Article 213. Features of the Determination of the Tax Base on Insurance Contracts and Non-State Pension Insurance Contracts

1. When determining the tax base, incomes received in the form of insurance in the event of corresponding insured accidents under mandatory insurance performed in the manner established by the current legislation, under voluntary long-term (for a period of at least five years) life insurance and in reimbursement of harm to life, health and medical expenses (not taken into account except for payment of sanatorium vouchers) of insurants or insured persons, and also incomes in the form of insurance compensations under voluntary pension insurance contracts concluded with the insurers and (or) incomes in the form of disbursements under voluntary pension insurance contracts concluded with non-state pension funds, if such disbursements are effected in the event of the pension grounds according to the legislation of the Russian Federation.

2. The amounts of insurance compensations received under voluntary life insurance, contracts concluded for the terms of less than five years shall not be taken into account when determining the tax base if the amounts of such insurance compensations do not exceed the amounts contributed by natural persons in the form of the insurance premium payments marked up by the insurers by an amount computed on the basis of the current refinancing rate of the Central Bank of the Russian Federation at the time the insurance contract was made. Otherwise, the difference between said amounts shall be taken into account when determining the tax base and shall be taxable at the source of disbursement at the rate stipulated by Item 2 of Article 224 of the present Code.

3. In case of advance avoidance of an agreement of voluntary long-term life insurance, (advance avoidance of agreements of voluntary pension insurance concluded with the Russian non state pension funds) before the lapse of the five year term of its operation (except for cases of advance avoidance of the insurance contract for reasons beyond the will of the parties) and refund to the natural persons of cash (redemption) amount, which according to the Rules of insurance (legislation of the Russian Federation on non state pension funds) and terms and conditions of the contract are refundable in case of advance avoidance of the insurance contract (pension insurance), and also in case of a change of conditions of the aforesaid agreement in respect of the effective term thereof, the received income minus the amount of installments made by the natural person, shall be taken into account when determining the tax base and shall be taxable at the source of disbursement.

4. Under a voluntary property insurance contract (including insurance of civil liability for property tort of third persons and (or) insurance of civil liability of transport vehicle owners) in the event of the insured accident, the taxable income of the taxpayer shall be determined in cases of:

loss or destruction of insured property (property of third persons) as the difference between the received insurance compensation and the market value of insured property on the date of conclusion of the aforesaid contract (on the date of the insured accident - for a civil liability insurance contract), marked up by the amount of the insurance premium payments paid to insure this property;

damage of insured property (property of third persons) as the difference between the received insurance compensation and expenses required for repairing (restoring) this property (if no repair has been performed), or the cost of repair (rehabilitation) of this property (if repairs have been performed) being marked up by the amount of insurance premium payments paid to insure this property.

The feasibility of expenses required towards repairing (restoring) insured property if no repair (restoration) has been performed shall be confirmed by a document (cost-estimate, statement, certificate) drawn up by an insurer or independent expert (surveyor).

The feasibility of expenses towards effected repair (rehabilitate) insured property shall be confirmed by the following documents:

1) contract (copy of the contract) on the performance of appropriate works (on rendering of services);

2) documents confirming acceptance of executed works (rendered services);

3) payment documents which were made out in due order to confirm the fact of payment for works (services).

In so doing, not to be taken into account as income shall be the amount reimbursed to the insurant or the expenses incurred by the insurers involved in the investigation of circumstances of an insured accident, assessment of the scope of damage, legal costs, and also other expenses according to the current legislation and terms and conditions of the property insurance contract.

5. When determining the tax base, the amounts of insurance (pension) contributions shall be taken into account if these amounts are deposited for natural persons from the funds of organizations or other employers, except for cases:

when employers provide mandatory insurance of workers according to the current legislation, and in case of agreements of voluntary insurance providing disbursements in compensation of harm to life and health of insured natural persons and (or) payment by the insurers of medical expenses of insured natural persons, provided no disbursements are made to the insured natural persons;

when employers conclude contracts of voluntary pension insurance (contracts on voluntary non state pension insurance), provided that the total amount of the insurance (pension) installments will not exceed two thousand roubles annually per one worker.

Article 214. Specifics in the Payment of Tax on the Profits of Natural Persons with Respect to Incomes from Share Participation in an Organisation

The sum of tax on the incomes of natural persons (hereinafter in the present Chapter ' the tax') with respect to the incomes from the share participation in an organisation received in the form of dividends, shall be determined taking into account the following provisions:

1) the sum of the tax with respect to dividends received from the sources outside of the Russian Federation, shall be defined by the tax payer on his own as concerns every amount of received dividends, in accordance with the rate envisaged by Item 4 of Article 224 of this Code. "The taxpayers receiving dividends from sources outside of the Russian Federation shall in this case have the right to reduce the sum of the tax calculated in conformity with the present Chapter, by the sum of the tax calculated and paid at the place of location of the source of the income, only in cases when the source of the income is situated in a foreign state, with which a contract (agreement) is signed on avoiding double taxation.

