futures deals circulated on the organised market, and the financial instruments of future deals not circulated on the organised market. The financial instruments of futures deals shall be recognised as circulated on the organised market if the following conditions are observed:
  1)  the procedure for their conclusion, circulation and execution shall be established by the trade organiser endowed with this right in conformity with the legislation of the Russian Federation or with the legislation of foreign states;
  2)  information on the prices of the financial instruments of futures deals shall be published in the mass media (including electronic), or may be supplied by the trade organiser or by another authorised person to any interested person in the course of three years after the date of making a transaction with the financial instrument of a futures deal.
 4. For the purposes of this Chapter, seen as the variation margin shall be the sum of monetary funds calculated by the trade organiser and paid up (received) by the participants in futures deals in conformity with the rules laid down by the trade organisers.
 5. For the purposes of this Chapter, seen as hedging operations shall be transactions with the financial instruments of futures deals performed for the purposes of compensation for probable losses which may arise as a result of an unfavourable change in the price or in some other index of the object of hedging; in this case, seen as the object of hedging shall be the assets and (or) liabilities, as well as the flows of money connected with the said assets and (or) liabilities, or with the expected deals.
 To confirm the justification of referring transactions with the financial instruments of futures deals to hedging operations, the tax payer shall submit the calculation confirming that the performance of the given transactions leads to a reduction of probable losses (of an under-receipt of the profit) on the deals with the object of hedging.
 The procedure for recording hedging operations shall be defined for the purposes of taxation in this Chapter.
 6. When making by a taxpaying participant of futures deals operations within the framework of the forward contracts providing for the delivery to a foreign organization of a basic asset under the customs treatment of export, the tax bases shall be determined subject to the provisions of Article 40 of this Code.

Article 302. Specifics in the Formation of the Tax Payer's Incomes and Outlays on Transactions with the Financial Instruments of Futures Deals Circulated on the Organised Market


 1. For the purposes of this Chapter, recognised as the taxpayer's incomes from transactions with the financial instruments of futures deals circulated on the organised market which are received in the tax (reporting) period, shall be:
  1)  the sum of the variation margin due to receipt by the taxpayer in the course of the reporting (tax) period;
  2)  the other sums due to receipt in the course of the reporting (tax) period from transactions with the financial instruments of futures deals circulated on the organised market, including by way of settlements on transactions with the financial instruments of futures deals envisaging the delivery of the basic asset.
 2. For the purposes of this Chapter, recognised as the taxpayer's outlays on the financial instruments of futures deals circulated on the organised market which were made in the tax (reporting) period shall be:
  1)  the sum of the variation margin subject to payment by the tax payer in the course of the tax (reporting) period;
  2)  the other sums subject to payment in the course of the tax (reporting) period on transactions with the financial instruments of futures deals circulated on the organised market, as well as the cost of the basic asset handed over under the deals envisaging the delivery of the basic asset;
  3)  the other outlays involved in carrying out operations with the financial instruments of futures deals circulated on the organised market.

Article 303. Specifics in the Formation of the Tax Payer's Incomes and Outlays on Operations with the Financial Instruments of Futures Deals Not Circulated on the Organised Market


 1. For the purposes of this Chapter, recognised as the taxpayer's incomes from transactions with the financial instruments of futures deals not circulated on the organised market shall be:
  1)  the sums of monetary funds due to receipt in the reporting (tax) period by one of the participants in the transaction with the financial instrument of a futures deal when it is executed (completed), or those calculated for the reporting period, calculated depending on the change in the price or in another quantitative index characterising the basic asset, for the period from the date of performance of the transaction with the financial instrument of futures deals until the date of completing the operation with the financial instrument of futures deals, or for the reporting period;
  2)  the other sums due to receipt in the course of the tax (reporting) period on transactions with the financial instruments of futures deals not circulated on the organised market, including by way of settlements on transactions with the financial instruments of futures deals envisaging the delivery of the basic asset.
 2. Recognised as outlays on transactions with the financial instruments of futures deals not circulated on the organised market which were made in the tax (reporting) period shall be:
  1)  the sums of monetary funds subject to payment in the reporting (tax) period by one of the participants in the transaction with the financial instrument of a futures deal if it is executed (completed), or those computed for the reporting period, calculated depending on the change in the price or in another quantitative index characterising the basic asset, for the period from the date of performing the operation with the financial instrument of futures deals until the date of completing the operation with the financial instrument of futures deals, or for the reporting period;
  2)  other sums subject to payment in the course of the tax (reporting) period on transactions with the financial instruments of futures deals not circulated on the organised market, as well as the cost of the basic asset handed over in the deals envisaging the delivery of the basic asset;
  3)  other outlays involved in performing transactions with the financial instruments of futures deals.

Article 304. Specifics in Defining the Tax Base on Operations with the Financial Instruments of Futures Deals


 1. The tax base on transactions with the financial instruments of futures deals circulated on the organised market, and the tax base of transactions with the financial instruments of futures deals not circulated on the organised market shall be computed separately.
 2. The tax base on transactions with the financial instruments of futures deals circulated on the organised market shall be defined as the difference between the sums of the incomes from the said deals with all the basic asset due to receipt for the reporting (tax) period, and the sums of the outlays on the said deals with all the basic assets for the reporting (tax) period. The negative difference shall be recognised, respectively, as the loss from such operations.
 The loss from transactions with the financial instruments of futures deals circulated on the organised market shall reduce the tax base calculated in conformity with Article 274 of the present Code.
 3. The tax base on transactions with the financial instruments of futures deals not circulated on the organised market shall be defined as the difference between the incomes from the said operations with all the basic assets and the outlays on the said transactions with all the basic assets for the reporting (tax) period. The negative difference shall be, respectively, recognised as the losses from such transactions.
 The loss from operations with the financial instruments of futures deals not circulated on the organised market, shall not reduce the tax base defined in conformity with Article 274 of the present Code (with the exception of the cases mentioned in Item 5 of this Article).
 4. The losses on transactions with the financial instruments of futures deals not circulated on the organised market may be referred to the reduction of the tax base, which is formed on transactions with the financial instruments of futures deals not circulated on the organised market, in the subsequent tax periods, in the order established in this Chapter (with the exception of the cases envisaged by Item 5 of this Article).
 5. Under the condition that the hedging operations are formalised taking account of the demands of Item 5 of Article 301 of the present Code, the incomes on such transactions with the financial instruments of futures deals shall increase, and the outlays shall reduce the tax base on other operations with the object of hedging.
 The banks shall have the right to refer to the reduction of the tax base, defined in conformity with Article 274 of the present Code, the losses from transactions with the financial instruments of futures deals not circulated on the organised market, the basic asset of which is foreign currency and which are executed by the delivery of the basic asset.
 6. When delineating the tax base on transactions with the financial instruments of futures deals, the provisions of Items 2-13 of Article 40 of the present Code may be applied only in the cases stipulated by this Chapter.

Article 305. Specifics in the Evaluation of Operations with the Financial Instruments of Futures Deals for the Purposes of Taxation


 1. With respect to the financial instruments of futures deals circulated on the organised market, the actual price of the deal shall be recognised for taxation purposes as the market price, if the actual price of the deal lies in the interval between the minimum and the maximum price of deals (in the price interval) with the said instrument, registered by the trade organiser as on the date of making the deal.
 If the deals on one and the same financial instrument of futures deals were performed through two or more trade organisers, the participant in the futures deals shall have the right to choose on his own the trade organiser who has registered the price interval which will be used for recognising the actual price of the deal as the market price for the purposes of taxation.
 If the trade organiser has no information on the price interval as on the date of concluding the corresponding deal, for the said purposes the data of the trade organiser on the price interval as on the date of the closest auction which was held before the day of making the corresponding deal shall be used.
 2. With respect to the financial instruments of futures deals not circulated on the organised market, for the purposes of taxation the actual price of the deal shall be recognised as the market price if any of the following conditions are noted:
  1)  the price of the corresponding deal lies in the price interval of a similar (homogeneous) financial instrument of futures deals, registered by the trade organiser on the date of making such deal or on the date of the closest auction held before the said date;
  2)  the price of the corresponding deal lies within the scope of 20 per cent towards a rise or fall from an average weighted price of a similar (homogeneous) financial instrument of a futures deal, calculated by the trade organiser in conformity with the rules he has established by the results of the auction as on the date of concluding such deal, or by the results of the closest auction held before the said date.
 If there is no information on the results of the auction on similar (homogeneous) financial instruments of futures deals, the actual price of the deal shall be recognised for the purposes of taxation as the market price, if the actual price of the deal differs by no more than 20 per cent from the settlement price of this financial instrument of futures deals, which in its turn may be defined as on the date of making the futures deal, taking into account the concrete terms of the concluded futures deal, the specifics of the circulation and the price of the basic asset, the level of the interest rates on the monetary funds in the corresponding currency and other indices, information about which can serve as grounds for such computation.

Article 306. Specifics in the Taxation of Foreign Organisations. Permanent Representation of a Foreign Organisation


 1. The provisions of Articles 306-309 of the present Code shall establish the specifics in the calculation of tax by foreign organisations engaged in business activity on the territory of the Russian Federation, if such activity leads to the creation of a permanent representation of the foreign organisation, and the specifics in the calculation of tax by foreign organisations which are not involved in an activity through a permanent representation in the Russian Federation, while deriving an income from sources in the Russian Federation.
 2. Seen as the permanent representation of a foreign organisation in the Russian Federation for the purposes of this Chapter shall be an affiliate, representation, department or bureau, an office, agency or any other set-apart subdivision or other place of activity of this organisation (hereinafter 'the department'), through which the organisation regularly performs its business activity on the territory of the Russian Federation, involved in:
  -  the use of mineral wealth and (or) the use of other natural resources;
  -  the performance of the contract-envisaged works aimed at the construction, installation, assembly, mounting, adjusting, servicing and running of equipment, including entertainment slot-machines;
  -  selling commodities from store-houses situated on the territory of the Russian Federation which are owned or rented by this organisation;
  -  the performance of other works, rendering services and carrying out other kinds of activity, with the exception of that stipulated by Item 4 of this Article.
 3. The permanent representation of a foreign organisation shall be seen as set up from the start of the regular performance of business activity through its department. However, the activity involved in organising such department does not of itself establish a permanent representation. The permanent representation shall stop its existence from the moment of termination of the business activity of the foreign organisation through this department.
 In the case of the use of the mineral wealth or of utilising other kinds of natural resources, the permanent representation of a foreign organisation shall be seen as set up since the earliest of the following dates: the date of coming into force of the licence (the permit) certifying the right of this organisation to the performance of the corresponding activity, or the date of the actual start of such activity. If the foreign organisation performs works or renders services to another person who possesses this licence (permit), or if it comes out as a general contractor for the person possessing such licence (permit) in resolving the questions involved in the formation and the termination of the existence of the permanent representation of this foreign organisation shall be applied a procedure similar to that established by Items 2-4 of Article 308 of the present Code.
 4. The fact of performance by the foreign organisation on the territory of the Russian Federation of an activity of preparatory or auxiliary character in the absence of any sign of a permanent representation stipulated by Item 2 of this Article, cannot be considered as leading to the formation of a permanent representation. Referred to a preparatory or an auxiliary activity shall be, in particular:
  1)  the use of structures exclusively for the purposes of the storage, demonstration and (or) delivery of commodities belonging to this foreign organisation before the start of such delivery;
  2)  keeping stock of commodities belonging to this foreign organisation exclusively for the purposes of their storage, demonstration and (or) delivery before the start of such delivery;
  3)  maintaining a permanent place of activity exclusively for the purposes of purchasing commodities by this foreign organisation;
  4)  maintaining a permanent place of activity exclusively for the collection, processing and (or) dissemination of information for bookkeeping, for marketing or advertising, or for studying the market of commodities (works, services) sold by the foreign organisation, if such activity is not the principal (regular) activity of this organisation;
  5)  keeping a permanent place of activity exclusively for the purposes of signing contracts on behalf of this organisation, if the signing of contracts takes place in conformity with the detailed written instructions from the foreign organisation.
 5. The fact of the foreign organisation's possession of securities and of participation shares in the capital of Russian organisations, as well as of other property on the territory of the Russian Federation in the absence of any sign of a permanent representation envisaged by Item 2 of this Article, is not in itself considered for such foreign organisation as leading to the creation of a permanent representation in the Russian Federation.
 6. The fact of conclusion by the foreign organisation of an agreement of simple partnership or some other agreement presupposing a joint activity of its parties (participants), performed wholly or in part on the territory of the Russian Federation, cannot in itself be considered for the given organisation as leading to the establishment of a permanent representation in the Russian Federation.
 7. The fact of the supply by the foreign organisation of the personnel for work on the territory of the Russian Federation in another organisation in the absence of the signs of a permanent representation, stipulated by Item 2 of this Article, cannot be considered as leading to the creation of a permanent representation of the foreign organisation which has supplied the personnel, if such personnel act exclusively on behalf of and in the interest of the organisation to which it was directed.
 8. A foreign organization's performance of transactions involved in the import to the Russian Federation or in the export from the Russian Federation of commodities, including in the framework of foreign trade contracts, in the absence of the signs of a permanent representation envisaged by Item 2 of this Article, cannot be considered as leading to the formation of a permanent representation of this organisation in the Russian Federation.
 9. The foreign organisation shall be seen as having a permanent representation if this organization delivers from the territory of the Russian Federation the commodities in its possession being a result of processing on the customs territory or under customs control and also if this organisation performs an activity satisfying the signs envisaged by Item 2 of this Article, through a person who, on the grounds of contractual relations with this foreign organisation, represents its interests in the Russian Federation, acts on the territory of the Russian Federation on behalf of this foreign organisation, possesses and regularly exercises the powers for concluding contracts or for coordinating their essential terms on behalf of the given organisation, thus creating the legal consequences for the given foreign organisation (a dependent agent).
 The foreign organisation shall not be seen as having a permanent representation if it performs an activity on the territory of the Russian Federation through a broker, a commission agent, a professional Russian securities market trader or through any other person acting in the framework of his principal (regular) activity.
 10. The fact that the person performing activity on the territory of the Russian Federation is reciprocally dependent on the foreign organisation shall not be considered as leading to the formation of a permanent representation of this foreign organisation in the Russian Federation in the absence of the signs of a dependent agent envisaged by Item 9 of this Article.

