Article 311. Elimination of Double Taxation

1. The incomes received by the Russian organisation from sources outside the Russian Federation shall be taken into account when delineating its tax base. The said incomes shall be recorded in full volume taking account of the outlays made both in the Russian Federation beyond its boundaries.

2. In delineating the tax base, the outlays made by the Russian organisation in connection with the receipt of incomes from sources outside the Russian Federation shall be deducted in the order and in the amount established by this Chapter.

3. The sums of tax paid out in conformity with the legislation of foreign states by the Russian Federation, shall be set off when this organisation pays tax in the Russian Federation. The sum of the set off sums of the taxes paid outside the Russian Federation cannot exceed the sum of the tax subject to payment by this organisation in the Russian Federation.

The offsetting is effected under the condition that the tax payer submits the document confirming the payment (withholding) of the tax outside the Russian Federation: for the taxes paid by the organisation itself - those certified by the tax body of the corresponding foreign state, and for taxes withheld in conformity with the legislation of foreign states or with an international agreement by the tax agents - the confirmation by the tax agent.

The confirmation indicated in this Item shall be valid within the tax period in which it was submitted to the tax agent.

Article 312. Special Provisions

1. When applying provisions of international treaties of the Russian Federation, the foreign organisation shall submit to the tax agent, paying out the income, confirmation of the fact that the foreign organisation has a permanent place of location in the state with which the Russian Federation has signed an international treaty (agreement), regulating the questions of taxation which shall be certified by a competent body of the corresponding foreign state. Where the given confirmation is in a foreign language, its translation into Russian shall be likewise submitted to the tax agent.

When the foreign organisation having the right to the receipt of income submits the confirmation mentioned in Item 1 of this Article to the tax agent, paying out the income before the date of the payment out of the income with respect to which a privileged regime of taxation is envisaged by the international treaty of the Russian Federation, with respect to such income is applied relief from withholding the tax from the source of payment, or the tax from the source of the payment is withheld at a reduced rate.

2. Return of excessively withheld tax on incomes paid out earlier to foreign organisations with respect to which international treaties of the Russian Federation, regulating the questions of taxation, envisage a special taxation regime, shall be effected under the condition that the following documents are submitted:

- an application for the return of the withheld tax, made out in accordance with the form established by the Ministry of Taxation of the Russian Federation;

- a confirmation of the fact that at the moment of the payment out of the income this foreign organisation had its permanent place of location in a state with which the Russian Federation has concluded an international treaty (agreement) regulating the questions of taxation which shall be certified by the competent body of the corresponding foreign state;

- the copies of the agreement (or of another document), in conformity with which income is paid out to the foreign legal entity, and the copies of the payment documents confirming the transfer of the sums of the tax, subject to return, to the budget.

If the above documents are compiled in a foreign language, the tax body shall have the right to demand that their translation into Russian also be submitted. No notary's certification of the contracts, payment documents or their translation into Russian shall be required. And no other documents, except for the above-listed, shall be demanded.

The application for the return of the sum of taxes earlier withheld in the Russian Federation, as well as the other documents listed in this Item, shall be submitted by the foreign receiver of the income to the tax body at the place of the tax agent's being put onto records within three years from the moment of the end of the tax period in which the tax was paid out.

Return of tax earlier levied (and paid up) shall be effected by the tax body at the place of registration of the tax agent in the currency in which this tax was withheld and transferred to the budget by the tax agent, within a month's term from the day of submitting the application and the other documents mentioned in this Item.

Article 313. Tax Records. General Provisions

The taxpayers shall calculate the tax base by the results of every reporting (tax) period on the grounds of the data of the tax records.

Tax recording shall be seen as the system for summing up information for defining the tax base for tax on the grounds of the data from the basic documents grouped in accordance with the procedure stipulated by the present Code.

Where in bookkeeping registers there is not enough information for determining the tax base in compliance with the requirements of this Chapter, the taxpayer shall be entitled to enter independently additional requisite elements to bookkeeping registers applied, thus forming taxation registers, or to keep independent taxation registers.

Tax recording shall be effected for the purpose of accumulating complete and authentic information on the procedure for recording for the purposes of taxation the economic operations performed by the taxpayer in the course of the reporting (tax) period, as well as for supplying with information the internal and external users for exerting control over the correctness of the calculation, over the fullness and timeliness of the calculation and over the payment of tax into the budget.

