Article 242. Determining the Date of Disbursements and Other Rewards (Receipt of Incomes)

The date of disbursements and other rewards or receipt of incomes shall be determined as:

the day of charging disbursements and other rewards for the benefit of the worker (the natural persons for whose benefit the disbursements are made) - for the disbursements and other rewards charged by taxpayers listed in Subitem 1 of Item 1 of Article 235 of the present Code;

the date of disbursement of a remuneration to the person for whose benefit disbursements are made: for the taxpayers specified in Paragraph 4 of Subitem 1 of Item 1 of Article 235 of the present Code.

the day of actual receipt of a given income: for incomes from entrepreneurial or another professional activity and also other incomes relating to such an activity.

Article 243. Procedure for the Calculation of, Procedure and Term for the Payment of the Tax by Taxpayers Being Employers

1. Tax amount shall be calculated and paid by a taxpayer separately to the federal budget and each fund and it shall be determined as a relevant share of the tax base in percentage points.

2. The tax amount subject to payment to the Social Insurance Fund of the Russian Federation shall be subject to reduction by taxpayers by the sum of expenses they incurred on their own for state social insurance purposes as envisaged by Russian law.

The tax amount (sum of tax advance payment) subject to payment to the federal budget shall be reduced by taxpayers by the sum of insurance contributions (insurance contribution advance payments) they have accrued for the same period in respect of compulsory pension insurance (tax deduction) within the limits of such sums calculated on the basis of insurance contribution tariffs envisaged by Federal Law No. 167-FZ of December 15, 2001 on Compulsory Pension Insurance. In such a case the sum of tax deduction shall not exceed the tax sum (tax advance payment sum) payable to the federal budget that has been accrued for the same period.

3. During the accounting period according to the results of each calendar month taxpayers shall calculate monthly advance tax payment amounts on the basis of the amount of disbursements and other remunerations that had been accrued (effected, for taxpayers being natural persons) since the beginning of the tax period as of the end of a relevant calendar month and the tax rate. The sum of monthly advance tax payment payable for the accounting period shall be determined with the account taken of the amounts of monthly advance payment paid earlier.

Monthly advance payments shall be effected not later than the 15th day of next month.

According to the results of the accounting period taxpayers shall calculate the difference between the tax sum calculated on the basis of the tax base calculated as accruing and cumulative since the beginning of the tax period to the end of a relevant accounting period and the sum of monthly advance payments effected for the same period which is subject to payment within a term set for the purposes of filing a tax calculation.

In the accounting (tax) period the amount of applied tax deduction exceeds the amount of the insurance contribution actually paid for the same period such a difference shall be recognised as an understatement of tax amount payable from the 15th day of the month following the accounting (tax) period in the which the understatement occurred.

Information on the amounts of calculated and also paid advance payments, information on the amount of tax deduction the taxpayer has used and also on the amounts of insurance contributions actually paid for the same period shall be reflected by the taxpayer in a calculation filed not later than the 20th day of the month following the accounting period with the tax body according to the form approved by the Ministry of Taxation of the Russian Federation.

The difference between the tax amount payable according to the results of the tax period and the tax amounts paid over the tax period shall be paid within 15 days after the deadline for the filing of tax return for the tax period or shall be accepted to offset forthcoming tax payment or refunded to the taxpayer in the manner specified in Article 78 of the present Code. If according to the results of the tax period the amount of insurance contributions actually paid for this period for compulsory pension insurance (insurance contribution advance payments for compulsory pension insurance) exceeds the amount of tax deduction applied in respect of the tax the amount of such a surplus shall be recognised as a tax amount paid in excess and it shall be refundable to the taxpayer in the manner specified in Article 78 of the present Code.

4. Taxpayers shall keep record of accrued disbursable amounts and other remunerations, the tax amounts relating thereto and also the amounts of tax deductions for each natural person for whose benefit disbursements were effected.

5. Every quarter, not later than the 15th day of the month following the past quarter taxpayers shall provide information (reports) to the regional branches of the Social Insurance Fund of the Russian Federation according to the form approved by the Social Insurance Fund of the Russian Federation as concerning the amounts of:

1) of accrued tax to the Social Insurance Fund of the Russian Federation;

2) used towards the disbursement of temporary disability benefit, maternity benefit, the child-care benefit payable until the child is 1.5 year-old, child-birth benefit, the benefit payable to reimburse the value of the guaranteed list of services and social burial benefit, other types of state social insurance benefits;

3) allocated by them in the established manner to provide sanatorium and health resort services to employees and their children;

4) expenses subject to offset;

5) payable to the Social Insurance Fund of the Russian Federation.

6. The payment of the tax (advance tax payments) shall be effected by separate payment instructions to the federal budget, the Social Insurance Fund of the Russian Federation, the Federal Fund of Obligatory Medical Insurance of the Russian Federation and the territorial funds of obligatory medical insurance.

7. Taxpayers shall file a tax return for the purposes of the tax according to the form approved by the Ministry of Taxation of the Russian Federation not later than March 30 of the year following the past tax period. A copy of the tax return relating to the tax bearing an annotation entered by the tax body or another document confirming that the tax return has been filed with a tax body shall be filed by the taxpayer with the territorial body of the Pension Fund of the Russian Federation not later than July 1 of the year following the past tax period.

The tax bodies shall present the following to the bodies of the Pension Fund of the Russian Federation: copies of taxpayers' payment instructions whereby the tax has been paid and also other information required by the bodies of the Pension Fund of the Russian Federation for their pursuance of compulsory pension insurance, in particular, information classified as tax secret. The taxpayers acting as insureds in respect of compulsory pension insurance shall provide information and documents to the Pension Fund of the Russian Federation in compliance with the Federal Law on Compulsory Pension Insurance in the Russian Federation in respect of insured persons.