Article 307. Specifics in the Taxation of Foreign Organisations Performing an Activity Through a Permanent Representation in the Russian Federation


 1. Recognised as the object of taxation for foreign organisations which perform an activity in the Russian Federation through a permanent representation shall be:
  -  the income derived by the foreign organisation as a result of the performance of an activity on the territory of the Russian Federation through its permanent representation, reduced by the amount of the outlays made by this permanent representation which shall be defined taking account of the provisions of Item 4 of this Article;
  -  the incomes of the foreign organisation from the possession, use and (or) disposal of the property of the permanent representation of this organisation in the Russian Federation minus the outlays involved in deriving such incomes;
  -  the other incomes from the sources in the Russian Federation pointed out in Item 1 of Article 309 of the present Code, referred to the permanent representation.
 2. The tax base shall be delineated as the monetary expression of the object of taxation, established by Item 1 of this Article.
 When delineating the tax base of a foreign non-profit organisation, the provisions of Item 2 of Article 251 of the present Code shall be taken into account.
 3. If the foreign organisation performs on the territory of the Russian Federation an activity of a preparatory and (or) an auxiliary character in the interest of third persons which is leading to the formation of a permanent representation, and if with respect to such an activity no receipt of any remuneration is envisaged, the tax base shall be defined in the amount of 20 per cent from the sum of the outlays of this permanent representation involved in such activity.
 4. If the foreign organisation has on the territory of the Russian Federation more than one department, the activity through which is leading to the establishment of a permanent representation, the tax base and the sum of the tax shall be calculated separately for every department.
 If the foreign organisation performs through such departments an activity in the framework of a single technological process, or in other similar cases in agreement with the Ministry of Taxation of the Russian Federation, such organisation shall have the right to calculate taxable profit connected with its activity through a department on the territory of the Russian Federation, as a whole by the group of such departments (including for all the departments), under the condition that all the departments included in this group apply the same accounting policy for the purposes of taxation. In this case, the foreign organisation shall determine on its own which of the departments shall keep the tax records and submit the tax declarations at the place of location of every department. The sum of tax on the profit subject to payment to the budget in this case shall be distributed between the departments in the general order envisaged by Article 288 of the present Code. The cost of the fixed assets and of the non-material assets, or an average-listed number of the workers (the fund for the remuneration of the workers' labour) not involved in the activity of the foreign organisation on the territory of the Russian Federation through the permanent representation shall not be recorded.
 5. Foreign organisations performing an activity in the Russian Federation through a permanent representation shall apply the provisions envisaged by Articles 280, 283 of the present Code.
 6. Foreign organisations performing an activity in the Russian Federation through a permanent representation shall pay tax according to the rates established by Item 1 of Article 284 of the present Code, with the exception of the incomes listed in Subitems 1 and 2 and in the second paragraph of Subitem 3 of Item 1 of Article 309 or the present Code. The said incomes referred to the permanent representation shall be levied with tax apart from the other incomes, in accordance with the rates established by Subitem 2 of Item 3 and by Item 4 of Article 284 of the present Code.
 7. When into the sum of the foreign organisation's profit are included the incomes from which, in conformity with Article 309 of the present Code, tax has been in fact withheld and transferred to the budget, the sum of the tax subject to payment by this organisation into the budget, into which the sum of the withheld tax was transferred, shall be reduced by the sum of the withheld tax. If the sum of the tax withheld in the reporting period exceeds the sum of the tax for this period, the sum of tax paid in excess shall be subject to return from the budget in conformity with the present Code, or shall be offset against the future tax payments of this organisation.
 8. Foreign organisations performing an activity in the Russian Federation through a permanent representation shall pay the advance payments and tax in the order stipulated by Articles 286 and 287 of the present Code.
 Foreign organisations performing an activity in the Russian Federation shall submit the tax declaration by the results of the tax (reporting) period, as well as the annual report on activity in the Russian Federation in compliance with the form endorsed by the Ministry of Taxation of the Russian Federation, through the permanent representation to the tax body at the place of location of the permanent representation of this organisation in the order and within the time terms established by Article 289 of the present Code.
 If the activity of the permanent representation of the foreign organisation in the Russian Federation is stopped before the end of the tax period, the tax declaration for the last reporting period shall be submitted by the foreign organisation in the course of one month from the day of termination of the activity of this department.

Article 308. Specifics in the Taxation of Foreign Organisations if the Activity Is Performed on a Construction Site


 1. For the purposes of this Chapter, interpreted as construction sites of foreign organisations on the territory of the Russian Federation shall be:
  1)  the place of building new, as well as of reconstruction, expansion, technical re-equipment and (or) repairs of the existing objects of immovable property (with the exception of air and sea vessels, inland navigation ships and space objects);
  2)  the place of building and (or) assembly, repairs, reconstruction, expansion and (or) technical re-equipment of structures, including floating and boring installations, as well as machinery and equipment, whose normal functioning requires a rigid mounting on the foundation or fastening to the construction elements of the buildings, structures or floating facilities.
 2. When identifying the term of existence of the construction site for the purposes of calculating tax, and also of putting the foreign organisation onto the records with the tax bodies, works and other operations whose duration falls into this term, shall embrace all the kinds of preparatory, building and (or) mounting works, including those involved in building approach lines, communications, electric cables, drainage and other objects of the infrastructure, with the exception of the objects of infrastructure initially developed for other purposes not connected with the given construction site.
 If a foreign organisation, while being a general contractor, gives orders for the performance of a part of the contractual works to other persons (subcontractors), the period of time spent by the subcontractors on carrying out the works shall be seen as the time thus expended by the general contractor himself. This provision shall not be applied with respect to the period of works which the subcontractor performs under direct contracts with the customer (the builder) and which are not included in the volume of works entrusted to the general contractor, with the exception of those cases when these persons and the general contractor are reciprocally dependent persons in conformity with Article 20 of the present Code.
 If the subcontractor is a foreign organisation, his activity on this construction site shall also be considered as creating a permanent representation of the subcontractor organisation.
 The given provision shall be applied to Subcontractor organisations whose activity comprises in total not less than 30 days, under the condition that the general contractor has a permanent representation.
 3. For the purposes of taxation, seen as the beginning of the existence of the construction site shall be the earliest of the following dates: the date of signing an act on handing over the site to the contractor (an act on admitting the subcontractor's personnel to the performance of his part of the total volume of works), or the date of the actual start of the works.
 Seen as the end of the existence of the construction site shall be the date of the customer's (builder's) signing an acceptance act on the object or on the complex of works envisaged by the contract. Seen as the end of the subcontractor's works shall be the date of signing the act on the acceptance of works by the general contractor. If the acceptance act was not formalised or if the works have in fact ended after signing such act, the construction site shall be seen as having stopped its existence (the subcontractor's works shall be seen as completed) on the date of the actual end of the preparatory, building or mounting works included in the volume of works of the corresponding person on the given construction site.
 4. The construction site shall not stop its existence if the works on it are stopped only for a time, except for cases of the conservation of the construction object for a term of over 90 days by the decision of the federal executive power bodies, of the corresponding state power bodies of the subjects of the Russian Federation, or of the local self-government bodies adopted within the scope of their competence, or as a result of an impact of force majeur circumstances.
 If the works on the construction object are continued or resumed after an interval in the works when the act mentioned in Item 3 of this Article, is signed, the term of performance of the continued or resumed works and of the interval between the works shall be added to the total term of the existence of the construction site only if:
  1)  the territory (water area) of the resumed works is the territory of the earlier stopped works or that closely adjoining it;
  2)  the continued or resumed works on the object are entrusted to a person who has earlier performed the works on this construction site, of if the new and the former contractors are reciprocally dependent persons. If the continuation or the resumption of the works is connected with the construction or mounting of a new object on the same construction site or with an extension of the earlier completed object, the term of performance of such continued or resumed works and of the interval between the works shall also be added to the total term of existence of the construction site.
 In all other cases, including the performance of repairs, reconstruction or technical re-equipment of an object which was earlier handed over to the customer (builder), the term of performance of the continued or resumed works and the interval between the works shall not be added to the total term of existence of the construction site, started with the works on the earlier commissioned object.
 5. The construction or mounting of such objects as roads, viaducts and channels, or as the laying down of communications in the course of whose performance the geographical place of their location changes, shall be considered as an activity performed on one construction site.

Article 309. Specifics in the Taxation of Foreign Organisations Not Performing an Activity Through a Permanent Representation in the Russian Federation but Deriving Incomes from the Sources in the Russian Federation


