Article 215. Features of the Determination of Incomes of Specific Categories of Foreign Citizens

1. The following incomes shall not be taxable:

1) of heads and also staff of missions of a foreign state having a diplomatic or consular rank, members of their families staying with them if they are not citizens of the Russian Federation, except for the incomes from sources in the Russian Federation which are not connected to the diplomatic or consular service of these natural persons;

2) of the administrative-clerical staff of missions of a foreign state and members of their families staying with them, if they are not citizens of the Russian Federation or do not live in Russian Federation permanently, except for the incomes from sources in the Russian Federation which are not connected to the said individuals' employment with these missions;

3) of supporting personnel of the missions of a foreign state who are not citizens of the Russian Federation or do not live in the Russian Federation permanently which they receive when in their line of duty in the mission of a foreign state;

4) employees of international organizations - according to the charters of these organizations.

2. Provisions of the present Article shall apply in cases when legislation of a corresponding foreign state had established a similar order concerning persons listed in Subitems 1-3 of Item 1 of the present Article, or if such norm is stipulated by an international treaty (agreement) of the Russian Federation. The list of foreign states and international organizations concerning whose citizens (employees) the standards of the present Article shall be applied is defined by a federal body of the executive power regulating relations of the Russian Federation with foreign states (international organizations) together with the Ministry of Taxation of the Russian Federation.

Article 216. The Tax Period

The tax period shall be defined as a calendar year.

Article 217. Non-Taxable Incomes (Exempt from Taxation)

The following types of personal incomes shall be exempt from taxation (not subject to taxation):

1) state allowances, excluding temporary disability allowance, (including the allowance for care of a sick child) as well as other disbursements and compensations paid according to the effective legislation. Here, tax exempt allowances include unemployment benefit, and maternity and birth of a child allowance;

2) the state pensions awarded in the order, established by the current legislation;

3) all types of compensatory disbursements established by the legislation of the Russian Federation, legislative acts of constituent entities of the Russian Federation, decisions of representative bodies of local self-government (within the limits of standards established according to the legislation of the Russian Federation) and involving:

reimbursement of harm caused by mutilation or other damage to health;

free granting of housing and utilities, fuels or a relevant pecuniary reimbursement;

payment of cost and/or issue of authorized allowance in kind and also the disbursement of cash instead of such an allowance;

payment of the cost of meals, sports gear, equipment, sports and dress uniform received by the sportsmen and staff of physical culture and sports organizations for training process and participation in sport competitions;

dismissal of workers, including compensations for unused holiday;

loss of life of military servicemen or government officials in the line of their official duties;

reimbursement of other expenses, including the expenses involved in the improvement of professional skills of workers;

performance by the taxpayer of his job duties (including relocation to work to another locality and reimbursement of travel and living expenses).

In case the employer pays the expenses of business trips of workers both in the country and abroad, the daily allowance exempt from taxation shall be within the limits of standards established according to the legislation of the Russian Federation, and also the actually effected and documented target expenses in the travel up to destination and back, charges for airport services, commission charges, expenses in travel to the airport or terminal in the places of departure, destination or changes, on conveyance, expenses in hiring housing, communication services expenses, charges for the receipt and registration of a service foreign passport, charges for granting visas, and also expenses in exchange of currency cash or cheques in a bank into foreign currency in cash. If no documents are presented to confirm the payment of expenses for hiring of housing, the amounts of such payment can be exempted from taxation within the limits of standards established by the legislation of the Russian Federation. A similar order of taxation shall apply to disbursements effected to persons found in command or administrative subordination to an organization, and also members of a board of directors or any similar body of the company coming to participate in meetings of the board of directors, the management board or another similar body of such a company;

4) compensation to donors for donated blood, mother's milk or other donor's assistance;

5) alimonies received by taxpayers;

6) amounts received by taxpayers in the form of grants (of gratuitous help), science, granted for support, and education, culture and arts in the Russian Federation by international or foreign organizations under the list of such organizations approved by the Government of the Russian Federation;

7) amounts received by taxpayers in the form of international, foreign or Russian prizes for achievements in the field of science and engineering, education, culture, literature and arts under the list of prizes approved by the Government of the Russian Federation;

