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 8.1
Chapter 26.1
A Taxation System for Agricultural Producers(Uniform Agricultural Tax)
Chapter 26.2
The Simplified Taxation System
Chapter 26.3
Taxation System in the Form of the Uniform Tax on theImputed Income for the IndividualKinds of Activity
Chapter 26.4
Taxation System, When Implementing Agreementsof Products' Sharing

Chapter 26.4. Taxation System, When Implementing Agreementsof Products' Sharing


Article 346.34. Principal Concepts Used in This Chapter


 For the purposes of this Chapter the following principal concepts shall be used therein:
 Investor shall mean a legal entity or an association of legal entities, established on the basis of an agreement of joint activity and not having the status of a legal entity, which invests own, borrowed or attracted assets (property and (or) property rights) into exploration, prospecting and extraction of mineral raw materials and is a user of mineral resources under the terms and conditions of an agreement of products' sharing (hereinafter mentioned in the Chapter as an agreement);
 Products shall mean a mineral extracted from the subsoil on the territory of the Russian Federation, as well as on the continental shelf of the Russian Federation, and (or) within the limits of the exclusive economic zone of the Russian Federation, on the subsoil tract provided to an investor, the quality of the former complying with an appropriate state standard of the Russian Federation, a branch standard, a regional standard, an international standard and, in the event of absence of said standards for an individual extracted mineral, to an organization's (enterprise's) standard.
 There may not be deemed as a mineral the products resulting from further processing (dressing, technological process) of a mineral and being products of the manufacturing industry;
 Output shall mean the quantity of the mining industry products and of products received as a result of quarrying contained in mineral raw materials (rock, fluid or another form), actually extracted from( drawn out of) the subsoil (waste, loss), the quality of the former complying with the state standard of the Russian Federation, a branch standard, regional standard, international standard and, in the event of the absence of said standards for an individual extracted mineral, with an organization's (enterprise's) standard, which is extracted by an investor, while carrying out works under an agreement, and decreased by the quantity of process loss within the limits of established normative standards. When implementing agreements, where the procedure for products' sharing, established by Item 2 of Article 8 of the Federal Law on Agreements of Products' Sharing, is applied, the share of the State in the total output shall constitute at least 32 per cent thereof;
 Products' sharing shall mean sharing of output in kind and (or) in value terms between the State and an investor in compliance with the Federal Law on Agreements of Products' Sharing;
 Profitable products shall mean products made within a report (tax) period, in the event of implementing an agreement, less the part of the products, whose value equivalent is used for paying the mineral resources extraction tax, and less compensation products;
 Compensation products shall mean a part of output under an agreement which does not have to exceed 75 per cent of the total output and, in the event carrying out extraction works on the continental shelf of the Russian Federation, 90 per cent of the total output transferred under the ownership of an investor for reimbursement of the expenses (reimbursable expenses), incurred by it, whose composition shall be established by an agreement in compliance with this Chapter;
 Sharing point shall mean a place of business accounting of products where the State shall deliver to an investor the part of output due to it under the terms and conditions of an agreement. In the event of oil production, the place of business accounting of products shall be defined, when using pipeline transportation, as the place where oil is delivered over a pipeline to a check-station and where its quantity is measured and quality determined, as well as where it is accounted as output and transferred to a trunk pipeline. In the event of oil transportation with the use of a transport mode other than a pipeline, the place of business accounting shall be defined as the place where oil is delivered to a check station and where the quantity thereof is measured and quality determined;
 Price of products shall mean the cost of products under the terms and conditions of an agreement, if not otherwise established by this Chapter;
 Oil price shall mean the oil selling price indicated by the parties to a transaction but not lower that the average price level of Urals crude oil within the report period determined as the sum of simple averages of purchasing and selling prices in world oil markets (in the Mediterranean and Rotterdam ones) for all days of sales divided by the number of days of sales in the appropriate report period. Average levels of Urals crude oil prices in world crude oil markets for an expired month (in the Mediterranean and Rotterdam ones) shall become public through official sources of information at latest on the 15th day of the next following month in the procedure established by the Government of the Russian Federation. In the absence of said information in reports of the official sources of information, the average level of Urals crude oil prices in world crude oil markets for an expired month (in the Mediterranean and Rotterdam ones) shall be determined by a taxpayer independently.