 1. The following kinds of incomes received by foreign organisations, which are not connected with its business activity in the Russian Federation, shall be referred as the foreign organisation's incomes derived from the sources in the Russian Federation and shall be subject to levying with tax to be withheld from the source of the payment from the incomes:
  1)  the dividends paid out to foreign organisations who are shareholders (partners) of Russian organisations;
  2)  the incomes received as a result of the distribution in favour of foreign organisations of the profit or of the property of organisations, of other persons or of their associations, including in cases of their liquidation (taking account for the provisions of Items 1 and 2 of Article 43 of the present Code);
  3)  the interest income from any kind of debt liabilities, including bonds with the right of participation in the profits and convertible bonds, including:
  -  the incomes received from the state and municipal emission securities, the terms of whose issue and circulation envisage the receipt of incomes in the form of interest;
  -  the incomes on other debt liabilities of Russian organisations not pointed out in the second paragraph of the present Sub-item.
  4)  the incomes from the use in the Russian Federation of the rights to the objects of intellectual activity. To such incomes, in particular, shall be referred any kinds of payments received by way of compensation for the use or for granting the right to the use of any author's copyright to the works of literature, art or science, including cinema films and films or recordings for television or radio broadcasting programmes, for the use (for granting the right to use) of any patents, trade marks, drafts or models, of plans, of secret formulas or processes, or for the use (for granting the right to use) of information concerning industrial, commercial or scientific experiences;
  5)  the incomes from sale of stocks (partner shares in the capital) of Russian organisations over 50 per cent of whose assets consists of immovable property situated on the territory of the Russian Federation, as well as of the financial instruments derivative from such stocks (partner shares). With this, the incomes from the sale on foreign exchanges (through foreign trade organisers) of the securities or of the financial instruments derivative from them which are circulated on these exchanges shall not be recognised as incomes from sources in the Russian Federation;
  6)  the incomes from the sale of immovable property situated on the territory of the Russian Federation;
  7)  incomes from letting out or subletting property used on the territory of the Russian Federation, including the incomes from leasing operations and from letting out or subletting sea-going ships and aircraft or transport facilities, as well as containers used in international shipments. With this, incomes from the leasing operations connected with acquisition and use of the subject of leasing by the recipient of lease shall be calculated reasoning from the total amount of leasing payment less the reimbursement of the cost of the lease property (when it is granted out on lease) to the grantor of lease;
  8)  incomes from international shipments.
 Seen as international shipments shall be any kinds of shipments effected by a sea-going ship, river boat or air vessel, by a motor transport vehicle or by rail transport, with the exception of cases when the shipment is effected exclusively between the points situated outside of the Russian Federation;
  9)  the fines and penalties for violating contractual obligations by Russian persons, state bodies and (or) the executive bodies of local self-government;
  10)  other similar incomes.
 2. Incomes received by foreign organisations from the sale of commodities, of the other property save indicated in Subitems 5 and 6 of Item 1 of this Article, as well as of property rights from the performance of works and rendering services on the territory of the Russian Federation, which do not lead to the formation of a permanent representation in the Russian Federation, shall not be subject to taxation in conformity with Article 306 of the present Code.
 The re-insurance premiums and bonuses paid out to the foreign partner shall not be recognised as incomes from sources in the Russian Federation.
 3. The incomes listed in Item 1 of this Article shall be seen as the object of levying with tax, irrespective of the form in which such incomes are received, in particular, of whether they are received in kind, by the settlement of the liabilities of this organisation, in the form of remitting its debt or of offsetting the claims to this organisation.
 4. When delineating the tax base on the incomes pointed out in Subitems 5 and 6 of Item 1 of this Article, from the sum of such incomes may be deducted the outlays in accordance with the procedure envisaged by Articles 268, 280 of the present Code.
 The said outlays of the foreign organisation shall be taken into account when defining the tax base, if by the date of payment out of these incomes at the disposal of the tax agent withholding the tax from such incomes in conformity with this Article, there is documented data on such incomes submitted by this foreign organisation.
 5. The tax base for the incomes of foreign organisations subject to taxation in conformity with this Article, and the sum of tax withheld from such incomes shall be computed in the currency in which the foreign organisation received such incomes. The outlays made in a different currency shall be computed in the same currency in which the income was received, in accordance with the official exchange rate (cross-rate) of the Central Bank of the Russian Federation as on the date of making such outlays.
 6. If the founder or the beneficiary under a contract of trust management is a foreign organisation having no permanent representation in the Russian Federation, while the trusted manager is a Russian organisation or a foreign organisation performing its activity through a permanent representation in the Russian Federation, the tax from the incomes of such founder or of such beneficiary obtained in the framework of the trust management, shall be withheld and transferred to the budget by the trust manager.

Article 310. Specifics in the Calculation and Payment of Tax on the Incomes Derived by a Foreign Organisation from Sources in the Russian Federation Withheld by the Tax Agent


 1. Tax on the incomes received by a foreign organisation from sources in the Russian Federation shall be calculated and withheld by the Russian organisation or by the foreign organisation performing an activity in the Russian Federation through a permanent representation which pay out the income to the foreign organization in every payment of the incomes indicated in Item 1 of Article 309 of this Code with the exception of the cases envisaged by Item 2 of the present Article, in the currency of the payment of the income.
 Tax from the kinds of incomes indicated in Subitem 1 of Item 1 of Article 309 of the present Code shall be calculated in accordance with the rate envisaged by Subitem 2 of Item 3 of Article 284 of the present Code.
 Tax from the kinds of incomes indicated in the second paragraph of Subitem 3 of Item 1 of Article 309 of the present Code shall be calculated in accordance with the rate envisaged by Item 4 of Article 284 of the present Code.
 The tax from the kinds of incomes indicated in Subitem 2, Paragraph Three of Subitem 3 and in Subitems 4 and 7 (insomuch as they relate to letting and subletting property used on the territory of the Russian Federation, including that used in leasing operations), 9 and 10 of Item 1 of Article 309 of the present Code shall be calculated in accordance with the rates envisaged by Subitem 1 of Item 2 of Article 284 of the present Code.
 The tax from the kinds of incomes listed in Subitems 7 (insomuch as it relates to the incomes from letting and subletting of sea-going ships, aircraft and other movable transport means or containers used in international carriage) and 8 of Item 1 of Article 309 of the present Code shall be calculated in accordance with the rate envisaged by Subitem 2 of Item 2 of Article 284 of the present Code.
 The tax from the kinds of incomes indicated in Subitems 5 and 6 of Item 1 of Article 309 of the present Code shall be calculated taking account of the provisions of Item 2 and 4 of the said Article, in accordance with the rates envisaged by Item 1 of Article 284 of the present Code. If the outlays mentioned in Item 4 of Article 309 of the present Code are not recognised as outlays for the purposes of taxation, the tax from such incomes shall be computed according to the rates envisaged by Subitem 1 of Item 2 of Article 284 of the present Code.
 The sum of tax withheld from the incomes of foreign organisations in conformity with this Item shall be transferred by the tax agent to the federal budget simultaneously with the payment out of the income, either in the currency of the payment out of this income, or in the currency of the Russian Federation, in accordance with the official exchange rate of the Central Bank of the Russian Federation as on the date of the transfer of the tax.
 If the tax is paid out to the foreign organisation in kind or in another non-monetary form, including in the form of making mutual offsets, or if the sum of the tax subject to withholding exceeds the sum of the foreign organisation's income received in monetary form, the tax agent shall be obliged to transfer the tax into the budget in the computed sum, having reduced in the proper order the income of the foreign organisation received in non-monetary form.
 2. The calculation and withholding of the sum of tax from incomes paid out to foreign organisations shall be effected by the tax agent on all the kinds of incomes pointed out in Item 1 of Article 309 of the present Code, in all cases when such incomes are paid out, with the exception of the cases when:
  1)  the tax agent is notified by the receiver of the income that the paid out income refers to the permanent representation of the receiver of the income in the Russian Federation and that at the disposal of the tax agent is the copy of the certificate certified by a notary on the receiver of the income being put onto the records in the tax bodies, formalised not earlier than in the preceding tax period;
  2)  with respect to the income paid out to the foreign organisation, Article 284 of the present Code envisages the tax rate of 0 per cent;
  3)  incomes are paid out and received from production sharing agreements if the legislation of the Russian Federation on taxes and fees envisages relief of such incomes from withholding the tax in the Russian Federation as they are transferred to foreign organisations;
  4)  incomes are paid out which in conformity with international treaties (agreements) are not levied with tax in the Russian Federation, under the condition that the foreign organisation presents to the tax agent the confirmation, envisaged by Item 1 of Article 312 of the present Code. In this case, the payment of the incomes by Russian banks on transactions with foreign banks does not require confirmation of the fact of the permanent place of location of the foreign bank in the state with which an international treaty (agreement) is signed regulating the questions of taxation, if such place of location is confirmed by information supplied in generally accessible information hand-books.
 3. In the event of paying out by the tax agent to a foreign organization of the incomes which are taxable under international treaties (agreements) in the Russian Federation at reduced rates, the calculation and withholding of the tax from incomes shall be effected by a tax agent at appropriate reduced rates, provided that a foreign organization presents to the tax agent the confirmations stipulated by Item 1 of Article 312 of this Code. With this, in the event of paying out by Russian banks of incomes from operations with foreign banks, the confirmation of the fact of a foreign bank's permanent location in a state, with which an international treaty (agreement) regulating taxation matters is made, shall not be necessary, if such location is confirmed by the data from international reference-books open to general use.
 4. The tax agent shall submit by the results of the reporting (tax) period, within the time terms fixed for the presentation of the tax settlements by Article 289 of the present Code, information on the sums of incomes paid out to foreign organisations and of taxes withheld for the previous reporting (tax) period to the tax body at the place of its location in accordance with the form established by the Ministry of Taxation of the Russian Federation.

Article 311. Elimination of Double Taxation


 1. The incomes received by the Russian organisation from sources outside the Russian Federation shall be taken into account when delineating its tax base. The said incomes shall be recorded in full volume taking account of the outlays made both in the Russian Federation beyond its boundaries.
 2. In delineating the tax base, the outlays made by the Russian organisation in connection with the receipt of incomes from sources outside the Russian Federation shall be deducted in the order and in the amount established by this Chapter.
 3. The sums of tax paid out in conformity with the legislation of foreign states by the Russian Federation, shall be set off when this organisation pays tax in the Russian Federation. The sum of the set off sums of the taxes paid outside the Russian Federation cannot exceed the sum of the tax subject to payment by this organisation in the Russian Federation.
 The offsetting is effected under the condition that the tax payer submits the document confirming the payment (withholding) of the tax outside the Russian Federation: for the taxes paid by the organisation itself - those certified by the tax body of the corresponding foreign state, and for taxes withheld in conformity with the legislation of foreign states or with an international agreement by the tax agents - the confirmation by the tax agent.
 The confirmation indicated in this Item shall be valid within the tax period in which it was submitted to the tax agent.

Article 312. Special Provisions


 1. When applying provisions of international treaties of the Russian Federation, the foreign organisation shall submit to the tax agent, paying out the income, confirmation of the fact that the foreign organisation has a permanent place of location in the state with which the Russian Federation has signed an international treaty (agreement), regulating the questions of taxation which shall be certified by a competent body of the corresponding foreign state. Where the given confirmation is in a foreign language, its translation into Russian shall be likewise submitted to the tax agent.
 When the foreign organisation having the right to the receipt of income submits the confirmation mentioned in Item 1 of this Article to the tax agent, paying out the income before the date of the payment out of the income with respect to which a privileged regime of taxation is envisaged by the international treaty of the Russian Federation, with respect to such income is applied relief from withholding the tax from the source of payment, or the tax from the source of the payment is withheld at a reduced rate.
 2. Return of excessively withheld tax on incomes paid out earlier to foreign organisations with respect to which international treaties of the Russian Federation, regulating the questions of taxation, envisage a special taxation regime, shall be effected under the condition that the following documents are submitted:
  -  an application for the return of the withheld tax, made out in accordance with the form established by the Ministry of Taxation of the Russian Federation;
  -  a confirmation of the fact that at the moment of the payment out of the income this foreign organisation had its permanent place of location in a state with which the Russian Federation has concluded an international treaty (agreement) regulating the questions of taxation which shall be certified by the competent body of the corresponding foreign state;
  -  the copies of the agreement (or of another document), in conformity with which income is paid out to the foreign legal entity, and the copies of the payment documents confirming the transfer of the sums of the tax, subject to return, to the budget.
 If the above documents are compiled in a foreign language, the tax body shall have the right to demand that their translation into Russian also be submitted. No notary's certification of the contracts, payment documents or their translation into Russian shall be required. And no other documents, except for the above-listed, shall be demanded.
 The application for the return of the sum of taxes earlier withheld in the Russian Federation, as well as the other documents listed in this Item, shall be submitted by the foreign receiver of the income to the tax body at the place of the tax agent's being put onto records within three years from the moment of the end of the tax period in which the tax was paid out.
 Return of tax earlier levied (and paid up) shall be effected by the tax body at the place of registration of the tax agent in the currency in which this tax was withheld and transferred to the budget by the tax agent, within a month's term from the day of submitting the application and the other documents mentioned in this Item.

