Article 225. The Order of Calculation of Tax

1. When determining the tax base according to Item 3 of Article 210 of the present Code, the amount of tax shall be calculated as a percentage share of the tax base corresponding to the tax rate established by Item 1 of Article 224 of the present Code.

When determining the tax base according to Item 4 of Article 210 of the present Code, the amount of tax shall be calculated as a percentage share of the tax base according to the tax rate.

2. The total amount of tax represents an amount received as a result of addition of amounts of tax calculated according to Item 1 of the present Article.

3. The total amount of the tax shall be calculated by results of a tax period as regards all incomes of the taxpayer whose date of receipt falls within the respective tax period.

4. The tax shall be calculated in whole roubles. An amount of tax less than 50 copecks shall be rejected, while 50 copecks or more shall be rounded up to a whole rouble.

Article 226. Features of Calculation of Tax by Tax Agents. The Order and Terms of Payment of Tax by Tax Agents

1. Russian organizations, individual businessmen and permanent representations of foreign organizations in the Russian Federation from which or as a result of the relations with which the taxpayer has received incomes indicated in Item 2 of the present Article, are obliged to calculate, to withhold from the taxpayer and to pay the tax computed according to Article 224 of the present Code with allowance for features stipulated by the present Article. The tax on lawyers' incomes shall be calculated, withheld and paid by the Bars (institutions thereof).

Russian organizations specified in the present Item, individual businessmen and permanent representations of foreign organizations, the Bars and the institutions thereof, in the Russian Federation are referred to in the present Chapter as tax agents.

2. Calculation of the amounts and payment of tax according to the present Article are made for all incomes of the taxpayer, whose source is the tax agent, except for the incomes concerning which the calculation and payment of the tax are made according to Articles 214.1, 217 and 228 of the present Code with offset of the previously withheld amounts of tax.

3. Tax agents shall calculate amounts of tax in progressive total from the beginning of the tax period by results of each month as regards all incomes covered by the tax rate established by Item 1 of Article 224 of the present Code accrued to the taxpayer over the period in question, with the account taken of the tax amount withheld in the preceding months of the current tax period.

Amount of the tax with reference to incomes concerning which other tax rates are applied shall be calculated by the tax agent separately for each amount of said income accrued to the taxpayer.

The tax shall be calculated without account of incomes received by the taxpayer from other tax agents and amounts withheld by other tax agents.

4. Tax agents are obliged to withhold the computed amount of tax directly from incomes of the taxpayer upon their actual disbursement.

The deduction at the taxpayer of the charged amount of tax shall be made by the tax agent to the charge of any funds paid by the tax agent to the taxpayer, upon the actual disbursement of aforesaid funds to the taxpayer or by his instruction to third persons. In so doing, the withheld tax can not exceed 50 per cent of the amount of disbursement.

5. If the computed amount of tax can not be withheld at the taxpayer within one month from the time such circumstances occurred, the tax agent is obliged to inform the tax authorities in written form at the place of his registration on his inability to withhold the tax and the arrears of the taxpayer. As the inability to withhold tax, in particular, shall be recognized cases when it is obviously known that the period during which the sum of accrued tax can be withheld, will exceed 12 months.

6. The tax agents are obliged to transfer the amounts of calculated and withheld tax no later the day of actual receipt in the bank of effective cash to disburse the income, and also of the income transfer day from accounts of the tax agents with the bank to accounts of the taxpayer or by his instruction to bank accounts of third persons.

In other cases, tax agents shall transfer the calculated and withheld tax no later than the day following actual receipt by the taxpayer of the income, - for incomes disbursed in cash and also the day following the actual deduction of the calculated amount of tax - for incomes received by the taxpayer in kind or in a form of financial assistance.

7. The aggregate sum of tax calculated and withheld by a tax agent from the taxpayer for which he is recognized as the source of income shall be paid at the place where the tax agent is registered with a tax body.

Tax agents, Russian organizations, specified in Item 1 of the present article, that have detached units are obliged to transfer amounts of calculated and withheld tax both at the place of their location, and at the place of each of its detached units.