Article 346.35. General Provisions


 1. This Chapter shall establish a special tax treatment applicable, when implementing agreements, which are made in compliance with the Federal Law on Agreements of Products' Sharing, and shall meet the following conditions:
  1)  agreements are made after holding an auction sales for the purpose of obtaining the rights of using subsoil under the conditions, other than products' sharing, in the procedure and under the conditions, which are determined by Item 4 of Article 2 of the Federal Law on Agreements of Products' Sharing, and after declaring the auction sales as frustrated;
  2)  after implementing the agreements where the procedure for products' sharing, established by Item 2 of Article 8 of the Federal Law on Agreements of Products' Sharing, is applied, the share of the State in the total output amounts to at least 32 per cent of the total output;
  3)  agreements provide for the increase of the State's share of profitable products in the event of the improvement of investments efficiency indicators of the investor upon the implementation of the agreement. Investments efficiency indicators shall be established in compliance with the terms and conditions of the agreement.
 2. A taxpayer enjoying the right of applying the special tax treatment, when implementing agreements, shall submit to the tax bodies appropriate notices in writing and the following documents:
 an agreement on products' sharing;
 a decision on endorsing the results of an auction sales for obtaining the right to use a subsoil tract under the conditions, other than products' sharing, in compliance with the Law of the Russian Federation on Subsoil and on declaring the auction sales as frustrated in view of the participants' absence.
 3. For the purposes of this Chapter, the price of products (oil price) shall be applicable for determining the volume of compensation products to be transferred to an investor for sharing profitable products in value terms with the aim of determining taxable profits, as well as for reimbursing the investor's expenses related to paying taxes and fees in the instances provided for by this Chapter.
 4. The special tax treatment, established by this Chapter, shall be applicable within the whole time period of an agreements' currency.
 5. The special tax treatment, established by this Chapter, shall be applicable in respect of taxpayers and payers of the dues indicated in Article 346.36 of this Code.
 6. The special tax treatment, established by this Chapter, provides for the replacement of paying the aggregate of taxes and fees, established by the laws of the Russian Federation on taxes and fees, by the sharing of output in compliance with the terms and conditions of an agreement, safe for the taxes and fees whose payment is stipulated by this Chapter.
 7. Upon implementing an agreement containing the conditions of output sharing in compliance with Item 1 of Article 8 of the Federal Law on Agreements of Products' Sharing, an investor shall pay the following taxes and fees:
  -  the value-added tax;
  -  the profit tax of organizations;
  -  the uniform social tax;
  -  the natural resources extraction tax;
  -  payments for the use of natural resources;
  -  payment for negative influence upon the environment;
  -  payment for the use of water objects;
  -  the state duty;
  -  the land tax;
  -  the excise duty, safe for the excise duty payable for the excisable mineral raw materials provided for by Subitem 1 of Item 2 of Article 181 of this Code.
 An investor shall be exempt from paying regional and local taxes and fees in compliance with this Chapter by decision of an appropriate legislative (representative) state power body or the representative body of the local self-government body.
 The amounts of the value-added tax, the uniform social tax, the natural resources extraction tax, payments for the use of natural resources, payment for the use of water objects, the state duty, customs fees, the land tax, the excise duty, as well as the amount of payment for negative influence upon the environment, shall be reimbursable in compliance with the provisions of this Chapter.
 An investor shall not pay the tax on the property of organizations in respect of permanent assets, non-pecuniary assets, resources and expenditure which are in the taxpayer's balance sheet and are solely used for exercising the activity provided for by agreements. Where said property is used by an investor for the purposes, other that those connected with carrying out works under an agreement, it shall be liable to the tax on the property of organizations in the generally established procedure.
 A list of documents, whose filing with tax bodies exempts from paying said tax, shall be determined by the Government of the Russian Federation.
 An investor shall not pay the transport tax in respect of the transport vehicles owned by him (safe for passenger cars) which are used solely for the purposes of an agreement.
 A list of documents, whose filing with tax bodies exempts from paying said tax, shall be determined by the Government of the Russian Federation.
 When using transport vehicles for the purpose, other than those provided for by an agreement, the transport tax shall be payable in the generally established procedure.
 8. When implementing an agreement containing the conditions of products' sharing in compliance with Item 2 of Article 8 of the Federal Law on Products' Sharing Agreements, an investor shall pay the following taxes and fees:
  -  the uniform social tax;
  -  the state duty;
  -  customs fees;
  -  the value-added tax;
  -  payment for negative influence upon the environment.
 An investor shall be exempt from paying regional and local taxes and fees in compliance with this Chapter by decision of the appropriate legislative (representative) state power body or the representative local self- government body.
 9. There shall be exempt from the customs duty the commodities imported to the customs territory of the Russian Federation for the purpose of carrying out works under an agreement provided for by working schedules and estimates which are endorsed in the procedure established by the agreement, as well as the products made in compliance with the terms and conditions of an agreement and exported from the customs territory of the Russian Federation.
 A list of documents, whose filing with the customs bodies shall exempt from paying said text, shall be determined by the Government of the Russian Federation.
 10. When carrying out an agreement, the object of taxation, tax base, tax period, tax rate and procedure for tax estimation in respect of the taxes indicated in Items 7 and 8 of this Article, shall be determined subject to the specifics stipulated by the provisions of this Chapter effective on the date the agreement's entry into force.
 11. In the event of changing during an agreement's currency the names of any of the taxes and fees, indicated in this Code, without changing, in so doing, taxation elements, such taxes and fees shall be estimated and paid under their new names, while implementing the agreement.
 12. In the event of changing the procedure for paying taxes and fees within the currency of an agreement, as well as in the event of changing the forms, procedure for filling in, and time for submitting, tax declarations without changing the tax base, tax rate and procedure for calculating a tax (fee collection elements), the taxes and fees shall be paid, as well as tax declarations shall be submitted, in compliance with the effective laws on taxes and fees.
 13. In the event of changing within the currency of an agreement the rate of the value-added tax, said tax shall be estimated and paid according to the tax rate established in compliance with Chapter 21 of this Code.
 14. Where normative legal acts of legislative (representative) state power bodies and of representative local self-government bodies do not provide for exempting an investor from paying regional and local taxes and fees, the investor's expenses, related to paying said taxes and fees, shall be reimbursable to the investor at the expense of the appropriate decrease of the share of output, transferable to the State, insofar as it concerns the appropriate subject of the Russian Federation, by the amount equivalent to the sum of said taxes and fees actually paid.
 15. When implementing agreements made prior to entry into force of the Federal Law on Agreements of Products' Sharing, there shall be applicable the conditions of exempting from taxes, fees and other obligatory payments, as well as the procedure for estimating, paying and returning (reimbursing) payable taxes, fees and other obligatory payments, which are provided for by said agreements. In the event of incompliance of the provisions of said Code and (or) other legislative acts of the Russian Federation on taxes and fees, of legislative acts of the subjects of the Russian Federation on taxes and fees, normative legal acts of representative local self government bodies of taxes and fees to the conditions of said agreements, the conditions of said agreements shall be applicable.