Article 313. Tax Records. General Provisions


 The taxpayers shall calculate the tax base by the results of every reporting (tax) period on the grounds of the data of the tax records.
 Tax recording shall be seen as the system for summing up information for defining the tax base for tax on the grounds of the data from the basic documents grouped in accordance with the procedure stipulated by the present Code.
 Where in bookkeeping registers there is not enough information for determining the tax base in compliance with the requirements of this Chapter, the taxpayer shall be entitled to enter independently additional requisite elements to bookkeeping registers applied, thus forming taxation registers, or to keep independent taxation registers.
 Tax recording shall be effected for the purpose of accumulating complete and authentic information on the procedure for recording for the purposes of taxation the economic operations performed by the taxpayer in the course of the reporting (tax) period, as well as for supplying with information the internal and external users for exerting control over the correctness of the calculation, over the fullness and timeliness of the calculation and over the payment of tax into the budget.
 The system of tax recording shall be organised by the taxpayer on his own, proceeding from the principle of the successive application of the norms and rules of tax recording, that is, it shall be applied consecutively from one tax period to another. The procedure for keeping the tax records shall be established by the taxpayer in the accounting policy for the purposes of taxation to be approved by the corresponding Order (Direction) of the manager. The tax and other bodies shall not be empowered to establish for taxpayers obligatory forms of tax accounting documents.
 The taxpayer shall change the procedure for recording individual economic operations and (or) objects for the purposes of taxation in cases of changes in legislation or of the applied methods for recording. Decisions on any changes in the accounting policy for the purposes of taxation in the event of changing applied methods for recording shall be taken as of the start of a new tax period, and in the event of changes in the legislation on taxes and fees it shall be done no earlier than from the moment of entry into force of changed rules of said legislation.
 If the taxpayer has begun to perform any new kinds of activity, he shall also be obliged to define and to reflect in the accounting policy for the purposes of taxation the principles and the procedure for reflecting these kinds of activity for taxation purposes.
 The data of tax recording shall reflect the procedure for the formation of the sum of the incomes and outlays, the way of determining the share of the outlays recorded for the purposes of taxation in the current tax (reporting) period, the sum of the residual of the outlays (losses) which shall be referred to the outlays in the next tax periods, the order of accumulation of the sums of the set up reserves, as well as the sum of indebtedness by settlements with the budget on the tax.
 Seen as confirmation of the data of the tax records shall be:
 1. the basic accounting documents (including a reference note from the accountant);
 2. the analytical tax recording registers;
 3. the calculation of the tax base.
 The forms of analytical tax recording registers for determining the tax base which are the documents for the tax recording shall contain the following requisites:
  -  the name of the register;
  -  the period (the date) of compilation;
  -  the operation's measuring indices in kind (if this is possible) and in the monetary expression;
  -  the names of the economic operations;
  -  the signature (deciphering of the signature) of the person responsible for compiling the said registers.
 The content of the data of the tax recording (including the data from the basic documents) shall be seen as a tax secret. The persons who have access to the information contained in the data of the tax records shall be obliged to keep tax secrets. They shall be held responsible for divulging it in conformity with the effective legislation.

Article 314. Analytical Tax Recording Registers


 Analytical registers of tax records shall be seen as consolidated forms for the systematisation of the data of tax recording for the reporting (tax) period, grouped in accordance with the demands of this Chapter, without distribution (reflection) by business accounting accounts.
 The data of the tax records shall be seen as the data which is recorded in the development tables, the accountant's reference notes and other taxpayer's documents which arrange information on the objects of taxation into groups.
 The formation of the tax recording data presupposes continuity in reflecting in chronological order the objects of recording for the purposes of taxation (including operations whose results are recorded in several reporting periods or are transferred to several years).
 Analytical accounting of the data of tax recording shall be organised by the taxpayer so that it shall reveal the procedure of the formation of the tax base.
 Analytical tax recording registers are intended for the systematisation and accumulation of information contained in the basic documents accepted for recording, and of the analytical data of the tax records for reflecting them in the calculation of the tax base.
 The tax recording registers shall be kept in accordance with special forms on paper carriers, in electronic form and (or) on any machine-readable carriers.
 The forms of the tax recording registers and the way of reflecting in them the analytical data of the tax records and of the data of the basic documents shall be elaborated by the taxpayer on his own and shall be established in the Appendices on the organisation's accounting policy for the purposes of taxation.
 The correctness of reflecting the economic operations in the tax recording registers shall be guaranteed by the persons who have compiled and signed them.
 During the storage of the tax recording registers their protection from unsanctioned corrections shall be ensured.
 The correction of mistakes in the tax recording register shall be justified and confirmed with the signature of the responsible person who has made the correction, with an indication of the date and with the substantiation of the effected correction.

Article 315. Procedure for Making the Calculation of the Tax Base


 The tax base for the reporting (tax) period shall be calculated by the taxpayer on his own in conformity with the norms established by the present Chapter, proceeding from the data of the tax records, by progressive total from the year's start.
 The calculation of the tax base shall contain the following data:
 1. The period for which the tax base is defined (from the start of the tax period by progressive total).
 2. The sum of the incomes from sales received in the reporting (tax) period, including:
  1)  the earnings from the sale of commodities (works, services) of self production, as well as the earnings from sale of property and of rights of property, with the exception of the earnings mentioned in Subitems 2 - 7 of this Item;
  2)  the earnings from the sale of securities not circulated on the organised market;
  3)  the earnings from the sale of securities circulated on the organized market;
  4)  the earnings from the sale of purchased commodities;
  5)  the earnings from the sale of the financial instruments of futures deals not circulated on the organised market;
  6)  the earnings from the sale of basic assets;
  7)  the earnings from the sale of commodities (works, services) of servicing production and economies.
 3. The sum of the outlays made over the reporting (tax) period, minus the sum of the incomes from sale, including:
  1)  the outlays on the output and sale of commodities (works, services) of self manufacture, as well as the outlays made on the sale of the property and of the rights of property, with the exception of the outlays mentioned in Subitems 2 - 6 of this Item.
 The total sum of the outlays shall be reduced by the sums of the residuals of the production in progress, of the residuals of products in the store-house and of products shipped but not sold as at the end of the reporting (tax) period, identified in conformity with Article 319 of the present Code;
  2)  the outlays made in the sale of securities not circulated on the organised market;
  3)  the outlays on the sale of securities circulated on the organized market;
  4)  the outlays made on the sale of the purchased commodities;
  5)  the outlays connected with the sale of fixed assets;
  6)  the outlays made by the servicing productions and economies as they sold commodities (works, services).
 4. The profit (loss) from sales, including:
  1)  the profit from the sale of home-produced commodities (works, services), as well as the profit (loss) from the sale of property and of the rights of property, with the exception of the profit (loss) pointed out in Subitems 2, 3, 4 and 5 of this Item;
  2)  the profit (loss) from the sale of securities not circulated on the organised market;
  3)  the profit (loss) from the sale of securities circulated at the organized market;
  4)  the profit (loss) from the sale of the purchased commodities;
  5)  the profit (loss) from the sale of fixed assets;
  6)  the profit (loss) from the sale of the servicing productions and economies.
 5. The sum of extra-sale incomes including:
  1)  incomes from operations with the financial instruments of futures deals circulated on the organized market;
  2)  incomes from operations with the financial instruments of futures deals not circulated on the organized market.
 6. The sum of extra-sale outlays, especially:
  1)  outlays on operations with the financial instruments of futures deals circulated on the organized market;
  2)  outlays on operations with the financial instruments of futures deals not circulated on the organized market.
 7. The profit (loss) from extra-sales operations.
 8. The total tax base for the reporting (tax) period.
 9. To define the sum of the profit subject to taxation, from the tax base shall be excluded the sum of the loss subject to being put off in the order envisaged by Article 283 of the present Code.

Article 316. Procedure for the Tax Recording of the Incomes from Sales


 The incomes from sales shall be defined by the kind of activity, if for the given kind of activity is envisaged other taxation procedure, is applied a different tax rate or is envisaged the order of recording profits and losses, received (incurred) from the given kind of activity differing from the general order.
 The sum of receipts from sales shall be defined in conformity with Article 249 of the present Code, taking account for the provisions of Article 251 of the present Code as on the date of recognising the incomes and outlays in accordance with the method for recognising the incomes and the outlays selected by the taxpayer for the purposes of taxation.
 If the price of the sold commodity (works, services) or of the right of property is expressed in the currency of a foreign state, the sum of the earnings from the sale shall be recalculated into roubles as on the date of sale.
 If the price of the sold commodities (works, services) and property rights is expressed in conventional units, the sum of earnings from the sale thereof shall be recalculated into roubles at the rate established by the Central Bank of the Russian Federation as on the date of the sale. With this, arising sum differences shall be included into the composition of extra-sale incomes (outlays) depending on the difference which arises.
 If the sale is effected through a commission agent, the tax paying consignor shall define the sum of the earnings from the realisation as on the date of sale on the grounds of the notice from the commission agent on the realisation of the property (of the rights of property) belonging to the consignor. The commission agent shall be obliged to notify the consignor of the date of sale of the property belonging to him, in the course of three days as from the moment of the end of the reporting period in which such sale has taken place.
 If the settlements in the sale are carried out on the terms of granting the commodity credit, the sum of the earnings shall also be defined as on the date of sale and shall include the sum of interest levied for the period from the moment of the shipment to the moment of the transfer of the right of property to the commodities.
 An interest levied for the use of the commodity credit as from the moment of the transfer of the right of property to the commodities until the moment of the complete settlement on the liabilities shall be included into the composition of the extra-sales outlays.
 For long technological cycle (over one tax period) production facilities, except for case when completed works (services) are delivered in phases under the contracts concluded, income from the sale of the said works (services) shall be distributed by the taxpayer at the taxpayer's own discretion with due regard to the principle of even income recognition on the basis of record data. In this case the principles and methods applied to distribute income from sales shall be approved by the taxpayer in accounting policy for taxation purposes.

Article 317. Procedure for Tax Recording of Individual Kinds of Extra-Sales Incomes


 When defining the extra-sales incomes in the form of fines, penalties or other sanctions imposed for violating contractual liabilities, as well as of the sums of recompense for the inflicted losses or damages, the taxpayers defining incomes using the method of calculation, shall reflect the due sums in conformity with the terms of the contract. If the terms of the contract do not establish the amount of penalty sanctions or a recompense for the losses, no liability arises with the taxpayer for calculating the extra-realisation incomes from these kinds of incomes. And if the debt is exacted by court decision, the liability involved in the calculation of this extra-sales income arises with the taxpayer on the grounds of a court decision, which has entered into legal force.

Article 318. Procedure for Defining the Sum of the Outlays on Production and Sale


 1. If the taxpayer defines the incomes and the outlays by method of calculation, the outlays on the production and on sale shall be defined taking account for the provisions of this Article.
 For the purposes of this Chapter, the outlays on the production and sales made in the course of the reporting (tax) period shall be subdivided into:
  1)  direct;
  2)  indirect.
 To direct outlays there shall pertain:
 the material expenses determined in compliance with Subitems 1 and 4 of Item 1 of Article 254 of this Code;
 the outlays on paying labour wages to the personnel participating in the production of commodities, carrying out works and rendering services, as well as the sums of the uniform social tax on said amounts of outlays on paying labour wages;
 the sums of accrued depreciation of the fixed assets used in the production of commodities, works and services.
 To indirect outlays there shall pertain all other sums of outlays, safe for the extra-sale outlays determined in compliance with Article 265 of this Code and made by a taxpayer within a report (tax) period.
 2. The sum of indirect outlays on production and sales effected in the reporting (tax) period, shall be in full volume referred to the outlays of the current report (tax) period subject to the requirements provided for by this Code.
 The sum of direct outlays made in the reporting (tax) period shall pertain to the outlays of the current report (tax) period with the exception of the sums of direct outlays distributed between the residuals of the incomplete production, of finished products kept in warehouses and of those shipped but not sold in the reporting (tax) period.
 3. Where in respect of individual outlays limitations with regard to the amount of outlays accepted for the purposes of taxation are stipulated under this Chapter, the base for calculating the ultimate amount of such outlays shall be determined in progressive total, as of the start of a tax period. With this, as regards the outlays of a taxpayer connected with voluntary insurance (retirement insurance) of his workers, the term of a contract's validity in a tax period, starting from the date of entry of such contract into force, shall be taken into account, when determining the ultimate amount of the outlays.