The system of tax recording shall be organised by the taxpayer on his own, proceeding from the principle of the successive application of the norms and rules of tax recording, that is, it shall be applied consecutively from one tax period to another. The procedure for keeping the tax records shall be established by the taxpayer in the accounting policy for the purposes of taxation to be approved by the corresponding Order (Direction) of the manager. The tax and other bodies shall not be empowered to establish for taxpayers obligatory forms of tax accounting documents.

The taxpayer shall change the procedure for recording individual economic operations and (or) objects for the purposes of taxation in cases of changes in legislation or of the applied methods for recording. Decisions on any changes in the accounting policy for the purposes of taxation in the event of changing applied methods for recording shall be taken as of the start of a new tax period, and in the event of changes in the legislation on taxes and fees it shall be done no earlier than from the moment of entry into force of changed rules of said legislation.

If the taxpayer has begun to perform any new kinds of activity, he shall also be obliged to define and to reflect in the accounting policy for the purposes of taxation the principles and the procedure for reflecting these kinds of activity for taxation purposes.

The data of tax recording shall reflect the procedure for the formation of the sum of the incomes and outlays, the way of determining the share of the outlays recorded for the purposes of taxation in the current tax (reporting) period, the sum of the residual of the outlays (losses) which shall be referred to the outlays in the next tax periods, the order of accumulation of the sums of the set up reserves, as well as the sum of indebtedness by settlements with the budget on the tax.

Seen as confirmation of the data of the tax records shall be:

1. the basic accounting documents (including a reference note from the accountant);

2. the analytical tax recording registers;

3. the calculation of the tax base.

The forms of analytical tax recording registers for determining the tax base which are the documents for the tax recording shall contain the following requisites:

- the name of the register;

- the period (the date) of compilation;

- the operation's measuring indices in kind (if this is possible) and in the monetary expression;

- the names of the economic operations;

- the signature (deciphering of the signature) of the person responsible for compiling the said registers.

The content of the data of the tax recording (including the data from the basic documents) shall be seen as a tax secret. The persons who have access to the information contained in the data of the tax records shall be obliged to keep tax secrets. They shall be held responsible for divulging it in conformity with the effective legislation.

Article 314. Analytical Tax Recording Registers

Analytical registers of tax records shall be seen as consolidated forms for the systematisation of the data of tax recording for the reporting (tax) period, grouped in accordance with the demands of this Chapter, without distribution (reflection) by business accounting accounts.

The data of the tax records shall be seen as the data which is recorded in the development tables, the accountant's reference notes and other taxpayer's documents which arrange information on the objects of taxation into groups.

The formation of the tax recording data presupposes continuity in reflecting in chronological order the objects of recording for the purposes of taxation (including operations whose results are recorded in several reporting periods or are transferred to several years).

Analytical accounting of the data of tax recording shall be organised by the taxpayer so that it shall reveal the procedure of the formation of the tax base.

Analytical tax recording registers are intended for the systematisation and accumulation of information contained in the basic documents accepted for recording, and of the analytical data of the tax records for reflecting them in the calculation of the tax base.

The tax recording registers shall be kept in accordance with special forms on paper carriers, in electronic form and (or) on any machine-readable carriers.

The forms of the tax recording registers and the way of reflecting in them the analytical data of the tax records and of the data of the basic documents shall be elaborated by the taxpayer on his own and shall be established in the Appendices on the organisation's accounting policy for the purposes of taxation.

The correctness of reflecting the economic operations in the tax recording registers shall be guaranteed by the persons who have compiled and signed them.

During the storage of the tax recording registers their protection from unsanctioned corrections shall be ensured.

The correction of mistakes in the tax recording register shall be justified and confirmed with the signature of the responsible person who has made the correction, with an indication of the date and with the substantiation of the effected correction.

Article 315. Procedure for Making the Calculation of the Tax Base

The tax base for the reporting (tax) period shall be calculated by the taxpayer on his own in conformity with the norms established by the present Chapter, proceeding from the data of the tax records, by progressive total from the year's start.

