Article 291. Specifics in Defining Banks' Outlays

1. To banks' outlays, in addition to the outlays envisaged by Articles 254-269 of the present Code, shall also be referred those made in the performance of banking activity which are envisaged in this Article. The outlays envisaged in Articles 254-269 of the present Code shall be defined taking into account the specifics described by the present Article.

2. For the purposes of this Chapter, to the banks' outlays shall be referred the outlays made when carrying out banking activity, in particular the following kinds:

1) interest on:

- contracts on the banks' contribution (deposit) and on other attracted monetary funds of natural persons and legal entities (including of correspondent banks), and likewise foreign ones, including for the use of the monetary funds kept on the banks' accounts;

- own debt liabilities (on bonds, deposits and savings certificates, promissory notes, loans or other liabilities);

- inter-bank credits, including overdrafts;

- the acquired refunding credits, including those acquired on an auction basis, in the order established by the Central Bank of the Russian Federation;

- loans and contributions (deposits) in the form of noble metals.

- other liabilities of banks with regard to clients, and likewise in respect of the assets deposited by client for settlements relating to letters of credit.

Interest calculated in conformity with this Item on inter-bank credits (deposits) with a term of up to seven days (inclusive) shall be recorded when defining the tax base, not taking into account the provisions of Item 1 of Article 269 of the present Code, proceeding from the actual time term of operation of the contracts;

2) the sums of deductions into the reserve against probable losses on loans subject to reservation in the order established by Article 292 of the present Code;

3) commission fees for the services on correspondent relations, including outlays on the cash-settlement servicing of the clients, on opening for them accounts in other banks, on the payment to other banks (including foreign ones) for the cash-settlement servicing of these accounts, on the settlement services of the Central Bank of the Russian Federation, on the encashment of the monetary funds, securities, payment documents, and other similar expenditures;

4) the outlays (losses) on (from) operations in foreign currency, made (incurred) in cash and in non-cash forms, including commission fees (awards) in transactions involved in the purchase or sale of foreign currency, including at the expense and on the orders of the client, from transactions in currency values, and the expenditures on management and on protection against currency risks.

To determine the outlays of banks on transactions of sale (purchase) of foreign currency in a reporting (tax) period there shall be accepted the negative difference between the incomes determined in compliance with Item 2 of Article 250 of this Code and the outlays determined in compliance with Subitem 6 of Item 1 of Article 256 of this Code;

5) the losses on transactions involved in the purchase and sale of noble metals and precious stones in the form of the difference between the price of sale and the cost of discounting;

6) the bank's outlays on the storage, transportation and control over the correspondence of noble metals in bars and coins to quality standards, outlays on refining noble metals, and the other outlays involved in the performance of transactions with the bars of noble metals and with coins containing noble metals;

7) outlays on the transfer of pensions and allowances, as well as the outlays on the transfer of the monetary funds without opening accounts to natural persons;

8) outlays on the manufacture and introduction of the payment and settlement means (plastic cards, travellers' cheques and other payment and settlement means);

9) sums paid for the encashment of banknotes, coins, cheques and other payment and settlement documents, as well as outlays on packing (including making complete sets of cash), shipment and (or) the delivery of valuables belonging to the credit institution or to its clients;

10) outlays on the repairs and (or) restoration of collectors' bags, sacks and other equipment connected with the encashment of money, with the transportation and the storage of valuables, as well as with the acquisition of new and replacement of old bags and sacks which have become unfit for use;

11) outlays involved in the payment of the fee for state registration of the mortgage and in the introduction of amendments and addenda to the registration entry on the mortgage, as well as in the notary's certification of the contract of mortgage;

12) outlays on renting motor transport facilities for the encashment of earnings and on transportation of banks' documents and goods;

13) outlays on renting broker's places;

14) outlays on the remuneration of services rendered by cash-settlement and by computer centres;

15) outlays connected with the performance of forfeiting and factoring transactions;

16) outlays on the guarantees, sureties and acceptances granted to the bank by other organisations;

17) commission fees (remuneration) for making transactions in currency valuables, and likewise at the expense and on behalf of clients;

18) positive difference resulting from the excess of negative revaluation of precious metals over positive one;

19) sums of allocations to the reserve against possible losses on loans indebtedness, where the outlays on forming it are accounted in the composition of outlays in the procedure and on the conditions which are established by Article 292 of this Code;

20) sums of allocations to the reserves against depreciation of securities, where the outlays for forming them are accounted in the composition of outlays in the procedure and on the conditions which are established by Article 300 of this Code;

21) other outlays involved in banking activity.