The amount of the tax payable to the budget at the location of detached units shall be defined on the basis of amount of taxable income, charged and paid to workers of such detached units.

8. Withheld by a tax agent from incomes of natural persons concerning which he is recognized as the source of income, the aggregate amount of tax exceeding 100 roubles, shall be transferred to the budget in the order established by the present Article. If the aggregate sum of the withheld tax payable to the budget constitutes less than 100 roubles, it shall be added to the amount of tax subject to transfer to budget in the next month, but no later than December of the current year.

9. It is not allowed to pay tax at the expense of funds of tax agents. When concluding contracts and other deals, it is prohibited to include into such any tax clauses according to which income paying tax agents shall undertake to bear expenses connected with the payment of tax for natural persons.

Article 227. Features of Calculation of Amounts of Tax by Individual Entrepreneurs and Other Persons Engaged in Private Practice. The Order and Terms of Payment of Tax, and the Order and Terms of Payment of Advance Payments by Said Persons

1. The calculation and payment of tax according to the present Article shall be made by the following taxpayers:

1) natural persons registered in the order established by the current legislation and engaged in business activity without the status of a legal person - on amounts of incomes received from such activities;

2) private notaries and other persons engaged in the order established by the current legislation in private practice - on amounts of incomes received from such activity.

2. Taxpayers named in Item 1 of the present Article shall independently calculate the tax payable to the appropriate budget in the order established by Article 225 of the present Code.

3. The total amount of tax payable to the appropriate budget shall be calculated by the taxpayer with allowance for the tax withheld by tax agents upon the disbursement to the taxpayer of the income, and also amounts of advance payments under the tax actually paid to the appropriate budget.

4. Losses of past years incurred by the natural person shall not reduce the tax base.

5. The taxpayers named in Item 1 of the present Article are obliged to present to the tax authorities at the place of their registration the appropriate tax declaration by times established by Article 229 of the present Code.

6. The total sum of tax payable to the appropriate budget calculated according to the tax declaration with allowance for provisions of the present Article shall be paid at the place of registration of the taxpayer no later than July 15 of the year following the lapsed tax period.

7. If during the year the taxpayers named in Item 1 of the present Article will obtain any incomes received from the accomplishment of business activity or from pursuit of a private practice, the taxpayers are obliged to present the tax declaration stating the amount of the anticipated income from said activity in the current tax period to the tax authorities within five days upon the completion of the month from the date of appearance of such incomes. In so doing, the sum of the anticipated income shall be determined by the taxpayer.

8. The calculation of the sum of advance payments shall be made by the tax authority. Amounts of advance payments on the current tax period shall be made by the tax authorities on the basis of the amount of anticipated income stated in the tax declaration or the amount of the actually received income from activity types stated in Item 1 of the present Article for the previous tax period with allowance for tax deductions stipulated by Articles 218 and 221 of the present Code.

9. Advance payments are paid by the taxpayer on the basis of the tax notices:

1) for January - June - not later than July 15 of the current year in the amount of half of the annual amount of advance payments;

2) for July - September - no later than October 15 of the current year in the amount of one quarter of the annual amount of advance payments;

3) for October - December - no later than January 15 of the next year in the amount of one quarter of the annual amount of advance payments.

10. In case of a significant (by more than 50 per cent) increase or reduction of income over a tax period, the taxpayer is obliged to present a new tax declaration which is to give details on the amount of the anticipated income from performance of activity indicated in Item 1 of the present Article for the current year. In this case, the tax authorities shall recalculate the amounts of advance payments for the current year as regards the outstanding deadlines of payment.

The recalculation of the amounts of advance payments is made by the tax authorities not later than within five days from receipt of the new tax declaration.

Article 228. Features of Calculation of Tax Concerning Certain Types of Incomes. The Order of Payment of Tax

1. The calculation and payment of tax according to the present Article shall be made by the following categories of taxpayers:

1) natural persons - on the basis of amounts of compensations received from natural persons who are not tax agents under concluded civil contacts, including the incomes under employment contracts or rent contracts of any property;

2) natural persons - proceeding from the amounts received from the sale of property belonging thereto on the right of ownwership;

3) natural persons - tax residents of the Russian Federation who receive incomes from sources located outside the Russian Federation - on the basis of amounts of such incomes;

4) natural persons receiving other incomes, during whose receipt the tax agents have withheld no tax - on the basis of amounts of such incomes.