Article 346.36. Taxpayers and Payers of Fees, When Implementing Agreements. Authorized Representatives of Taxpayers and Payers of Fees


 1. As taxpayers and payers of fees payable, when applying the special tax treatment established by this Chapter, there shall be recognized organizations which are investors under an agreement in compliance with the Federal Law on Agreements of Products' Sharing (hereinafter referred to in this Chapter as taxpayers).
 2. A taxpayer shall be entitled to entrust an operator by approbation thereof with the discharge of his duties connected with application of the special tax treatment established by this Chapter, when implementing agreements. An operator shall exercise in compliance with this Code the powers granted to him by a taxpayer on the basis of the letter of attorney attested and certified by a notary which is issued in the procedure, established by civil laws of the Russian Federation, as the taxpayer's authorized representative.

Article 346.37. Specifics of Determining the Tax Base, of Estimating and Paying the Natural Resources Extraction Tax, When Implementing Agreements


 1. The provisions of this Article shall apply, when implementing agreements containing the conditions of output sharing in compliance with Item 1 of Article 8 of the Federal Law on Agreements of Products' Sharing.
 2. Taxpayers shall determine the payable amount of the national resources extraction tax in compliance with Chapter 26 of this Code, subject to the specifics established by this Article.
 3. The tax base, when producing oil and gas condensate at oil-gas condensate fields, shall be determined as the quantity of extracted minerals in kind according to Article 339 of this Code.
 4. The tax base shall be determined separately for each agreement.
 5. The tax rate, when producing oil and gas condensate at oil-gas condensate fields, amount s to 340 roubles per one ton. With this, said tax rate shall be applicable together with the coefficient showing the dynamics of world oil prices - Kts.
 This coefficient shall be determined by a taxpayer every month independently on the basis of the following formula:
  Kts = (TS-8) x R/252,
 Where
 Ts is the average Urals crude oil price level for a tax period in US dollars per one barrel;
 R is the average exchange rate of the US dollar in respect of the Russian Federation rouble for a tax period established by the Central Bank of the Russian Federation.
 The average exchange rate of the US dollar in respect of the Russian Federation rouble for a tax period, established by the Central Bank of the Russian Federation, shall be determined by a taxpayer independently as the simple average of the US dollar exchange rate in respect of the Russian Federation rouble, established by the Central Bank of the Russian Federation, for all days of an appropriate tax period.
 The average level of Urals crude oil prices shall be determined as the sum of simple averages of purchase and selling prices at the world crude oil markets (the Mediterranean and Rotterdam ones) for all days of sales divided by the number of sales days in an appropriate tax period.
 Average levels of Urals crude oil prices at the world crude oil markets (the Mediterranean and Rotterdam ones) for an expired month shall be made public every month at latest on the 15th day of the next following month through official sources of information in the procedure established by the Government of the Russian Federation.
 In the absence of said information in official sources of information, the average level of Urals crude oil prices at the world crude oil markets (the Mediterranean and Rotterdam ones) for an expired tax period shall be independently determined by a taxpayer.
 The coefficient (Kts) estimated in the procedure determined by this Article, shall be approximated to the forth character in compliance with the effective procedure for approximation.
 The amount of the natural extraction resources tax, when producing oil and gas condensate at oil-gas condensate fields, shall be estimated as the product of an appropriate tax rate calculated subject to the coefficient (Kts) and the amount of the tax base determined in compliance with this Article.
 6. When implementing agreements, the tax rates established by Article 342 of this Code, while extracting minerals, shall be applicable with the coefficient 0,5, safe for oil and gas condensate.
 7. The tax rate, established by Item 5 of this Article, shall apply, when producing oil and gas condensate at oil-gas condensate fields with the coefficient 0,5 pending the attainment of the limit of commercial production of oil and gas condensate that may be established by an agreement.
 Where an agreement establishes the limit of oil and gas condensate commercial extraction, upon reaching such limit there shall be applied the coefficient 1 which shall not be changeable within the total period of the agreement's currency.

Article 346.38. Specifics of Determining the Tax Base, of Calculating and Paying the Profit Tax of Organizations, When Implementing Agreements