The calculation of the tax base shall contain the following data:

1. The period for which the tax base is defined (from the start of the tax period by progressive total).

2. The sum of the incomes from sales received in the reporting (tax) period, including:

1) the earnings from the sale of commodities (works, services) of self production, as well as the earnings from sale of property and of rights of property, with the exception of the earnings mentioned in Subitems 2 - 7 of this Item;

2) the earnings from the sale of securities not circulated on the organised market;

3) the earnings from the sale of securities circulated on the organized market;

4) the earnings from the sale of purchased commodities;

5) the earnings from the sale of the financial instruments of futures deals not circulated on the organised market;

6) the earnings from the sale of basic assets;

7) the earnings from the sale of commodities (works, services) of servicing production and economies.

3. The sum of the outlays made over the reporting (tax) period, minus the sum of the incomes from sale, including:

1) the outlays on the output and sale of commodities (works, services) of self manufacture, as well as the outlays made on the sale of the property and of the rights of property, with the exception of the outlays mentioned in Subitems 2 - 6 of this Item.

The total sum of the outlays shall be reduced by the sums of the residuals of the production in progress, of the residuals of products in the store-house and of products shipped but not sold as at the end of the reporting (tax) period, identified in conformity with Article 319 of the present Code;

2) the outlays made in the sale of securities not circulated on the organised market;

3) the outlays on the sale of securities circulated on the organized market;

4) the outlays made on the sale of the purchased commodities;

5) the outlays connected with the sale of fixed assets;

6) the outlays made by the servicing productions and economies as they sold commodities (works, services).

4. The profit (loss) from sales, including:

1) the profit from the sale of home-produced commodities (works, services), as well as the profit (loss) from the sale of property and of the rights of property, with the exception of the profit (loss) pointed out in Subitems 2, 3, 4 and 5 of this Item;

2) the profit (loss) from the sale of securities not circulated on the organised market;

3) the profit (loss) from the sale of securities circulated at the organized market;

4) the profit (loss) from the sale of the purchased commodities;

5) the profit (loss) from the sale of fixed assets;

6) the profit (loss) from the sale of the servicing productions and economies.

5. The sum of extra-sale incomes including:

1) incomes from operations with the financial instruments of futures deals circulated on the organized market;

2) incomes from operations with the financial instruments of futures deals not circulated on the organized market.

6. The sum of extra-sale outlays, especially:

1) outlays on operations with the financial instruments of futures deals circulated on the organized market;

2) outlays on operations with the financial instruments of futures deals not circulated on the organized market.

7. The profit (loss) from extra-sales operations.

8. The total tax base for the reporting (tax) period.

9. To define the sum of the profit subject to taxation, from the tax base shall be excluded the sum of the loss subject to being put off in the order envisaged by Article 283 of the present Code.

Article 316. Procedure for the Tax Recording of the Incomes from Sales

The incomes from sales shall be defined by the kind of activity, if for the given kind of activity is envisaged other taxation procedure, is applied a different tax rate or is envisaged the order of recording profits and losses, received (incurred) from the given kind of activity differing from the general order.

The sum of receipts from sales shall be defined in conformity with Article 249 of the present Code, taking account for the provisions of Article 251 of the present Code as on the date of recognising the incomes and outlays in accordance with the method for recognising the incomes and the outlays selected by the taxpayer for the purposes of taxation.

If the price of the sold commodity (works, services) or of the right of property is expressed in the currency of a foreign state, the sum of the earnings from the sale shall be recalculated into roubles as on the date of sale.

If the price of the sold commodities (works, services) and property rights is expressed in conventional units, the sum of earnings from the sale thereof shall be recalculated into roubles at the rate established by the Central Bank of the Russian Federation as on the date of the sale. With this, arising sum differences shall be included into the composition of extra-sale incomes (outlays) depending on the difference which arises.

If the sale is effected through a commission agent, the tax paying consignor shall define the sum of the earnings from the realisation as on the date of sale on the grounds of the notice from the commission agent on the realisation of the property (of the rights of property) belonging to the consignor. The commission agent shall be obliged to notify the consignor of the date of sale of the property belonging to him, in the course of three days as from the moment of the end of the reporting period in which such sale has taken place.

If the settlements in the sale are carried out on the terms of granting the commodity credit, the sum of the earnings shall also be defined as on the date of sale and shall include the sum of interest levied for the period from the moment of the shipment to the moment of the transfer of the right of property to the commodities.

An interest levied for the use of the commodity credit as from the moment of the transfer of the right of property to the commodities until the moment of the complete settlement on the liabilities shall be included into the composition of the extra-sales outlays.