Article 319. Procedure for Estimating the Residuals of Incomplete Production and of Those of Finished and Shipped Products


 1. For the purposes of this Chapter, interpreted as incomplete production (hereinafter referred to as the NZP) shall be those which have not gone through all the processing (finishing) operations stipulated by the technological process. Into the incomplete production shall be included products finished but not completely accepted by the customer, as well as works and services finished but not accepted by the customer. To the incomplete production shall also be referred the residuals of the non-fulfilled orders of the productions and the residuals of semi-finished products of domestic manufacture. The materials and semi-finished products still in production shall be referred to work in progress only if they have already been processed.
 The residuals of incomplete production as at the end of the current month shall be estimated by the taxpayer on the grounds of the data of the basic accounting documents on the movement and on the residuals (in quantitative terms) of raw, materials and finished products in workshops (works and other industrial subdivisions of a taxpayer) and the data of the tax records on the sum of direct outlays made in the current month.
 As regards the taxpayers whose production is connected with treatment and processing of raw materials, the amount of direct outlays shall be distributed in respect of the residuals of NZP in proportion to the share of such residuals in feedstock (in quantitative terms), less technological losses. With this, for the purposes of this Chapter, raw shall mean a material used in production as the material basis which transforms into finished products as a result of sequential technological treatment (processing).
 As regards the taxpayers whose production is connected with carrying out works (rendering services), the amount of direct outlays shall be distributed in respect of the residuals of NZP in proportion to the share of unfinished (or finished but not accepted as on the end of the current month) orders for carrying out works ( rendering services) in the total volume of orders for carrying out works (rendering services) completed within a month.
 As regards other taxpayers, the amount of direct outlays shall be distributed in respect of the residuals of NZP in proportion to the share of direct outlays in the planned (normative, estimated) cost of products.
 The sum of the residuals of the incomplete production as at the end of the current month shall be included into the composition of the material outlays in the next month. When the tax period comes to an end, the sum of the residuals of the incomplete production as at the end of the tax period shall be included in the composition of the next tax period in the order and on the terms stipulated in this Article.
 2. The residuals of finished products left in warehouses as on the end of the current month shall be assessed by the taxpayer on the grounds of the data of basic accounting documents on the movement and residuals of finished products left in warehouses (in quantitative terms), as well as of the sum of direct outlays made in the current month, reduced by the sum of direct outlays related to the residuals of NZP. The assessment of the residuals of finished products in warehouses shall be determined by a taxpayer as a difference between the amount of direct outlays falling at the residuals of finished products as on the start of the current month increased by the amount of the direct outlays falling at the output in the current month (less the amount of the direct outlays falling at the residuals of NZP), and the amount of the direct outlays falling at the products shipped within the current month.
 3. The residuals of the shipped but not sold products as on the end of the current month shall be assessed by a taxpayer on the basis of the data on the shipment (in quantitative terms) and the amount of the direct outlays made in the current month decreased by the amount of the direct outlays related to the residuals of NZP and the residuals of finished products in warehouses. The assessment of the residuals of shipped, but not sold products as on the end of the current month shall be determined by a taxpayer as a difference between the amount of the direct outlays falling at the residuals of shipped but not sold finished products as on the start of the current month increased by the amount of the direct outlays falling at the products shipped in the current month (less the amount of the directs outlays falling at the residuals of finished products in warehouses), and the amount of the direct outlays falling at the products sold in the current month.

Article 320. Procedure for Defining the Outlays on Commercial Transactions


 Taxpayers engaged in wholesale small-batch wholesale and retail shall formulate the outlays on the sale (hereinafter referred to in this Article as the expenses of circulation) taking account of the following specifics.
 In the course of the current month, the expenses of circulation shall be formed in accordance with this Chapter. In the sum of the expenses shall also be included the outlays of the tax paying purchaser of commodities on the delivery of these commodities, if such delivery is not included in the price of acquisition of commodities under contract terms, those on storage and other outlays of the current month connected with the acquisition and the sale of commodities. To the expenses of circulation there shall not be referred the cost of purchased commodities which shall be accounted when selling them in compliance with Subitem 3 of Item 1 of Article 268 of this Code. The cost of purchased commodities which are shipped but not sold as on the end of a month shall not be included by the taxpayer into the composition of the outlays connected with production and sale thereof pending the moment of their sale.
 The outlays of the current month shall be divided into direct and indirect. To direct outlays shall be referred the cost of the purchased commodities sold in the given report (tax) period and the sums of the outlays on delivery (transportation costs) of the purchased commodities to the warehouse of the tax paying purchaser of commodities, if these outlays are not included in the price of acquisition of these commodities. All the other outlays save for the extra-sale outlays determined in compliance with Article 265 of this Code, made over the current month shall be recognised as indirect and shall reduce the incomes from sale in the current month. The amount of direct outlays referred to the residuals of commodities in the store-house shall be defined at an average interest for the current month, taking account of the transferred residual as at the start of the month in the following order:
 1. The cost of direct outlays shall be defined which fall onto the cost of the residual of commodities in the warehouse as at the beginning of the month and which are made in the current month.
 2. The sum of commodities shall be defined which were sold in the current month, as well as the residual of commodities in the warehouse as at the end of the month.
 3. An average interest shall be calculated as the ratio of the sum of direct outlays (Item 1 of this Article) to the cost of commodities (Item 2 of this Article).
 4. By multiplying the average interest by the cost of the residual of commodities as on the end of a month the sum of direct outlays related to the residual of commodities in warehouses shall be determined.

Article 321. Specifics in Keeping the Tax Records by Organisations Set Up in Conformity with the Federal Laws Regulating the Activity of These Organisations


 Organisations set up in conformity with federal laws (the Central Bank of the Russian Federation, the Agency for Restructuring Credit Institutions and the federal postal communication service), regulating the activity of these organisations, shall keep separate records on the incomes and outlays received (made) in the performance of an activity involved in the discharge of the functions envisaged by legislation, as well as of the incomes and outlays received (made) in the performance of other kinds of commercial activity.
 When carrying out the tax recording of commercial activities, such organisations shall apply the general norms of this Chapter, regulating the order of delineating the incomes and the outlays, as well as the special norms (specifics) envisaged for the individual taxpayer categories, or the norms stipulated for particular circumstances. A non-profit organisation applies the given norms if it performs such kinds of activity in conformity with federal laws.
 If such non-profit organisations make obligatory uncompensated outlays in conformity with the demands of the legislation of the Russian Federation, such outlays shall be recognised as outlays of this organisation, subtracting the incomes from its commercial activity.

Article 321.1. Specifics in Keeping Tax Records by Budgetary Institutions


 1. The tax payers - budgetary institutions, financed at the expense of funds from the budgets of all levels and of the state extra-budgetary funds, allocated in accordance with an estimate of the incomes and the outlays of the budgetary institution and deriving incomes from the other sources, shall also be obliged, for the purposes of taxation, to keep a separate recording of the incomes (the outlays), received (made) in the framework of the goal-oriented financing at the expense of the other sources.
 For the purposes of this Chapter, recognized as the other sources - the incomes from the commercial activity - shall be the incomes of budgetary institutions, received from legal and natural persons on transactions, involved in the realization of commodities, works and services, and of the property rights, as well as the extra-realization incomes.
 The tax base of budgetary institutions shall be defined as the difference between the sum of an income, derived from the realization of commodities, from the performed works and rendered services, as well as the sum of extra-realization incomes (not taking into account the value added tax, the excise duty for excisable commodities), and the sum of the actually made outlays, involved in the performance of the commercial activity.
 Transactions, involved in the computation of incomes from the commercial activity and of the outlays connected with the performance of this activity, shall be reflected on the tax records in accordance with the procedure, established in the present Chapter.
 The sum of an excess of the incomes from the commercial activity over the outlays cannot be directed before the computation of the tax towards coverage of the outlays, envisaged at the expense of the funds of the goal-oriented financing, allocated in accordance with an estimate of the incomes and the outlays of the budgetary institution.
 2. In the composition of the incomes and the outlays of budgetary institutions, included into the tax base, shall not be taken into account the incomes, received in the form of the funds of the goal-oriented financing and of the goal-oriented receipts for the maintenance of budgetary institutions and for the performance of the statutory activity, financed at the expense of the above-said incomes, or the outlays, made at the expense of these funds.
 An analytical recording of the incomes and the outlays on the funds of the goal-oriented financing and the goal-oriented receipts shall be kept on every kind of the receipts, with an account for the demands of the present Chapter.
 3. If in the estimates of the incomes and the outlays of the budgetary institution is envisaged financing of the outlays on the remuneration for the public utilities and for the communications services, as well as for the transportation expenses, involved in servicing the administrative-managerial personnel at the expense of two sources, for the purposes of taxation the acceptance of such outlays for the reduction of the incomes, derived from the business activity, and of the funds of the goal-oriented financing shall be effected in proportion to the volume of the funds, derived from the business activity, in the total sum of the incomes (including the funds of the goal-oriented financing). In this case, for the above-said purposes in the total sum of the incomes shall not be taken into account the extra-realization incomes (the incomes, derived in the form of the bank's interest on the funds, kept on the settlement and on the deposit accounts or received from letting out the property, the differences in the exchange rates, and the other incomes).
 4. For the purposes of the present Chapter, when delineating the tax base, to the outlays, involved in the performance of the commercial activity, shall be referred, besides the outlays, made for the purposes of the performance of the business activity, also the sums of depreciation charges, computed on the property, acquired at the expense of the funds, derived from this activity and used for the performance of this activity. In this case, for the fixed assets, acquired before January 1, 2002, the residual cost shall be defined as the difference between the initial cost of the fixed assets object and the sum of depreciation charges, computed in accordance with the business accounting rules for the period of operation of such object.
 5. In the budgetary institutions (regardless of whether such institutions possess settlement or other accounts), engaged in commercial activity, business accounting shall be kept by centralized accountant's offices in conformity with the provisions of the present Chapter.
 Tax declarations shall be submitted by the centralized accountant's offices to the tax bodies at the place of location of each budgetary institution in accordance with the procedure, established by the present Code.

Article 322. Specifics in Organising the Tax Recording of Depreciated Property


 1. As regards the fixed assets put into operation prior to entry into force of this Chapter, the term of their beneficial use shall be established by a taxpayer independently, as on January 1, 2002, subject to the classification of fixed assets defined by the Government of the Russian Federation and the terms of beneficial use thereof according to depreciation groups established by Article 258 of this Code.
 Regardless of the method of charging depreciation on the property put into operation prior to entry of this Chapter into force which is selected by a taxpayer, the depreciation shall be charged reasoning from the residual cost of said property.
 The amount of the depreciation on said property charged for one month shall be determined as:
  1)  the product of the residual cost and the depreciation rate (calculated reasoning from the term of beneficial use thereof left) established by a taxpayer for said property in compliance with Item 5 of Article 259 of this Code - when using the non-linear method of charging depreciation;
  2)  the product of the residual cost determined as on January 1, 2002 and the rate of depreciation (calculated reasoning from the term of beneficial use thereof left) established by a taxpayer for said property in compliance with Item 4 of Article 259 of this Code - when using the linear method of charging depreciation.
 The depreciable fixed assets, whose actual term of use (actual term of depreciation) is longer as the term of beneficial use of said depreciable fixed assets established in compliance with the requirements of Article 258 of this Article, shall be singled out by a taxpayer as on January 1, 2002 into a separate depreciation group of depreciable property with regard to the assessment on the basis of the residual cost which is subject to inclusion into the composition of the outlays for the purposes of taxation evenly within the term determined by the taxpayer independently but no less than seven years as of the date of entry of this Chapter into force.
 2. No depreciation shall be charged on fixed assets handed over by the taxpayer into gratuitous use, beginning with the first day of the month next to that month in which the said handing over took place.
 A similar order shall be applied with respect to the fixed assets which are handed over by the decision of the organisation's management into conservation for over three months, and also with respect to the fixed assets which have been put by the decision of the organisation's management under reconstruction and modernisation for over twelve months.
 After the end of the contract of gratuitous use and of the return of the fixed assets to the taxpayer (as well as after the reactivation or completing the reconstruction), the depreciation shall be charged in the order defined by the present Chapter of the Code, beginning with the first day of the month next to the month in which the fixed assets were returned to the taxpayer and the reconstruction or the reactivation of the fixed asset was completed.
 3. As the original cost of intangible assets which were not in business accounting records in the composition of intangible assets as on January 1, 2002, but under this Chapter pertain to intangible assets, shall be recognized the amount of outlays determined as a difference between the amount of outlays on their acquisition (creation) and bringing them to the condition, when they are fit for use, and the amount of the outlays which earlier decreased the tax base of the taxpayer in the procedure effective prior to entry of this Chapter into force.