 1. The provisions of this Article shall apply, when implementing the agreements providing for the procedure for products' sharing established by Item 1 of Article 8 of the Federal Law on Agreements of Products' Sharing.
 2. Taxpayers shall determine the amount of the payable profit tax of organizations (hereinafter referred to in this Article as the tax) in compliance with Chapter 25 of this Code, subject to the specifics established by this Article.
 3. As the object of taxation, there shall be deemed the profit derived by a taxpayer in connection with implementing an agreement.
 For the purposes of this Article, as a taxpayer's profit there shall be deemed the profit derived from implementing an agreement less the amount of expenses determined in compliance with this Article.
 Where a party to an agreement is an association of organizations that does not have the status of a legal entity, the income, gained by each organization being a member of said association, shall be determined in proportion to the share of the appropriate participant in the total income of such association for a report period.
 4. As taxpayers' income derived from implementing an agreement, there shall be deemed the cost of profitable products possessed by an investor under the conditions of the agreement, as well as off-sale income determined in compliance with Article 250 of this Code.
 The cost of profitable products shall be determined as the product of the volume of profitable products and the output price established by an agreement, except for the products' price (oil price) determined in compliance with this Chapter.
 5. As a taxpayer's expenses, there shall be deemed reasonable expenses proved by documents which are made (incurred) by a taxpayer, when implementing an agreement.
 The expenses' composition, amount and procedure for recognition thereof shall be de determined in compliance with Chapter 25 of this Code subject to the specifics established by this Article.
 As reasonable expenses, for the purposes of this Article, there shall be recognized the expenses made (incurred) by a taxpayer in compliance with the schedule of works and the estimate of expenses, endorsed by the management committee, in the procedure provided for by an agreement, as well as the off-sale expenses which are directly connected with the agreement's implementation.
 6. For the purposes of this Chapter, a taxpayer's expenses shall be subdivided into:
  1)  the expenses reimbursable at the expense of compensation products (reimbursable expenses);
  2)  the expenses decreasing the tax base in respect of a tax.
 7. As reimbursable expenses, there shall be recognized the expenses made (incurred) by a taxpayer within a report period for the purpose of carrying out works under an agreement in compliance with the working schedule and the estimate of expenses. There shall not be recognized as reimbursable expenses:
  1)  those made (incurred) prior to entry of an agreement into force: for acquiring a geological information package for participation in an auction sales;
 for paying a fee for participation in an auction sales of the right to the use of a subsoil tract under the conditions of an agreement;
  2)  those made (incurred), as of the date of the agreement's entry into force:
 one-time payments for subsoil use in case of the onset of certain events stipulated by an agreement;
 the natural resources extraction tax;
 payments (interest) related to obtained credits and borrowed assets, as well as commission fees payable in connection with them, and other expenses connected with the receipt or use of borrowed assets for financing the activities under the agreement;
 the expenses provided for by Item 3 of Article 262 of this Code;
 the expenses provided for by Subitems 10 and 13 of Item 1 and by Subitem 5 of Item 2 of Article 365 of this Code.
 8. Reimbursable expenses, whose composition is provided for by a agreement made under this Article, shall be endorsed by the management committee in the procedure established by the agreement.
 For the purposes of this Article, the amount of reimbursable expenses shall be determined for each report (tax) period and shall be reimbursable to a taxpayer at the expense of compensation products in the procedure established by Item 10 of this Article.
 9. Into the composition of reimbursable expenses there shall be included the following:
  1)  the expenses made (incurred by a taxpayer prior to entry of an agreement into force. The expenses, made (incurred) prior to entry of an agreement into force, shall be deemed reimbursable, if the agreement is made in respect of mineral deposits which have not been mined before and which have not been previously recognized by the subsoil user of a subsoil tract for the purposes of the tax estimation in compliance with Chapter 25 of this Code. Said expenses have to be shown in the estimate of expenses presentable simultaneously with the estimate of expenses for the first year of works under an agreement and shall be reimbursable in the procedure and in the amount which are provided for by this Article. For the purposes of applying this Article, depreciation in respect of this type of depreciable property shall not be charged. Where under Article 256 of this Code expenses pertain to depreciable property, they shall be reimbursed in the following procedure:
 if said expenses are made (incurred) by a taxpaying Russian organization, they shall be reimbursable in the amount not exceeding the residual value of depreciable property determined in compliance with Article 257 of this Code;
 if said expenses are made (incurred) by a taxpaying foreign organization, they shall be reimbursable in the amount exceeding the market prices' level;
  2)  expenses made (incurred) by a taxpayer, as of the date of an agreement's entry into force and within the whole period of its currency. With this, the following specifics shall be established in respect of said expenses:
 the expenses, related to the development of natural resources, which are indicated in Item 1 of Article 261 of this Code, as well as similar expenses related to adjacent subsoil tracts, if it is provided for by an agreement, shall be evenly included into the composition of expenses within 12 months;
 the expenses, related to acquisition, installation, production, delivery of depreciable property (fixed assets and non-pecuniary assets) and its adjustment to the condition when it is fit for using, shall be includable into the composition of reimbursable expenses in the amount of actually incurred outlays on condition of their inclusion into the working schedule and the estimate of expenditure subject to the restrictions established by the agreement. Depreciation in respect of such expenses shall not be charged in the procedure established by this Code;
 the expenses, made (incurred) in the form of allocations to the liquidation fund for financing liquidation works, shall be accountable for the purposes of taxation in the amount and in the procedure which are established by an agreement. The procedure for forming and using the liquidation fund shall be established by the Government of the Russian Federation;
  -  the expenses connected with the maintenance and operation of the property, transferred by the State to a taxpayer for a gratuitous use in compliance with Article 11 of the Federal Law on Agreements of Products' Sharing, shall be accountable for the purposes of taxation in the amount of actually made (incurred) expenses;
  -  managerial expenses connected with an agreement's implementation comprising the expenses related to paying for a taxpayer's rent of offices, including those situated behind the boundaries of the Russian Federation, outlays on maintenance thereof, on informational and consulting services, representative expenses, expenses related to advertising and other managerial expenditure shall be reimbursable under the conditions of an agreement in the amount of the normative standard of managerial expenditure established by the agreement, but at most 2 per cent of the total amount of expenditure reimbursable to a taxpayer in a report (tax) period. The excess of the amount of managerial expenses over the normative standard established by this Item, shall be accountable, when estimating an investor's tax base in respect of the tax.
 10. For the purposes of this Chapter, reimbursable expenses shall be subject to reimbursement to a taxpayer in the amount not exceeding the limit of compensation products which may not exceed the amount determined in compliance with Article 346. 34 of this Code.
 Compensation products for a report (tax) period shall be estimated by way of dividing the amount of expenses, reimbursable to a taxpayer, by the price of products determined in compliance with the conditions of an agreement or by the oil price determined in compliance with this Chapter.
 If the amount of reimbursable expenses is less than the limit of compensation products in a report (tax) period, the total amount of reimbursable expenses shall be reimbursed to the taxpayer in said period. If the amount of reimbursable expenses exceeds the limit of compensation products in a report (tax) period, the expenses shall be reimbursed in the amount of said limit. Reimbursable expenses, which are mot reimbursed in a report (tax) period, shall be subject to inclusion into the composition of reimbursable expenses of the next following report (tax) period.
 Capital outlays shall be reimbursable on condition of meeting the requirement of using a share of commodities of Russian origin, when carrying out works under an agreement, which is established by Item 2 of Article 7 of the Federal Law on Agreements of Products' Sharing. Failure to meet said requirements shall be a ground for the refusal to reimburse appropriate expenses of an investor. With this, the procedure for depreciation of property, established by Articles from 256 to 259 of this Code, shall extend to acquired equipment and other property.
