Federal tax / Personal Income Tax
The State Duma has approved the first reading of amendments to the income tax law. It is proposed to introduce a new 35% rate of tax, applicable to taxable income in excess of Rbls 48 million (approximately US $10,500). The existing rates of 12%, 20% and 30% will continue to apply, but within modified bands. It is expected that the Law incorporating these amendments will be adopted soon and effective in respect of income received after 1 January 1996.
VAT / Application of Reduced Rate
The amended list of foodstuffs liable to a reduced 10% rate of VAT has been adopted by the Government with effect from 18 November 1995. The new list includes several items which were previously liable to a standard 20% VAT rate. It also defines in greater detail the meat and fish delicatessen products to which the reduced rate will not apply.
(Resolution of the Government of RF N 1120 dated 13 November 1995)
Customs Duties / Temporary Importation Regime
The Customs Committee has established a new procedure for extending the terms of the temporary importation or exportation regimes. The decision to extend either regime beyond the standard term of two years in a particular case will now be taken by the Committee only upon presentation of specified documents.
(Regulation of the State Customs Committee N 01-12/1296 of 25 October 1995)
Legal developments are reported in Tax News Reporter on official publication. This may be long after the law is issued.
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Tax News Reporter - 26 November 1995