Article 323. Specifics in Keeping the Tax Records of Operations with Depreciable Property


 The taxpayer shall determine the profit (loss) from the sale or retirement of the depreciated property on the grounds of analytical accounting on every object as on the date of recognising the income (outlays).
 The incomes and the outlays on the depreciated property shall be recorded by the object.
 Analytical accounting shall contain information on:
  -  the original cost of the depreciated property sold (retired) in the reporting (tax) period;
  -  the changes in the original cost of such fixed assets as their construction or equipment is completed as they are reconstructed or partially liquidated;
  -  the time terms for the beneficial use of the fixed assets accepted by the organisation;
  -  the methods for the calculation and the sum of the depreciation charged on the depreciated fixed assets for the period from the date of the start of charging the depreciation until the end of the month when such property is sold (retired);
  -  the price of sale of the depreciated property, proceeding from the terms of the purchase and sale contract;
  -  the date of acquisition and the date of sale (retirement) of the property;
  -  the date of putting property into operation, the date of exclusion from the composition of depreciable property for the reasons provided for by Item 3 of Article 256 of this Code, the date of re-activating property, the date of termination of a contract on the gratuitous use, the date of completing reconstruction works, the date of modernization;
 the outlays incurred by a taxpayer which are connected with the sale (retirement) of depreciable property, especially the outlays provided for by Subitem 8 of Item 1 of Article 265 of this Code, as well as the outlays on the storage, servicing and transportation of sold (retired) property;
 A taxpayer shall determine the profit (loss) from the sale of depreciable property in compliance with Item 3 of Article 268 of this Code, as on the date of making the transaction.
 In analytical accounting as on the date of sale of the depreciated property shall be fixed the sum of the profit (loss) on the said operation, which shall be taken into account for the purposes of defining the tax base, in the following order:
 The profit derived by a taxpayer shall be subject to the inclusion in the composition of the tax base in the reporting period in which the sale of the property took place.
 The losses of a taxpayer shall be shown in the analytical accounting as other outlays of the taxpayer in compliance with the procedure established by Article 268 of this Code.
 The analytical accounting should contain information on the denominations of the objects in respect of which there are amounts of such outlays, on the number of months within which such outlays may be included into the composition of other outlays connected with production and sale, and the amount of outlays falling at each month. The term shall be determined in months and shall be calculated in the form of a difference between the number of months of the term of beneficial use of this property and the number of the months of operation of property prior to the moment of sale thereof, including the month when the property was sold.

Article 324. Procedure for Keeping Tax Records on the Outlays on Repairs of Fixed Assets


 1. As regards the analytical accounting, a taxpayer shall form the amount of outlays on repairs of fixed assets subject to the grouping of all outlays made, including the cost of spare parts and disposables used for repairing, the outlays on labour wages of the workers engaged in repairing, and other outlays connected with carrying out said repairing by own means , as well as subject to the outlays on paying the works carried out by outside forces.
 2. A taxpayer forming a reserve for forthcoming outlays on repair shall calculate allocations to such reserve reasoning from the aggregate cost of fixed assets calculated in compliance with the procedure established by this Item and from the normative standards of allocations endorsed by the taxpayer independently in the accounting policy thereof for the purposes of taxation.
 The aggregate cost of fixed assets shall be determined as the sum of the original cost of all depreciable fixed assets put into operation as on the start of the tax period where the reserve of forthcoming outlays on the repair of fixed assets is formed. For calculating the aggregate cost of the depreciable fixed assets put into operation prior to entry into force of this Chapter, the replacement cost determined in compliance with Item 1 of Article 257 of this Code shall be accepted.
 When determining normative standards of allocations to the reserve of forthcoming outlays on the repair of fixed assets, a taxpayer shall be bound to determine the ultimate amount of allocations to the reserve of forthcoming outlays on the repair of fixed assets reasoning from the periodicity of repairing an object belonging to fixed assets, the frequency of changing elements of fixed assets (especially the units, parts and structures thereof) and the estimated cost of said repair. With this, the ultimate sum of the reserve for forthcoming outlays on said repair may not exceed the average value of actual outlays on the repair formed within the last three years. Where a taxpayer accumulates assets for especially complex and expensive types of major repair of fixed assets within more than one tax period, the ultimate amount of allocations to the reserve of forthcoming outlays on the repair of fixed assets may be increased by the amount of allocations to financing said repair falling at an appropriate tax period in compliance with a schedule of carrying out said types of repair on conditions that in the previous tax periods the aforesaid or similar repair works have not been conducted.
 The allocations to the reserve of forthcoming outlays on the repair of fixed assets within a tax period shall be written off as outlays in equal portions on the last day of an appropriate report (tax) period.
 Where a taxpayer forms the reserve for forthcoming outlays on the repair of fixed assets, the amount of actually made expenses on the conduct of the repair shall be written off at the expense of the funds of said reserve.
 Where the amount of actually made outlays on the repair of fixed assets within a report (tax) period exceeds the amount of the reserve formed for forthcoming outlays on repair of fixed assets, the remainder of the outlays for the purposes of taxation shall be included into the composition of other outlays, as on the date of the end of the tax period.
 If at the end of a tax period the remainder of the reserve funds for forthcoming outlays on the repair of fixed assets exceeds the amount of the outlays on the repair of fixed assets actually made in the current tax period, the sum of such excess as on the last date of the current tax period for the purposes of taxation shall be included into the composition of a taxpayer's outlays.
 Where in compliance with the accounting policy for the purposes of taxation and on the basis of a schedule of conducting a major repair of fixed assets a taxpayer accumulates assets for financing said repair within more than one tax period, at the end of the current tax period the remainder of such assets shall not be subject to inclusion into the composition of the outlays for the purposes of taxation.
 3. If a taxpayer exercises the types of activities in respect of which the tax base with regard the tax is calculated separately in compliance with Article 274, then the analytical accounting of outlays on the repair of fixed assets for the purposes of taxation shall be effected according to types of production and types of activities.

Article 324.1. Procedure for Accounting Outlays on Forming the Reserve for Forthcoming Outlays on Payment of Leaves and the Reserve for Payment of Bonuses for Long Service


 1. A taxpayer who has decided on the even accounting of forthcoming outlays on payment of workers' leaves for the purposes of taxation, shall be obliged to show in the accounting policy for the purposes of taxation the way of making the reserve accepted by him and to determine the ultimate amount of allocations and the monthly per cent rate of allocations to said reserve.
 For that, a taxpayer shall be obliged to draw up a special calculation (estimate) to show the way of calculating the rate of monthly allocations to said reserve reasoning from the data on the supposed annual amount of outlays on payment of leaves, including the amount of the uniform social tax on these outlays. With this, the per cent rate of allocations to said reserve shall be determined as the ratio of the supposed annual amount of outlays on payment of leaves to the supposed annual amount of outlays on labour wages.
 2. The outlays on forming the reserve for forthcoming outlays on payment of leaves shall be entered to the accounts for recording outlays on labour wages of appropriate categories of workers.
 3. A taxpayer shall be obliged to carry out the inventory of said reserve at the end of a tax period.
 The underused amounts of said reserve, as on the last day of the current tax period, shall be subject to obligatory inclusion into the tax base of the current tax period.
 Where the funds of actually calculated reserve confirmed by the inventory on the last working day of a tax period are not sufficient, the taxpayer shall be obliged, as on the 31st of December of the year when the reserve was formed, to include into the outlays the amount of actual outlays on paying leaves and the accordingly the sum of the uniform social tax in respect of which said reserve has not been earlier formed.
 4. The reserve for forthcoming outlays on paying workers' leaves should be specified reasoning from the number of unused vacation days, the average daily amount of outlays on labour wages of workers (subject to the established methods of calculating average wages) and the obligatory deduction of the uniform social tax.
 5. Where in the course of specifying the accounting policy for the next tax period a taxpayer deems it unreasonable to form a reserve for forthcoming outlays on paying leaves, the amount of the remainder of said reserve exposed as a result of an inventory, as on the 31st of December of the year when it was formed, shall be included in the composition of extra-sale outlays of the current tax period for the purposes of taxation.
 6. A taxpayer shall make allocations to the reserve for forthcoming outlays on paying yearly bonuses for long service and for the results of work during the past year in a similar procedure.

Article 325. Procedure for Keeping Tax Records on the Development of Natural Resources


 1. Taxpayers who have adopted the decision on the acquisition of licences for the right to use mineral wealth shall separately reflect in the analytical registers of tax records the outlays made for the purposes of acquiring the licences. The outlays connected with the acquisition of each concrete licence shall be recorded separately.
 To the outlays made on the acquisition of licences shall be, in particular, referred:
  -  outlays involved in the preliminary estimate of the deposit;
  -  outlays connected with carrying out audits of deposit stocks;
  -  outlays on the development of the technical and economic substantiation (of other similar works) and on projects for developing the deposit;
  -  outlays on the acquisition of geological and other information;
  -  outlays on the payment for participation in the tender.
 If by the results of the tender the taxpayer concludes a licence agreement for the right to use mineral wealth (receives the licence), the outlays made by the taxpayer in connection with the procedure for taking part in the tender shall form the cost of the licence agreement (the licence), which shall be recorded by the taxpayer in the composition of non-material assets. The depreciation of the given non-material asset shall in this case be charged in the order established by Articles 256-259 of the present Code.
 If by the results of the tender the taxpayer does not conclude a licence agreement for the right to use mineral wealth (does not receive the licence), the taxpayer's outlays connected with the procedure of participation in the tender shall be included in the composition of other outlays from the first day of the month next to the month of holding the tender, evenly in the course of five years. If after making preliminary outlays aimed at the acquisition of licences the taxpayer adopts the decision on the refusal from taking part in the tender or on the inexpediency of acquiring the licence, the said outlays shall also be included in the composition of the other outlays from the first day of the month next to that month in which the taxpayer adopted the said decision, evenly in the course of five years. The said decision shall be formalised with the corresponding Order (Direction) of a manager.
 In a similar order shall be recorded the outlays made for the acquisition of licences for the right to use mineral wealth, if the said licences are issued to the taxpayer without holding a tender.
 2. The outlays on the development of natural resources mentioned in Item 1 of Article 261 of the present Code shall be reflected in the analytical registers of tax records apart on every plot of the earth bowels (deposits) or on the plot of the territory (water area) reflected in the taxpayer's licence agreement (in the licence for the right to use mineral wealth).
 Depending on the particular kind of outlays, they shall be grouped as:
  -  general outlays on the developed plot (deposit) as a whole;
  -  outlays related to the individual parts of the territory of the developed plot;
  -  outlays related to the particular object created in the course of developing the plot.
 To the general outlays shall be referred, in particular:
  -  outlays on the search for and estimation of the deposits of useful minerals (including the audit of the stocks), on prospecting for commercial minerals and (or) on hydro-geological studies carried out on the plot of the earth's bowels in accordance with licences (permits) granted in the established order, as well as outlays on the acquisition of necessary geological and other information from third persons, including from state bodies;
 Seen as outlays referred to the individual parts of the territory of the developed plot shall be outlays identified on the grounds of basic accounting documents, in particular:
  -  those on preparing the territory for the performance of mining, building and other works in conformity with the established demands for safety and protection of the land, the earth's bowels and other natural resources;
  -  the other outlays effected in connection with the development of the part of the plot area.
 The sum of the general outlays shall be recorded on every part of the area of the developed plot (deposit) in the share defined proceeding from the ratio of the sum of the outlays related to the individual parts of the area of the developed plot to the total sum of the outlays made on the development of the given plot (deposit).
 To the outlays related to the particular object created in the course of development of the plot shall be referred those directly involved in building structures which may be subsequently recognised, on the grounds of the taxpayer's decision, as constantly operated fixed assets objects.
 3. When carrying out geological-search work and geological prospecting work aimed at finding useful minerals, the sum of the outlays made by the taxpayer shall be defined on the grounds of the acts on the works performed under agreements with the contractors and on the grounds of the expenditures actually made by the taxpayer referred to the outlays on the development of natural resources in conformity with the provisions of this Article.
 The taxpayer shall organise the tax recording of the said outlays on every contract and on every object connected with the development of natural resources.
 The analytical registers of tax records shall contain information on completing the works in the context of every contract involved in the said works on every particular plot of the earth's bowels.
 After the works under an agreement with the contractor are completed, outlays made under the given agreement shall be included in the composition of the other outlays as from the first day of the month in which the last act on the performed works was signed with the contractor on the given agreement. The effected outlays shall be included in equal parts in the composition of other outlays within the time terms envisaged by Article 261 of the present Code.
 The current outlays on the maintenance of the objects connected with the development of natural resources (including those on wage payments, the maintenance and running of temporary structures and other such expenses), as well as the outlays on bringing to an end the prospecting of the deposit or of the sections thereof which are within the limits of allotment of land or mining lease of an organization shall be included in the full sum in the composition of outlays of the reporting (tax) period in which they were made. To the outlays on bringing to an end the prospecting shall also be referred those involved in the performance of works aimed at completing the prospecting of deposits which are already put into operation and are industrially developed.
 The said order of recording concerns the outlays on all geological-search and geological prospecting work, including the outlays made on those works which have been recognised as useless and unpromising, or the continuation of which has been recognised as inexpedient.
 If the developed plot (the part of the area of the developed plot) is recognised by the taxpayer as unpromising, or if the continuation of its development is recognised as inexpedient, the sums of the outlays made by the taxpayer on the development of the given plot shall be included in the composition of the other outlays in the general order laid down in Article 261 of the present Code.
 4. If the taxpayer's outlays made in the composition of outlays on the development of natural resources are directly connected with building the objects which subsequently, by the taxpayer's decision, may be turned into permanently operated fixed assets objects (including wells), these outlays shall be recorded in the analytical registers of tax records by every erected object of fixed assets. The said fixed assets objects shall be depreciated in conformity with the order established by this Chapter.
 The outlays on building temporary structures (including temporary approach lines and roads; sites and installations for the storage of the fertile soil layer, of extracted rock and of waste; the temporary structures for accommodating members of the geological prospecting parties, and other similar objects) shall be included in the composition of the other outlays as from the first day of the month next to the month in which the works for their construction were completed on the grounds of the acts on the performed works.
 5. If a certain well has proved (been recognised) as unproductive, the taxpayer's outlays on the liquidation of such well shall also be included in the composition of the outlays recorded on the given object in the tax records in conformity with the procedure established by Article 261 of the present Code. The total sum of the outlays reflected in the tax records on the given object shall be included in the composition of the other outlays in conformity with the order envisaged by this Article.