8) the amount of lump sum material assistance rendered:

to taxpayers in connection with natural disaster or other emergencies in order to compensate for material loss caused to them or harm to their health on the basis of decisions of bodies of legislative (representative) and/or executive authority, representative bodies of local self-government, or foreign states or special funds created by public authorities or foreign states, and also created according to international treaties, one of which parties is the Russian Federation, governmental and non-governmental interstate organizations;

by the employers to members of the family of a deceased employee or to an employee in connection with the death of a member (members) of his/her family;

to the taxpayers in the form of humanitarian aid (assistance), and also in the form of charitable help (in cash and in kind) rendered by Russian and foreign charitable organizations (funds, associations) registered in due order, included in the lists approved by the Government of the Russian Federation;

to low income and taxpayers and socially vulnerable categories of citizens in the form of amounts of the target oriented social assistance (in cash and in kind) rendered to the charge of funds of the federal budget, budgets of the constituent entities of the Russian Federation, local budgets and extra-budgetary funds according to programs approved annually by the appropriate public authorities;

to taxpayers who suffered from terrorist acts on the territory of the Russian Federation, irrespective of source of disbursement;

9) amounts of full or partial compensation of cost of travel agreements, except for tourist ones paid by employers to workers and (or) members of their families, and invalids who are not working in the given organization to sanatoriums and health improvement establishments located on the territory of the Russian Federation, and also the amounts of full or partial compensation of cost of travel agreements for children who have not reached 16 years of age to sanatoriums and health improvement establishments located on the territory of the Russian Federation which are paid:

to the charge of funds of employers who have stayed in their order after payment of the tax to profit of organizations;

to the charge of funds of the Social Insurance Fund of the Russian Federation;

10) amounts paid by employers from funds they have retained after payment of the organization's profit tax for treatment and health services rendered to workers, their spouses, their parents and their children, provided the medical establishments hold the appropriate licenses, and documents are produced to confirm actual expenses in treatment and health services.

Aforesaid incomes shall be exempted from taxation if the employers make non-cash payments to medical establishments for the treatment and health services of the taxpayers, and also if the cash for these purposes is issued directly to the taxpayer (members of his family, parents) or funds intended for such purposes are entered into accounts of the taxpayers held with bank institutions;

11) grants to pupils, students, post-graduate students, hospital physicians, associates or persons working for a doctor's degree of higher vocational training or post-college vocational training, of research establishments, of students of learning establishments of basic professional and medium vocational training, students of theological educational establishments which are paid to said persons by these establishments, grants established by the President of the Russian Federation, bodies of legislative (representative) or executive power of the Russian Federation, bodies of constituent entities of the Russian Federation, charitable funds, grants paid at the expense of budget funds to taxpayers who undergo training under a voucher issued by bodies of the employment service;

12) amounts of wages and other amounts in foreign currency received by taxpayers from federally funded state institutions or organizations that sent them to work abroad - within the limits of standards established by the current legislation on wages of employees;

13) incomes of taxpayers received from the sale of cattle, rabbits, coypu rats, birds, wild animals and birds (both live and products of their slaughter, both raw or processed) production of cattle-breeding, plant growing, flower-growing and bee-keeping, both in kind and processed which were raised on personal part-time farms, situated on the territory the Russian Federation.

Aforesaid incomes are released from taxation provided the taxpayer submits a document issued by an appropriate body of local self-government, gardening board, gardening or vegetable gardening partnerships confirming that the sold products have been produced by the taxpayer on the land lot owned by him or members of his family used for personal part-time farming, country cottage construction, gardening and vegetable gardening;

14) incomes of members of a country (farmer) household received in such a household from the production and sale of agricultural products and also from the production of agricultural products, and their processing and sale - within five years after the registration year of the household.

The present norm shall be applicable to the incomes of such members of a peasant (farmer's) farm to whom it has not been applied.

15) incomes of taxpayers received from the collection and selling of medicinal plants, wild berries, nuts and other fruits, mushrooms, or other wild plants to organizations and (or) individual entrepreneurs that have a permit (license) for large scale procurement (buying) of wild plants, mushrooms, technical and medicinal raw material of plant-related origin, except for the incomes received by individual entrepreneurs from resale of products listed in the present Subitem;

16) incomes (except for wages of hired workers) received by members registered in accordance with the established procedure patrimonial, family communities of small ethnic groups of the North from the sale of products received as a result of pursuing their traditional types of craft;

17) incomes of non-professional hunters received from selling to hunters' societies, organizations of consumers' cooperation or state unitary enterprises of furs they have procured, fur or hind raw materials or meat of wild animals if such animals are procured under licenses issued in the order established by the current legislation;