3. The sums of the negative revaluation of funds in foreign currency received by way of payment for the authorised capitals of credit institutions shall not be included in the bank's outlays.

Article 292. Outlays on Forming Banks' Reserves

1. For the purposes of the present Chapter, the banks shall have the right, in addition to the reserves against risky debts envisaged by Article 266 of the present Code, to set up a reserve against probable losses on loan indebtedness and on the other kinds of indebtedness equated to it (including indebtedness on inter-bank credits and deposits (hereinafter referred to as reserves against possible losses on loan indebtedness) stipulated by this Article.

The sums of deductions to the reserves against probable losses on the loans, formed in accordance with the procedure established by the Central Bank of the Russian Federation in conformity with the Federal Law on the Central Bank of the Russian Federation (the Bank of Russia), shall be recognised as outlays, while taking into account the restrictions stipulated by this Article.

When defining the tax base, not taken into account shall be outlays in the form of deductions to the reserves against possible losses on loan indebtedness set up by banks against the indebtedness referred to standard one in accordance with the procedure established by the Central Bank of Russia, as well as the reserves against possible losses on loan indebtedness, created against promissory notes, with the exception of promissory notes of third persons, discounted by banks, on which a protest against non-payment is filed.

2. Sums of deductions to a reserve against probable losses on loans, set up subject to the provisions of Item 1 of this Article shall be included in the composition of extra-realisation outlays in the course of the reporting (tax) period.

3. The sums of reserves against probable losses on the loans referred to the bank's outlays and not fully used by the banks in the reporting (tax) period for coverage of the losses incurred on account of the hopeless indebtedness on loans and on the indebtedness equated to loan indebtedness may be put off to the next reporting (tax) period. In this case, the sum of the newly created reserve shall be corrected by the sum of the residual of the reserve of the previous reporting (tax) period. If the sum of the reserve newly created in the reporting (tax) period is less than the sum of the residual of the previous reporting (tax) period, the difference shall be included in the composition of the bank's extra-sale incomes on the last day of the reporting (tax) period. If the sum of the newly created reserve is larger than the sum of the residual of the previous reporting (tax) period, the difference shall be included into the extra-sale outlays of banks on the last date of a reporting (tax) period.

Article 293. Specifics in Defining the Incomes of Insurance Institutions (Insurers)

1. To the incomes of an insurance institution, in addition to the incomes stipulated in Articles 249 and 250 of the present Code, which are defined taking into account the specifics stipulated by this Article, shall also be referred the incomes derived from insurance activity.

2. To the incomes of insurance institutions shall be referred, for the purposes of this Chapter, the following incomes from the performance of insurance activities:

1) insurance premiums (contributions) on the contracts of insurance, co-insurance and re-insurance. The insurance premiums (contributions) on the contracts of co-insurance shall be included in the composition of the incomes of the insurer (co-insurer) only in the amount of his share in the insurance premium (contribution) fixed in the contract of co-insurance;

2) the sums of the reduction (return) of the insurance reserves formed in the previous reporting periods, taking account for changes in the share of the re-insurers in the insurance reserves;

3) remunerations and bonuses (the form of the insurer's remuneration on the part of the re-insurer) on contracts of re-insurance;

4) remunerations from the insurers on contracts of co-insurance;

5) the sums of re-insurers' compensation of the share of the insurance payments on risks handed over into re-insurance;

6) the sums of interest on the premium deposits on the risks accepted into re-insurance;

7) incomes from the exercise of the right of claim of the insurer (beneficiary) against the persons responsible for inflicted damage which has passed to the insurer in conformity with the currently operating legislation;

8) the sums received in the form of sanctions for non-fulfilment of the terms of insurance contracts recognized by a debtor voluntary or on the basis of the court decision;

9) remunerations for rendering the services of an insurance agent or broker;

10) remunerations received by the insurer for rendering the services of a surveyor (for examination of the property accepted into insurance and for the issue of conclusions on the evaluation of the insurance risk) and of those of an average commissioner (for identifying the reasons for, the character and the amount of the losses in case an insurance accident takes place);

11) the sums of insurance premiums (fees) under contracts of reinsurance partially returned in the event of their early termination;

12) other incomes derived in the performance of insurance activity.