Article 326. Procedure for Keeping Tax Records on Futures Deals Using the Method of Calculation


 The taxpayer shall define the tax base for operations with the financial instruments of futures deals on the grounds of data from the tax recording registers.
 The data of the tax recording registers shall reflect the procedure for the formation of the sum of the incomes (outlays) on futures deals recorded for the purposes of taxation.
 The data of the tax recording registers shall contain in the monetary expression the sums of the taxpayer's claims (liabilities) with respect to the counterpart in accordance with the terms of the concluded contracts:
  -  on deals envisaging the purchase and sale of basic assets;
  -  on deals envisaging the execution of liabilities by making mutual settlements and (or) by concluding a reciprocal deal - the change of the sums of such claims and liabilities from the date of concluding the deals and until the date of settlements and (or) of the date of execution of the deal which is the first in time.
 The claims (liabilities) may be expressed either in roubles or in foreign currency. The claims (liabilities) in foreign currency shall be revaluated in connection with a change in the official exchange rates of foreign currencies to the Russian rouble. The claims (liabilities) on future deals envisaging the purchase or sale of a basic asset shall be re-valued in keeping with a change in the market price of the basic asset.
 The taxpayer shall reflect in analytical accounting as on the date of concluding a deal the sum of the claims arisen (liabilities) to the counterparts, proceeding from the terms of the deal and from the claims (liabilities) with respect to the basic asset (including with respect to commodities, monetary funds, noble metals, securities and the index of the prices or rates).
 The tax base shall be defined by the taxpayer as on the date of execution of the futures deal. For the deals of a durable character the tax base shall be defined by the taxpayer also as on the date of the end of the reporting (tax) period.
 With this, the incomes (outlays) related to the forward deals stipulating the purchase and sale of a basic asset (safe for currency values) shall be accounted by a taxpayer as on the date of transfer of ownership of the basic asset in compliance with the terms and conditions of the deal.
 If the terms of the deal envisage the performance of interim settlements in the face of a change in the value assessment of the claims (liabilities) in connection with a fall (rise) in the official exchange rates of foreign currencies to the Russian rouble, or in the market (exchange) price of commodities, the taxpayer shall define the incomes (outlays) for every date of making such settlements in accordance with the terms of the deal.
 If the rouble equivalent of the claims (liabilities) in foreign currency grows (falls) due to a change in the official exchange rates of foreign currencies to the Russian rouble or with an increase (a decrease) in the claims (liabilities) in connection with a change in the market quotations of the basic asset, the sum of positive (negative) differences or of the growth (reduction) of claims (liabilities) formed over the period from the date of making the deal (from the date of the end of the previous reporting /tax/ period) and until the date of the execution of the deal (of the end of the reporting /tax/ period) shall be included into the composition of the incomes (outlays) forming the tax base for operations with the financial instruments of futures deals.
 When the deadline for the execution of a future deal with the financial instruments of futures deals arrives, the taxpayer shall assess the claims and the liabilities as on the date of execution in conformity with the terms of its conclusion, and shall define the sum of incomes (liabilities) taking account of the sums of the incomes and outlays recorded earlier for the purposes of taxation in the composition of the incomes and of outlays.
 When performing futures deals envisaging the purchase or sale of foreign currency, of noble metals or of securities nominated in foreign currency, the taxpayer shall define, as on the date of the execution of the deal, the incomes (outlays) taking account of the exchange rate differences identified as the difference between the exchange rate of the execution of the deal and the exchange rate of currencies and official prices of noble metals fixed by the Central Bank of the Russian Federation as on the date of the execution of the deal.
 The taxpayer shall set apart for separate tax recording operations with the financial instruments of futures deals concluded for the purpose of compensation for probable losses which could arise as a result of an unfavourable change in the price or other index of the basic asset (of the object of hedging).
 The taxpayer shall make a calculation on every hedging operation separately; it shall contain the following data:
  -  a description of the hedging operation, including the name of the object of hedging, the types of insured risks (price, currency, credit, interest and similar risks), the planned actions with respect to the object of hedging (purchase, sale and other actions), financial instruments of futures deals planned for use, and the terms for the execution of the deal;
  -  the date of the start of a hedging operation, the date of its end, and (or) its duration, as well as the interim terms of the settlement;
  -  the volume, date and price of the deal (deals) with the object of hedging;
  -  the volume, date and price of the deal (deals) with the financial instruments of futures deals;
  -  information on outlays on the performance of the given operation.
 Analytical accounting shall be kept separately on deals made with the financial instruments of futures deals circulated on the organised market, and on deals with the financial instruments of futures deals not circulated on the organised market, as well as on deals made with the aim of hedging.

Article 327. Procedure for Organising Tax Recording on Futures Deals Using the Cash Method


 Taxpayers applying the cash method for defining the incomes and outlays shall organise tax recording in conformity with the principles described in this Chapter. The incomes and outlays on operations with the financial instruments of futures deals shall be calculated by the tax payers, who apply the cash method for defining the incomes and the outlays as on the date of the actual arrival (transfer) of the monetary funds.

Article 328. Procedure for Keeping Tax records on Incomes (Outlays) in the Form of Interest Received on Contracts of Loan, Credit, Bank Account and Bank Deposit, as Well as of Interest on Securities and Other Debt Liabilities


 1. A taxpayer on the basis of the analytical accounting of extra-sale incomes shall interpret the incomes (outlays) in the form of interest on securities, on contracts of credit and loan, of bank account and of bank deposit and (or) on the otherwise formalized debt liabilities.
 In the analytical accounting a taxpayer shall be independently show the incomes (outlays) in the sum of interest due to him in accordance with the terms and conditions of said contracts (and in compliance with the terms of issue with regard to securities, on the bills - by the terms for the issue or for the transfer (for the sale)) separately on every kind of debt liabilities subject to Article 269 of this Code.
 The amount of incomes (outlays) in the form of interest on debt liabilities shall be included into the records of analytical accounting proceeding from the profitability established for every kind of debt liabilities and from the term of validity of such debt liability in the reporting period, as on the date of recognizing the incomes (outlays) determined in compliance with the provisions of Articles from 271 to 273 of this Code.
 2. Interest paid by a bank under a contract of bank account shall be included by a taxpayer in the tax base on the grounds of an excerpt on the movement of the taxpayer's monetary funds on the bank account thereof, if not otherwise provided for by this Chapter. Where a contract of servicing bank account does not provide for making settlements with regard to payment of bank services when conducting each settlement cash operation, the date of the receipt of income by the taxpayer who has passed over to the recognition, accounting and determination of incomes (outlays) by using the method of calculation shall be deemed the last day of the reporting month.
 3. interest under contracts of credit, loan and other similar contracts and other debt liabilities (including securities) shall be accounted, as on the date of recognizing the income (outlay) in compliance with this Chapter.
 4. Interest received (subject to receipt) by a taxpayer for letting use of monetary assets shall be accounted in the composition of the incomes (outlays) subject to inclusion into the tax base on the basis of an abstract on the movement of the taxpayer's monetary assets of the taxpayer on a banking account thereof, if not otherwise provided for by this Article.
 A taxpayer determining his incomes (outlays) by using the method of calculation shall determine the amount of income (outlay) received (paid) or subject to the receipt (payment) in the reporting period in the form of interest under the terms and conditions of a contract proceeding from the profitability established for each type of debt liabilities and the validity of such debt liability in the reporting period subject to the provisions of this Item. A taxpayer shall be obliged to show in the analytical accounting on the basis of certificates of the person in charge of keeping records of incomes (outlays) with regard to debt liabilities the amount of interest due to be received (paid) as on the end of a month in the composition of incomes (outlays).
 In the event of early liquidation of a debt liability, interest shall be determined proceeding from the interest rate established by the terms and conditions of a contract subject to the provisions of Article 269 of this Code and the actual time period of using borrowed assets.
 A procedure for recognizing incomes (outlays) in the form of interest established by this Article with regard to any kind of debt liabilities shall be likewise applied by the organizations for which operations with such debt liabilities are recognized as sale operations in compliance with their authorized activities.
 5. As regards state and municipal securities, income in the form of interest thereon shall be determined in compliance with Articles 271 and 273 of this Code and may be recognized on the date of their sale on the basis of a contract of purchase and sale, or on the date of paying the interest on the basis of a bank abstract, or on the last date of the reporting period in compliance with the provisions of this Chapter. Interest shall be subject to showing in the tax records on the basis of a certificate of the person in charge of calculating profit from operations with securities.
 Where a taxpayer determines incomes and outlays by using the cash method, interest shall be deemed received on the date of arrival of the monetary funds. A ground for including such amounts into the composition of the incomes received in the form of interest shall be a bank abstract concerning the movement of monetary assets on bank accounts.
 Where a taxpayer, while determining incomes and outlays, applies the method of calculation, the amount of interest on state and municipal securities received by a taxpayer (due to a taxpayer) shall be recognized as an income on the date of sale of a security, or on the date of paying such interest (repayment of coupon) in compliance with the terms of the issue, or on the last date of the reporting period in compliance with the provisions of this Chapter.
 Where an accumulated coupon interest is included into the sale price of state and municipal securities circulated on the organized securities market, a taxpayer shall independently determine on the date of sale of such securities the amount of income in the form of interest on the basis of a contact of purchase and sale subject to the provisions of Items 6 and 7 of this Article.
 6. When making transactions with state and municipal securities circulated on the organized securities market which are sold under the condition that the price of deal in them includes the accumulated coupon income (income in the form of interest), a taxpayer who has passed over to the determination of incomes (outlays) by using the cash method, shall calculate income as a difference between the amount of accumulated coupon income received from the purchaser and the amount of accumulated coupon income paid to the seller. If during the time period between the date of sale of a security and the date of acquisition thereof in compliance with the terms and conditions of the issue payments in the form of interest were made, then the date of paying interest while redeeming the coupon shall be recognized as the date of receiving the income. With this, the income shall be determined as a difference between the amount of interest paid when redeeming the coupon and the amount of accumulated coupon income paid to the seller. When selling the security the interest on which, included into the composition of incomes in the procedure provided for by this Paragraph, was paid by the issuer thereof while the security was in the possession of a taxpayer, the amount received from the purchaser of such security shall be recognized as interest.
 7. A taxpayer who determines incomes and outlays by using the method of calculation and who makes transactions in state and municipal securities circulated on the organized securities market, the accumulated interest (coupon) income on which is included into the price of deal when selling them, shall determine incomes in the from of interest subject to the following provisions. If prior to the expiry of a reporting (tax) period a security is not sold, the taxpayer shall be obliged on the last day of the reporting (tax) period to determine the amount of income in the form of interest falling at this period as a result of calculation.
 With this, as income for the reporting (tax) period in the form of interest there shall be recognized the difference between the amount of accumulated interest (coupon) income, calculated as on the end of a reporting (tax) period in compliance with the terms and conditions of the issue, and the amount of accumulated interest (coupon) income calculated as on the end of the previous tax period, if after the end of the previous tax period the issuer has not paid the interest (has not redeemed coupons).
 If the issuer paid out interest (redeemed coupons) during the current reporting (tax) period, then, in addition to the income in the form of interest calculated and accounted while making such payments (redemption) in compliance with Paragraph Four of this Item, the income in the form interest shall be taken as equal to the amount of accumulated interest (coupon) income calculated as on the end of said reporting (tax) period.
 When paying interest (redeeming coupons) for the first time within a report (tax) period, the income in the form of interest shall be calculated as a difference between the amount of the interest being paid (of the coupon being redeemed) and the amount of accumulated interest (coupon) income calculated as on the end of the previous tax period . When making subsequent payments of interest (redeeming coupons) during a report (tax) period, income in the form of interest shall be taken as equal to the amount of paid out interest (of the redeemed coupon).
 If said security was acquired during the current tax period, the calculation of income in the form of interest shall be effected in compliance with the provisions of Paragraphs from One to Four, where the amount of accumulated interest (coupon) income calculated as on the end of the previous tax period shall be replaced while making the calculations by the amount of the accumulated interest (coupon) income paid by the taxpayer to the seller of the security.
 When selling said security, the income in the form of interest shall be calculated in compliance with the provisions of Subitems from 1 to 4 of this Item, where the amount of accumulated interest (coupon) income calculated as on the end the reporting (tax) period shall be replaced while making calculations by the amount of accumulated interest (coupon) calculated as on the date of sale.

