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 n 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 Extreme 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 11, 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.