Article 294. Specifics in Defining the Outlays of Insurance Institutions (Insurers)

1. In addition to the outlays envisaged by Articles 254-269 of the present Code, to the outlays of an insurance institution shall also be referred those made in the performance of insurance activity which are envisaged by this Article. The outlays envisaged by Articles 254-269 of the present Code shall be defined taking account of the specifics envisaged by the present Article.

2. For the purposes of this Chapter, to the outlays of insurance institutions shall be referred the following outlays made in the performance of insurance activity:

1) the sums of deductions to the insurance reserves (taking into account changes in the share of re-insurers in the insurance reserves) formed on the grounds of the legislation on insurance in the order established by the federal executive power body for supervision over insurance activity;

2) insurance payments on contracts of insurance, co-insurance and re-insurance. For the purposes of this Chapter, to insurance payments shall be referred payments of rent, annuities, pensions and other payments envisaged by the terms of the contract of insurance;

3) the sums of insurance premiums (contributions) on the risks handed over into re-insurance. The provisions of the present Subitem shall be applied to the re-insurance contracts concluded by Russian insurance institutions with Russian and foreign re-insurers and brokers;

4) remunerations and bonuses out under the contract of re-insurance;

5) the sums of interest on the premium deposits on the risks handed over into re-insurance;

6) remunerations to the co-insurer on contracts of co-insurance;

7) the return of part of the insurance premiums (contributions), as well as of the redemption sums under a contract of insurance, co-insurance and re-insurance in the cases stipulated by legislation and (or) the terms of the contract;

8) remunerations for rendering services of an insurance agent and (or) insurance broker;

9) outlays involved in the payment to organisations or to individual natural persons for services involved in the insurance activity which they have rendered, including:

- for actuaries' services;

- for medical examination when concluding life and health insurance contracts, if payment for such medical examinations is to be effected by the insurer in accordance with the contracts;

- for detective services carried out by organisations which have licences for performing the said activity involved in establishing the justification of the insurance payments;

- for the services of specialists (including those of experts, surveyors, average commissioners and lawyers), invited to make an evaluation of the insurance risk, to determine the insurance cost of the property and the sum of the insurance payment to estimate the consequences of the insured accidents and to regulate the insurance payments;

- for services involved in manufacturing insurance certificates (policies), strict accounting forms, receipt slips and other such documents;

- for the services of organisations involved in carrying out the workers' written orders, involved in the transfer of insurance contributions from wages by way of non-cash settlements;

- for the services of public health institutions and of other organisations connected with the issue of references, statistical data, conclusions and other similar documents;

- for collector's services;

10) other outlays directly involved in insurance activity.

Article 295. Specifics in Determining the Incomes of Non-State Pension Funds

1. The incomes of non-state pension funds shall be determined separately as concerns the incomes derived from the placement of the pension reserves and those derived from the funds' constituent activities.

2. To the incomes derived from the placement of the pension reserves of the non-state pension funds in addition to the incomes envisaged by Articles 249 and 250 of the present Code, shall be referred, in particular, the incomes from the placement of the pension reserves funds into securities, from making investments and other deposits stipulated by legislation on non-state pension funds which shall be defined in accordance with the procedure established by the present Code for the corresponding kinds of incomes.

For the purposes of taxation, income derived from the placement of pension reserves shall be defined as the positive difference between the income received from the placement of pension reserves and the income calculated proceeding from the refunding rate of the Central Bank of the Russian Federation and from the sum of the placed reserve, while taking into account the actual placement under the condition of the placement of the said funds onto the pension accounts.

3. To the incomes derived from the funds' constituent activities shall be referred, in particular, in addition to the incomes stipulated by Articles 249 and 250 of the present Code:

- deductions from income derived from the placement of the pension reserves directed towards the formation of the property intended for providing for the fund's constituent activity, which are made in conformity with legislation on non-state pension funds;

- incomes from the placement of property intended for providing for the constituent activities of the funds into securities, and also from making investments and other deposits which shall be defined in accordance with the procedure established by the present Code for the corresponding kinds of incomes.