Article 329. Procedure for Keeping Tax Records in the Sale of Securities


 Recognised as an income from operations with securities shall be the earnings from the sale of securities in conformity with the terms of the contract of sale.
 Incomes and outlays on operations with securities shall be recognized in compliance with the procedure established by Articles 271 or Article 273 of this Code depending on the procedure for recognition of incomes and outlays applied by a taxpayer.
 When selling securities, the price of acquiring sold securities calculated subject to the method for recording securities established by a taxpayer (FIFO, LIFO or on the basis of the price of one unit) shall be recognized as an outlay.
 If into the price of sale of state and municipal securities circulated on the organised securities market is included a part of the accumulated coupon income, the sum of the income and of the outlays on such securities shall be calculated without the accumulated coupon income.
 The profit (loss) from the sale of securities in selling the securities circulated on the organised securities market, as well as of those not circulated on the organised securities market, shall be reflected in separate tax recording.
 Interest income on state and municipal securities, in respect of which the deduction of a part of accumulated interest income from the price of a deal is stipulated, shall be determined as on the date of sale thereof on the basis of a contract of purchase and sale subject to the provisions of Article 328 of this Code and shall be shown in tax records on the basis of a certificate of the person in charge of calculating profit (income) from transactions in securities.

Article 330. Specifics in Keeping Tax Records on the Incomes and Outlays of Insurance Institutions


 Taxpaying insurance institutions shall keep tax records on the incomes (outlays) derived (made) on contracts of insurance, co-insurance and re-insurance, on concluded contracts and on kinds of insurance.
 A taxpayer's incomes in the form of the total sum of an insurance premium due to him shall be recognized as on the date of arising the taxpayer's liability with regard to the insurant under a contract resulting from the terms and conditions of contracts of insurance, coinsurance and re-insurance, regardless of the procedure for paying the insurance premium indicated in the appropriate contract (safe for longterm life insurance contracts). As regards long-term contracts related to life insurance, the income in the form of a part of an insurance premium shall be recognized at the moment of emerging the taxpayer's right to the receipt of a regular insurance premiums in compliance with the terms and conditions of said contracts.
 A taxpayer in the procedure and on the conditions which are established by the legislation of the Russian Federation shall form insurance reserves. Taxpayers shall show changes in the amounts of insurance reserves for each type of insurance.
 Insurance payments under a contract subject to making under the terms and conditions of said contract shall be included into the composition of outlays as on the date of arising a taxpayer's liability to pay out insurance money in favor of the insurant or insured persons (when insuring liability - in favor of the beneficiary) with regard to an insured accident which has actually occurred, shown as an absolute sum of money which should be calculated in compliance with the laws of the Russian Federation and rules of insurance. Income (outlay) in the form of reimbursement for a share of insurance payments shall be recognized on the date of arising a re-insurer's liability to make payment to re-insurant in connection with an insured accident which has actually occurred shown as an absolute sun of money in compliance with the terns and conditions of the contract of re-insurance.
 The amounts of reimbursement due to a taxpayer as result of answering actions of recourse or acknowledged by guilty persons shall be regarded as an income:
 on the date of entry of a court decision into legal force;
 on the date of assuming by a guilty person the liability in writing to compensate for caused damage.
 With this, the share of said amounts subject to reimbursement to reinsurers by re-insurants shall be included into the incomes (outlays) of the re-insurant and re-insurer accordingly at the moment established for said taxpayers in compliance with this Article.
 The taxpayer shall keep records of insurance premiums (fees) under contracts of co-insurance insomuch as they fall at the share of the taxpayer in compliance with the terms and conditions of these contracts.

Article 331. Specifics in Keeping Tax Records of the Bank's Incomes and Outlays


 Tax paying banks shall keep the tax records of the incomes and outlays received (made) in performing banking activity on the grounds of reflecting the operations and the deals in analytical accounting in conformity with the procedure for recognising the incomes and the outlays laid down in this Chapter.
 Analytical accounting of the incomes and outlays received (made) in the form of interest on debt liabilities shall be kept in accordance with the order envisaged by Article 328 of the present Code.
 The incomes and outlays on the economic and other operations, related to future reporting periods on which in the current reporting period advance payments were made shall be recorded in the sum of the funds to be referred to outlays at the beginning of the reporting period which they concern. Analytical accounting of the incomes and outlays on economic operations shall be kept in the context of every contract reflecting the date and the sum of the received (issued) advance payment, as well as the period in the course of which the said sum shall be referred to the incomes and outlays.
 The commission fees for services rendered on correspondent relations, paid by the taxpayer, and the outlays on cash-settlement servicing, on opening accounts in other banks and on other similar operations shall be referred to the outlays as on the date of performing the operation, if in conformity with the contract are envisaged settlements on each particular operation, or as on the last day of the reporting (tax) period. The taxpayer shall keep records on the incomes involved in the performance of operations for the clients' cash-settlement servicing in a similar order for correspondent relations and other similar operations.
 The sum of the positive (negative) differences arising from revaluating the cost of discounting noble metals in case it is changed shall be included in the composition of incomes in the form of the sum of the balance of an excess of the positive revaluation over the negative, and into the composition of the outlays in the form of the sum of the balance of an excess of the negative revaluation over the positive, as on the last day of the reporting (tax) period. In the sale of noble metals, seen as income shall be the positive difference between the price of sale and the cost of discounting of such noble metals as on the date of their sale, and as outlays - the negative difference. Seen as the cost of discounting of noble metals shall be their purchase cost taking account of the revaluation carried out in the course of the time when such metals are at the disposal of the taxpayer, in conformity with the requirements of the Central Bank of the Russian Federation.
 When recording operations with the financial instruments of futures deals whose basic assets are foreign currency and noble metals, the claims and liabilities shall be defined taking account of the revaluation of the cost of the basic asset in connection with the growth (fall) of the exchange rate of foreign currencies to the Russian rouble and of the prices on noble metals established by the Central Bank of the Russian Federation.
 In the deals involved in the purchase and sale operations with precious stones, the taxpayer shall reflect in the tax records the qualitative and the value (the mass and the price) characteristics of the acquired and sold precious stones. The revaluation of the purchase cost of precious stones up to the price list prices shall not be recognised as taxpayer's income (outlays). If the sold precious stones are withdrawn, the income (loss) shall be defined in the form of the difference between the price of sale and the cost of discounting. Seen as the cost of discounting shall be the price of acquisition of precious stones.
 Analytical accounting shall be kept on every purchase and sale contract on precious stones. In analytical accounting shall be reflected the dates of performance of purchase and sale operations, the purchase price and the sales price, as well as the quantitative and qualitative characteristics of the precious stones.

Article 332. Specifics in Keeping Tax Records on the Incomes and Outlays in the Execution of Contracts on Trust Management of Property


 Tax paying organisations which manage property under the terms of a contract on trust management shall be obliged to keep separate analytical accounting on the incomes and outlays connected with the execution of contracts of trust management, and on the incomes received in remuneration for trust management - in the context of every contract on the trust management.
 Analytical accounting shall supply information which makes it possible to identify the founder of the contract on trust management and the beneficiary, the date of entry into force and the date of termination of a contract on trust management, the cost and the composition of property received into trust management, and the procedure and the deadlines for making settlements on the trust management. When making deals with the property received into trust management, the incomes and outlays shall be reflected in accordance with the rules for the formation of the incomes and the outlays established by this Chapter.
 The incomes of the founder of the management and of the trust manager under a contract on the trust management shall be formed in every reporting (tax) period, irrespective of whether making settlements in the course of the term of validity of the contract on the trust management is or is not envisaged by such contract.
 The sum of remuneration to the trust manager shall be recognised as the outlays on the contract on the trust management; it reduces the sum of the income derived from operations with the property handed over to trust management. If the third person - the beneficiary - is envisaged as the beneficiary under a contract on the trusted management, the outlays (losses) (safe for remuneration) in the execution of the contract on trust management shall not reduce the incomes received by the founder of the contract on the trust management on other grounds.
 When the depreciated property is returned to the founder of the contract on the trust management, such property shall be included in the same depreciation group, and the depreciation shall be charged by the same rates and in the same order as before the start of the contract on the trust management. The depreciation charged for the whole period of use of such property before the date of its return to the founder of the contract on the trust management shall be taken into account when defining the residual cost of such property. If the beneficiary is a third person, the outlays (losses) from the reduction in the cost of such property when it is returned shall not be accepted for the reduction of the founder's tax base.

Article 333. Specifics in Keeping Tax Records on the Incomes and Outlays in REPO Deals with Securities


 The analytical accounting of the purchase and sale deals with securities with an obligatory redemption in the second part of REPO operations shall be kept in the analytical registers of tax records especially assigned for this purpose, in the context of every contract, for monetary funds in foreign currency - in the double estimate: in foreign currency and in roubles.
 The cost of discounting of the securities subject to redemption in the execution of the second part of the contracts on the purchase and sale of securities with reverse redemption, shall be effected by tax payers who are sellers of securities in execution of the first part of the contracts on the purchase and sale of securities with reverse redemption.
 Sellers of securities in the reverse part of REPO operations shall record the securities from the date of their acquisition in conformity with the first part of REPO operations until the time of their sale (of their redemption by the first participant in the deal).
 In the accounting shall be reflected the date of sale and the cost of the sold securities, subject to redemption in the execution of the second part of agreements on the purchase and sale of securities with reverse redemption, the date of redemption and the cost of the securities redeemed in execution of the second part of agreements on the purchase deals.
 The rise (fall) in the cost of such securities in connection with the growth (reduction) of the official exchange rates of foreign currencies to the Russian rouble shall not be recognised as income (outlay) on a REPO operation, and such change in the redemption price of the securities shall be taken into account by the taxpayer as extra-sales incomes (outlays).
 Similar liabilities on recording the said operation shall be imposed upon taxpayers who are buyers in the execution of the first part of agreements on the deals on the purchase and sale of securities with reverse redemption.

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