If the sum of the tax paid up at the place of location of the source of the income exceeds the sum of the tax calculated in conformity with the present Chapter, the resulting difference shall not be subject to return from the budget;

2) if the source of the taxpayer's income received in the form of dividends is a Russian organisation, the said organisation shall be recognised as a tax agent and shall determine the sum of the tax separately for every taxpayer as concerns every payment of the said incomes in accordance with the rate envisaged by Item 4 of Article 224 of this Code, and with the order stipulated by Article 275 of the present Code.

Article 214.1. The Peculiarities of Determining Tax Base, Calculating and Paying the Tax on Incomes under Transactions in Securities and the Transactions in Time Deal Instruments of Which the Base Asset Is Securities

1. When calculation is being done of the tax base of incomes under the in securities and the transactions in time deal instruments of which the base asset is securities account shall be taken of incomes received under the transactions:

of the purchase and sale of securities traded in the organised securities market;

of the purchase and sale of securities not traded in the organised securities market;

in time deal instruments of which the base asset is securities;

in securities and time deal instruments of which the base asset is securities, such transactions being accomplished by the trustee for the benefit of the founder of a trust (beneficiary) being a natural person.

2. For each of the transactions specified in Item 1 of the present article tax base shall be determined separately with due regard to the provisions of the present article.

For the purposes of the present article the "time deal instruments of which the base asset is securities" means futures and option market deals.

3. Income (loss) under securities purchase/sale transactions shall be determined as the sum of incomes under the aggregate deals in securities of a certain category accomplished in the tax period, less the sum of losses.

Income (loss) under a securities purchase/sale deal shall be determined as a difference between the sums received from the sale of the securities and the expenses towards acquiring, selling and holding in custody the securities actually incurred by the taxpayer (including the expenses reimbursed to the professional participant in the securities market) and documented. These expenses are as follows:

amounts payable to the seller under a contract;

payment for the services provided by a custodian;

commission payable to professional participants in the securities market;

market fee (commission);

payment for the services of a registrar;

other expenses directly relating to the purchase, sale and custody of securities payable for the services provided by professional participants in the securities market within the framework of their professional activity.

Income under a deal of purchase/sale of securities traded in the organised securities market shall be reduced by the amount of interest paid for the use of the amounts of money raised to accomplish the securities purchase/sale deal within the limits calculated proceeding from the effective refinancing rate of the Central Bank of the Russian Federation.

Loss under a deal in securities traded in the organised securities market shall be determined with due regard to the security market price variation limits.

For the purposes of the present chapter the "securities traded in the organised securities market" means securities cleared for trading by trade organisers holding a license issued by the federal body responsible for regulating the securities market.

Where the taxpayer's expenses towards the acquisition, sale and custody of securities cannot be referred to as "expenses towards the acquisition, sale and custody" of specific securities the said expenses shall be distributed pro rata to the value appraisal of the securities to which the said incomes are attributable. The value appraisal of the securities shall be effected as of the date when the expenses were incurred.

If the taxpayer's expenses are not validated by a document the taxpayer shall be entitled to a tax property deduction as stipulated in Paragraph 1 Subitem 1 Item 1 Article 220 of the present Code.

A tax property deduction or a deduction in the amount of actually incurred and documented expenses shall be granted to a taxpayer when the tax is being calculated and paid to the budget at the source of disbursement of an income (a broker, trustee or another person accomplishing transactions under an agency agreement or another agreement of similar nature for the taxpayer's benefit) or upon the expiration of the tax period when the tax return is filed with a tax body.

If the tax is calculated and paid by the source of disbursement of an income (a broker, trustee or another person accomplishing transactions under an agency agreement or another agreement of similar nature for the taxpayer's benefit) in the tax period a tax property deduction shall be granted by the source of disbursement of the income as including a possibility of a subsequent review upon the expiration of the tax period when the tax return is filed with a tax body.

If there are several income disbursement sources a tax property deduction shall be granted only at one of the income disbursement sources chosen at the taxpayer's discretion.

4. The tax base relating to securities purchase/sale transactions shall be determined as the income received according to the securities transactions results of the tax period. Income (loss) under securities purchase/sale transactions shall be determined in compliance with Item 3 of the present article.

Loss under transactions in securities traded in the organised securities market incurred according to the results of the said transactions accomplished in the tax period shall reduce the tax base of the transactions of purchase/sale of securities of a certain category.

Income under the transactions of purchase/sale of securities which are not traded in the organised securities market and which, as of the time of purchase, met the criteria applicable to the securities traded in the organised securities market may be reduced by the sum of loss incurred in the tax period under the transactions of purchase/sale of securities traded in the organised securities market.

5. The tax base relating to transactions in time deal instruments (except the transactions specified in Item 6 of the present article) shall be determined as a difference between the positive and negative results obtained from a re-valuation of liabilities and claims under the deals made and from the discharge of time deal instruments with the account taken of payment for the services provided by market mediators and the market in terms of opening positions and keeping the natural person's account. The tax base relating to transactions in time deal instruments shall be increased by the sum of bonuses received under option deals and reduced by the sum of bonuses paid under the said deals.