 11. The expenses, decreasing the tax base of the tax, shall include the expenses accountable for taxation purposes in compliance with Chapter 25 of this Code and not included into the composition of reimbursable expenses determined in compliance with the provisions of this Article. The expenses, indicated in this Item, shall not include the amount of the natural resources extraction tax.
 12. For the purposes of this Chapter, the following procedure for recognizing receipts and expenditures shall apply:
  1)  as regards the income received by a taxpayer as a share of profitable products, the last day of a report (tax) period, when the profitable products were shared, shall be recognized as the date of receiving the income;
  2)  as regards other types of receipts and expenditures, the procedure for recognizing receipts and expenditures, established by Chapter 25 of this Code, shall apply.
 13. For the purposes of this Article, as the tax base there shall be recognized the taxable profit in monetary terms determined in compliance with Item 3 of this Article.
 The tax base shall be determined separately for each agreement.
 14. Where the tax base, estimated in compliance with the provisions of this Article, is negative for an appropriate tax period, it shall be recognized as equal to zero for this tax period. A taxpayer shall be entitled to reduce the tax base by the received negative value within subsequent tax periods during 10 years following the tax period when the negative value was received but no longer than the currency of the agreement.
 15. The amount of the tax rate shall be determined in compliance with Item 1 of Article 284 of this Code. The tax rate, effective at the date of an agreement's entry into force, shall apply within the whole period of this agreement's currency.
 16. Taxpayers shall estimate the tax base subject to the results of each report (tax) period on the basis of tax registration data. The tax registration shall be carried out in compliance with Chapter 25 of this Code. The procedure for tax registration shall be established by a taxpayer in its accounting policy for taxation purposes endorsed in the established procedure.
 17. Tax and report periods with regard to a tax shall be established in compliance with Article 285 of this Code.
 18. The procedure for estimating the tax (advance payments) and payment time shall be determined in compliance with Chapter 25 of this Code.
 Where the tax is calculated in foreign currency, a taxpayer shall pay the tax in this or other foreign currency quoted by the Central Bank of the Russian Federation or shall pay the equivalent thereof in roubles estimated on the basis of the official exchange rate of this currency established by the Central Bank of the Russian Federation, as on the date of paying the tax.
 19. The specifics of estimating and paying the tax by a taxpayer, having separate subdivisions, shall be determined by Article 288 of this Code. With this, the amounts of the tax (advance payments), subject to entering to the revenues of the budgets of the subjects of the Russian Federation and of local budgets, shall be payable by a taxpayer at the location of the subsoil tract granted for use under an agreement.
 20. For the purposes of this Article, a taxpayer shall be obliged to keep separate accounts of receipts and expenditures regarding operations arising from the implementation of an agreement.
 In the absence of the separate accounting, the procedure for profit taxing established by Chapter 25 of this Code without taking into account the specifics, set by this Article, shall apply.
 21. A taxpayers' receipts and expenditures concerning other types of activities, which are not connected with the implementation of an agreement, including incomes in the form of remuneration for exercising the functions of an operator and (or) for the sale products possessed by the State under the conditions of the agreement, shall be taxable in the procedure established by Chapter 25 of this Code.
 The profits, derived by an investor from selling compensation products, shall be taxable in the procedure, established by Chapter 25 of this Code, and shall be determined as proceeds gained from selling compensation products (determined in compliance with Article 249 of this Code) decreased by the amount of expenses, connected with the sale of said products (which are determined in compliance with Article 253 of this Code) and not included into the cost of compensation products, decreased by the cost of compensation products determined in compliance with Item 10 of this Article.
 If a taxpayer incurs losses as a result of compensation products' sale, it shall be taken into account for the purposes of taxation in the procedure and on the conditions established by Article 283 of this Code.