The bodies of the Pension Fund of the Russian Federation shall provide information to the tax bodies on natural persons' incomes from individual personal accounts opened for the purposes of individual (personal) record-keeping.

8. Isolated units having a separate balance sheet, settlement bank account and accruing disbursable amounts and other remunerations for the benefit of natural persons shall perform the organisation's duty of paying the tax (making tax advance payments) and also the duty of filing tax calculations and tax returns at their location.

The amount of the tax (tax advance payment amount) payable at the location of an isolated unit shall be determined on the basis of the tax base relating to such a unit.

The amount of the tax payable at the location of an organisation incorporating isolated units shall be determined as a difference between the sum total of the tax payable by the organisation as a whole and the aggregate sum of the tax payable at the location of the organisation's isolated units.

Article 244. Calculation Procedure, the Procedure and Term for the Payment of the Tax by Taxpayers Not Being Employees

1. The calculation of the sums of advance payments payable in the tax period by the taxpayers specified in Subitem 2 Item 1 Article 235 of the present Code shall be done by the tax body proceeding from the tax base of a given taxpayer for the preceding tax period and the rates specified in Item 3 Article 241 of the present Code, except as otherwise provided by Items 2 and 6 of the present article.

2. If taxpayers begin to pursue entrepreneurial or another professional activity after the beginning of next tax period they shall within five days after the expiration of one month after the date of commencement of the activity file a tax return with the tax body at the place of their registration including the indication of the would-be income for the current tax period. In such a case the amount of the would-be income (the amount of would-be expenses) connected with the production of the incomes shall be determined by the taxpayer on his own.

The calculation of advance payment amounts for the current tax period shall be done by a tax body proceeding from the amount of would- be income with the account taken of the expenses relating to the production thereof and the rates specified in Item 3 Article 241 of the present Code.

3. Should a significant (by over 50 per cent) increase in income occur in the tax period, a taxpayer shall (may, in the case of a significant decrease in income) file a new tax return including the indication of the amounts of would-be income for the current tax period. In such a case the tax body shall review tax advance payments for the current tax period relating to forthcoming due dates within five days after the time when the new tax return was filed. The difference received as a result of such a review shall be payable within the term set for next advance payment or shall be accepted to offset forthcoming advance payments.

4. Advance payments shall be effected by a taxpayer under tax notices:

1) for the months of January - June: not later than July 15 of the current year at the rate of half annual advance payment amount;

2) for the months of July - September: not later than October 15 of the current year at the rate of quarter annual advance payment amount;

3) for the months of October - December: not later than January 15 of the next year at the rate of quarter annual advance payment amount.

5. The calculation the tax according to the results of a tax period shall be performed by the taxpayers specified in Subitem 2 Item 1 Article 235 of the present Code, except lawyers, on their own proceeding from all incomes received in the tax period with the account taken of the expenses relating to the production of these incomes and the rates specified in Item 3 Article 241 of the present Code.

In such a case tax amount shall be calculated by a taxpayer separately for each fund and it shall be determined as a relevant percentage share of the tax base.

The difference between the advance payment amounts paid for the tax period and the tax amount payable under the tax return shall be payable not later than July 15 of the year following the tax period or shall be accepted to offset forthcoming tax payments or be refundable for the benefit of the taxpayer in accordance with the procedure provided in Article 78 of the present Code.

6. The calculation and payment of the tax on the incomes of lawyers shall be effected by the Bars (institutions thereof) in accordance with the procedure specified in Article 243 of the present Code.

7. The taxpayers specified in Subitem 2 Item 1 Article 235 of the present Code shall file a tax return not later than April 30 of the year following the past tax period.

When the tax return is being filed lawyers shall also file with the tax body a statement issued by a Bar (institutions thereof) stating the amounts of tax paid for them for the past tax period.

Article 245. Peculiarities of Tax Calculation and Payment by Specific Categories of Taxpayers

1. The taxpayers specified in Subitem 2 of Item 1 of Article 235 of the present Code shall not calculate and pay the tax in as much as it concerns the amount of the tax entered in the Social Insurance Fund of the Russian Federation.

2. The following are relieved from the tax: the Ministry of Defence of the Russian Federation, the Ministry of Internal Affairs of the Russian Federation, the Federal Security Service of the Russian Federation, the Federal Governmental Communications and Information Agency under the President of the Russian Federation, the Federal Guard Service of the Russian Federation, the Foreign Intelligence Service of the Russian Federation, the Federal Border Guard Service of the Russian Federation, the Federal Special Construction Service of the Russian Federation and other federal executive bodies in which military servicemen undergo service, the Federal Tax Police Service of the Russian Federation, the Ministry of Justice of the Russian Federation, the State Courier Service of the Russian Federation, the State Customs Committee of the Russian Federation, the military courts, the Judicial Department of the Supreme Court of the Russian Federation, the Military College of the Supreme Court of the Russian Federation in as much as it concerns the amounts of allowances of money, foodstuffs and clothing and other disbursements received by military servicemen, the privates and officers of the bodies of internal affairs, the personnel of tax police bodies, criminal execution system and customs system of the Russian Federation holding special ranks, in connection with the exercise of the duties of military service and other services qualifying as such under Russian law.

3. The federal courts and prosecutor's office bodies shall not include the following in tax base for the purposes of calculating the tax payable to the federal budget: the amounts of money allowance payable to the judges, prosecutors and investigators holding special ranks.

4. The Federal Tax Police Service of the Russian Federation, the State Customs Committee of the Russian Federation shall not include the following in tax base for the purposes of calculating the tax payable to the federal budget: the amounts of money allowances and clothing allowances of the personnel of tax police bodies and customs bodies of the Russian Federation switched, effective July 1, 2002, to the federal civil service remuneration for labour terms.