6. As it concerns transactions in instruments of the time deals made for the purposes of minimising the risk of security price variation, the incomes from the transactions in item deal instruments (including the bonuses received under option deals) shall increase and the losses shall reduce the tax base relating to transactions in the base asset.

The procedure for classifying deals in time deal instruments as "deals made for the purposes of minimising the risk of base asset price variation" shall be set forth by the federal executive bodies empowered to do so by the Government of the Russian Federation.

7. The tax base relating to the transactions in securities and time deal instruments accomplished by a trustee shall be calculated in compliance with the procedure established by Items 4 - 6 of the present article with due regard to the provisions of the present item.

The taxpayer's incomes shall also include the amounts paid by the founder of a trust (beneficiary) to the trustee in the form of a fee and compensation for the expenses incurred by him under accomplished transactions in securities and transactions in time deal instruments.

When calculation is effected of the tax base relating to incomes under the transactions in securities and transactions in time deal instruments accomplished by a trustee for the benefit of a founder (beneficiary) of the trust the said income shall be determined for a beneficiary not being a founder of the trust with due regard to the provisions of the trust agreement.

When, in the case of trust management, deals are made in securities of various categories and also if other types of income occur in the course of trust management (including, in particular, incomes under transactions in time deal instruments, incomes in the form of dividends, interest) the tax base shall be determined separately for each category of securities and for each type of income. In such a case the incomes that cannot be directly referred to income reduction under deals in the securities of a certain category or to the reduction in a certain type of income shall be distributed pro rata to the share of each type of income (income received under transactions in the securities of a relevant category).

The loss incurred under transactions in securities accomplished by a trustee for the benefit of the founder (beneficiary) of the trust in the tax period shall reduce the incomes under the said transactions.

The loss incurred under transactions in securities and transactions in time deal instruments accomplished by a trustee for the benefit of the founder (beneficiary) of the trust shall reduce the incomes received under transactions in the securities of a relevant category and transactions in time deal instruments and the incomes received under the said transactions shall increase the incomes (reduce the losses) under transactions in the securities of a relevant category and transactions in time deal instruments.

The loss incurred under transactions in securities and transactions in time deal instruments accomplished by a trustee for the benefit of the founder (beneficiary) of the trust accomplished in the tax period shall reduce the tax base relating to transactions in the securities of a relevant category and transactions in time deal instruments respectively.

8. The tax base relating to the transactions of purchase/sale of securities and transactions in time deal instruments shall be calculated upon the expiration of the tax period. Tax calculation and payment shall be effected by the tax agent upon the expiration of the tax period or when the agent disburses amounts of money for the benefit of the taxpayer before the expiration of next tax period.

When amounts of money are disbursed by the tax agent before the expiration of next tax period the tax shall be paid on the share of income determined in compliance with the present article as corresponding to the actual amount of money disbursed. The share of income shall be determined as the sum total of income times the ratio of disbursement amount to securities value appraisal determined as of the date of the disbursement of the monies in respect of which the tax agent acts as a broker. When amounts of money are disbursed for the benefit of the taxpayer more than once in the tax period the tax amount shall be accrued and be cumulative, with the tax amounts paid earlier being taken into account.

The value appraisal of securities shall be effected proceeding from the actual expenses incurred to acquire them if these expenses are documented.

As it concerns the incomes under transactions in securities and transactions in time deal instruments accomplished by a trustee for the benefit of the founder (beneficiary) of the trust, the trustee shall be deemed a tax agent, such a trustee determining the tax base under the said transactions with due regard to the provisions of the present article.

The tax base relating to transactions in securities accomplished by a trustee for the benefit of the founder (beneficiary) of the trust shall be determined as of the date of end of the tax period or as of the date of disbursement of amounts of money (transfer of securities) before the expiration of next tax period. The tax shall be payable within one month after the date of end of the tax period or the date of disbursement of amounts of money (transfer of securities).

When disbursements are effected in monetary form or in kind out of the resources held on trust, before the expiration of the effective term of the trust agreement or before the expiration of the tax period the tax shall be paid on the share of income determined in compliance with Item 7 of the present article corresponding to the actual amount of money disbursed for the benefit of the founder (beneficiary) of the trust. In such a case the share of income shall be determined as the sum total of income times the ratio of the amount of disbursement to the appraisal of the securities (monies) held on trust determined as of the date of disbursement of amounts of money. When disbursement is effected in monetary form or in kind out of the resources held on trust, more than once in the tax period the said calculation shall be effected as accrual and be cumulative, with the account being taken of the tax amounts paid earlier.

For the purposes of the present item the "disbursement of amounts of money" means disbursement in cash, the remittance of amounts of money to a person's bank account or to a third person's bank account on the request of a natural person.

If its is impossible to withhold from a taxpayer a tax amount calculated by the source of disbursement the tax agent (broker, trustee or another person accomplishing transactions under an agency, commission agreement or another agreement for the taxpayer's benefit) shall notify the tax body at the place of its registration within one month after the occurrence of this circumstance about the impossibility of such a withholding and of the amount of money owed by the taxpayer. In this case the tax shall be paid in compliance with Article 228 of the present Code.