Article 346.39. Specifics of Paying the Value-Added Tax, When Implementing Agreements


 1. When implementing agreements, the value-added tax (hereinafter referred to as the tax) shall be payable in compliance with Chapter 21 of this Code subject to the specifics established by this Article.
 2. When implementing agreements, the tax rate, effective in the appropriate tax period in compliance with Chapter 21 of this Code, shall apply.
 3. If the amount of tax deductions based on the results of a tax period, when carrying out works under an agreement, exceeds the total amount of the tax estimated with regard to commodities (works and services) sold (delivered, carried out or rendered) in a report (tax) period (and likewise in the absence of said sale), the gained difference shall be subject to reimbursement (offset, return) to a taxpayer in the procedure established by Article 176 of this Code.
 4. In the event of non-observance of the time period for reimbursement (return) established by Article 176 of this Code, the amounts returnable to a taxpayer, shall be decreased on the basis of one 360th of the refinancing rate of the Central Bank of the Russian Federation for each day of the delay (when keeping accounts in the currency of the Russian Federation) or one 360th of the LIBOR rate effective in the appropriate period for each day of delay (when keeping accounts in foreign currency).
 5. There shall not be taxable (exempt from taxation):
 transfer of property on a gratuitous basis, which is necessary for carrying works under an agreement, between the investor under the agreement and the operator of the agreement in compliance with the working schedule and the estimate of expenditure endorsed in the procedure established by the agreement;
 transfer by the organization, being a member of an association of organizations without the status of a legal entity, which acts as an investor under the agreement, to other participants of such association an appropriate share of output received by the investor under the conditions of the agreement;
 transfer by a taxpayer under the state ownership of property, which is newly made or acquired by the taxpayer and which has been used for carrying out works under the agreement and is returnable to the State in compliance with the conditions of the agreement.