18) incomes in cash and in kind received from natural persons by way of succession or donation, except for compensation paid to heirs (assignees) of authors of works of science, literature, art, and also discoveries, inventions and industrial models;

19) incomes received from joint-stock companies or other organizations by shareholders of these joint-stock companies or participants of other organizations as a result of revaluation of fixed assets (funds) in the form of additional shares they have received, or other property shares distributed between shareholders or participants in an organization in proportion to their share and types of stocks, or in the form of differences between the new and initial face value of shares or their property share in the charter capital;

20) prizes in cash and (or) kind received by sportsmen for prize-winning places for the following sport competitions: Olympic games, championships and the world- and European cups of the official organizers or on the basis of decisions of public authorities and bodies of local self-government to the charge of funds of appropriate budgets;

championships, competitions and cups of the Russian Federation from the official organizers;

21) amounts paid to organizations and (or) natural persons orphan children aged up to 24 for education at educational establishments that have the appropriate licenses or for their training/education to the said institutions;

22) amounts of payment for invalids by organizations or individual entrepreneurs of means of prevention of physical disability and rehabilitation of invalids, and also payment of acquiring and keeping of guide dogs of disabled persons;

23) compensation paid for handing treasures over to state ownership;

24) incomes received by individual entrepreneurs for the performance of those types of activity under which they are the payers of the single tax on imputed income;

25) amounts of interest under state treasury obligations, bonds and other state securities of the former USSR, the Russian Federation and constituent entities of the Russian Federation, and also under bonds and securities issued by decision of representative bodies of local government;

26) incomes received by children - orphans and children, being members of families whose incomes per one member does not exceed the cost of living, from duly registered charitable funds and religious organizations;

27) incomes in the form of interest received by taxpayers on deposits in banks situated on the territory of the Russian Federation if:

the interest on rouble deposits are paid within the limits of amounts calculated on the basis of three quarters of the current refinancing rate of the Central Bank of the Russian Federation during the period for which said interest is charged;

the established rate does not exceed 9 per cent per annum under foreign currency deposits;

28) incomes not exceeding 2,000 roubles received on any of the following grounds over a tax period:

cost of gifts received by taxpayers from organizations or individual businessmen and not taxable on succession or gift under the current legislation;

cost of prizes in cash and in kind received by taxpayers in competitions and contests held by decisions of the Government of the Russian Federation, legislative (representative) public authorities or representative bodies of a local self-government;

amounts of material assistance rendered by employers to their workers and also former workers who have retired due to disability or age-related pension;

reimbursement (payment) by employers to their workers, their spouses, parents and children, former workers (age retirees) and also invalids of the cost of drugs bought by them (for them) prescribed to them by a treating doctor.

Exemption from taxation shall be granted upon the submission of documents confirming the actual expenses incurred towards the acquisition of these medicines;

cost of any prizes or winnings received through competitions, games and other activities for the purposes of advertising goods (works, services);

29) the incomes of soldiers, sailors, sergeants and sergeant- majors drafted undergo military service and also persons drafted to undergo periodical training in the form of an allowance of money, per diem and other amounts of money received at the place of service or periodical training;

30) amounts paid to natural persons by election commissions, and also from the resources of election funds of candidates and registered candidates for the position of the President of the Russian Federation, candidates, registered candidate deputies of the State Duma; candidates and registered candidate deputies of legislative (representative) public powers of the constituent entity of the Russian Federation; candidates and registered candidates for the position of the chief executive of a constituent entity of the Russian Federation; candidates and registered candidates of an elected body of the local government, candidates, registered candidates for a position of the head of a municipal entity; candidates and registered candidates for a position in another federal state body, a state body of the constituent entity of the Russian Federation stipulated by the Constitution of the Russian Federation, by the Constitution or charter of the constituent entity of the Russian Federation and elected directly by citizens; candidates and registered candidates for another position in a body of local self-government stipulated by the charter of the municipal entity and filled in through direct ballot, of election funds of electoral associations and election blocks for such person's work directly associated with the conduct of election campaigns;

31) Disbursements made by trade-union committees (including financial assistance) to members of trade unions except rewards and other disbursements for the performance of labour duties, at the expense of the tax, and also disbursements effected by youth and children's organizations to their members to the charge of membership fees to cover expenses involved in holding cultural, mass entertainment- , physical culture and sport activities.

32) prises on Russia state loan bonds and amounts received at the redemption of these bonds;