5) the natural persons receiving prises disbursed by the organisers of lotteries, totalizator and other risk-based gambling games (in particular, those involving the use of gambling machines), proceeding from the amounts of such prises.

2. The taxpayers specified in Item 1 of the present Article shall independently calculate the amounts of tax payable to the appropriate budget in the order established by Article 225 of the present Code.

The total amount of tax payable to the appropriate budget shall be calculated by the taxpayer with allowance for amounts of the tax withheld by tax agents upon disbursement of income to the taxpayer. In so doing, losses of the past years sustained by the natural person shall not reduce the tax base.

3. The taxpayers listed in Item 1 of the present Article, are obliged to present the appropriate tax declaration to the tax authorities at the place of their registration.

4. The total amount of tax payable to the appropriate budget calculated on the basis of the tax declaration with allowance for provisions of the present Article shall be paid at the place of residence of the taxpayer no later than July 15 of the year following the expired tax period.

5. The taxpayers who received incomes, in the course of which disbursement the tax agents did not withhold any amount of tax, shall pay the tax in two equal installments: the first - no later than 30 days from the date of delivery by the tax authorities of the tax notice on the payment of tax, the second - not later than 30 days after the first term of payment.

Article 229. The Tax Declaration

1. A tax declaration shall be submitted by the taxpayers named in Articles 227 and 228 of the present Code.

The tax declaration shall be submitted no later than April 30 of the year following an expired tax period.

2. Persons who are not obliged to submit a tax declaration shall have the right to submit such a declaration to the tax authorities at their place of residence.

3. When the activities specified in Article 227 of the present Code and/or the termination of the disbursements specified in Article 228 of the present Code cease to exist, up to the end of the tax period within five days from the date of termination of such activities or such disbursements, taxpayers are obliged to present a declaration on the actually received incomes in the current tax period.

If during a calendar year a foreign natural person stops an activity the incomes from which are subject to taxation according to Articles 227 and 228 of the present Code and leaves the territory of the Russian Federation, the tax declaration on incomes actually received over the period of his stay within the current tax period on the territory of the Russian Federation, should be presented by him no later than one month before his departure from the territory of the Russian Federation.

The tax which is charged in addition to the tax declarations the order of which submission is defined by the present Item shall be paid no later than 15 days from the time of submission of such declaration.

4. In the tax declarations, the natural persons shall state all the incomes they have received over the tax period, sources of their disbursement, tax deductions, the amount of tax withheld by tax agents, and the amount of advance payments actually paid during a tax period, tax amounts payable (additionally payable) or refundable according to the results of the tax period".

Article 230. Enforcement of Provisions of the Present Chapter

1. The tax agents shall keep account of incomes natural persons received from them over a tax period on the form established by the Ministry of Taxation of the Russian Federation.

2. The tax agents shall submit to tax authorities at the place of their registration information about incomes of the natural persons over this tax period and amounts of taxes charged and withheld over this tax period, annually, no later than April 1 of the year following a lapsed tax period on the form approved by the Ministry of Taxation of the Russian Federation.

Said information shall be submitted on magnetic media or via telecommunication facilities in the manner defined by the Ministry of Taxation of the Russian Federation.

Tax authorities shall forward such information to tax authorities at the place of residence of natural persons.

In so doing, no information shall be reported on incomes paid to individual entrepreneurs for goods bought from them, products or performed works (services provided) if such individual entrepreneurs have presented to the tax agent documents confirming their state registration as entrepreneurs without the status of legal person and registration with the tax bodies. If the number of natural persons who have received incomes over a tax period is up to 10 persons, the tax agents can submit such information on paper.

In exceptional cases with allowance for special features of activity or features of the location of organizations, tax authorities can grant separate organizations the right to report incomes of natural persons on paper.

3. Tax agents shall issue to natural persons upon their request information on incomes received by the natural persons and withheld amounts of tax on the form approved by the Ministry of Taxation of the Russian Federation.