Article 346.40. Specifics of Submitting Tax Declarations, When Implementing Agreements


 1. As regards the taxes provided for by Article 346.36 of this Code, a taxpayer shall submit to tax bodies at the location of the subsoil tract, granted for use under the conditions of an agreement, tax declarations in respect of each tax for each agreement separate from other activities.
 If the subsoil tract, granted for use under the conditions of an agreement, is situated on the continental shelf of the Russian Federation and (or) within the limits of the exclusive economic zone of the Russian Federation, the taxpayer shall submit tax declarations in respect of the taxes provided for by Article 346.35 of this Code, to tax bodies at the location thereof.
 2. The forms of tax declarations, indicated in Item 1 of this Article, shall be developed and endorsed by the Ministry of Taxation of the Russian Federation.
 3. Instructions for filling in tax declarations shall be developed and endorsed by the Ministry of Taxation of the Russian Federation by approbation of the Ministry of Finance of the Russian Federation.
 4. A taxpayer shall submit annually, at latest on December 31 of the year preceding the one being planned, to the tax bodies, indicated in Item 1 of this Article, the working schedule and the estimate of expenditure under the agreement for the next following year endorsed in the procedure established by the agreement.
 As regards newly made agreements, a taxpayer, prior to the start of works, shall submit to the tax bodies, indicated in Item 1 of this Article, the working schedule and the estimate of expenditure for the current year endorsed in the procedure established by the agreement.
 In the event of introducing amendments and (or) additions into the working schedule and the estimate of expenses, a taxpayer shall be obliged to present said amendments and (or) additions at latest in 10 days, as of the date of their endorsement in the procedure established by the agreement.
 Article 346.41 Specifics of Registering Taxpayers, When implementing Agreements
 1. Taxpayers shall be subject to registration with the tax body at the location of the subsoil tract granted to an investor for use under the conditions of an agreement, safe for the instances provided for by Item 3 of this Article.
 2. If an association of organizations, not having the status of a legal entity, acts as an investor under an agreement, all the organizations within the composition of said association, safe for the instances, provided for by Item 3 of this Article, shall be subject to registration with the tax body at the location of the subsoil tract granted for use under the conditions of the agreement.
 3. If a subsoil tract, granted for use under the conditions of an agreement, is situated on the continental shelf of the Russian Federation and (or) within the limits of the exclusive economic zone of the Russian Federation, a taxpayer shall be registered with the tax body at the location thereof.
 4. Specifics of registering foreign organizations, acting as investors under an agreement or as the operator of an agreement, shall be established by the Ministry of Taxation of the Russian Federation.
 5. An application for registration with a tax body shall be submitted thereto in compliance with Items 1 and 3 of this Article within 10 days, as of the date of an appropriate agreement's entry into force.
 6. The form of the application for registration with a tax body shall be established by the Ministry of Taxation of the Russian Federation.
 7. When filing an application for registration with a tax body, a taxpayer, simultaneously with said application, shall file together with the documents indicated in Article 84 of this Code, the documents provided for by Item 2 of Article 346.35 of this Code.
 8. The form of the certificate of registration with a tax body of an investor under an agreement as a taxpayer, exercising the activity of the agreement's implementation, shall be established by the Ministry of Taxation of the Russian Federation.
 Said certificate has to contain the name of the agreement, the date of the agreement's entry into force and its currency, the denomination of the subsoil tract granted for use under the conditions of the agreement, an indication of its location, as well as an indication to the effect that this taxpayer is an investor under the agreement or the operator of the agreement and that in respect of this taxpayer the special tax treatment, established by this Chapter, shall apply.

Article 346.42. Specifics of Conducting Visiting Tax Inspections, When Implementing Agreements


 1. A visiting tax inspection may cover any period within an agreement's currency subject to the provisions of Article 87 of this Code starting from the date of the agreement's entry into force.
 2. For the purposes of tax control, an investor under an agreement or the operator of the agreement shall be obliged to keep basic documents, connected with tax calculation and payment, within the total period of the agreement's currency.
 3. A visiting tax inspection of an investor under an agreement or of the operator of the agreement in connection with the activities under the agreement may not exceed six months. When conducting visiting inspections of organizations having branches and representative offices, the time period for conducting an inspection shall be increased by one month for inspecting each branch and representative office.

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