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, excise and sales tax).

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.