Article 330. Specifics in Keeping Tax Records on the Incomes and Outlays of Insurance Institutions

Taxpaying insurance institutions shall keep tax records on the incomes (outlays) derived (made) on contracts of insurance, co-insurance and re-insurance, on concluded contracts and on kinds of insurance.

A taxpayer's incomes in the form of the total sum of an insurance premium due to him shall be recognized as on the date of arising the taxpayer's liability with regard to the insurant under a contract resulting from the terms and conditions of contracts of insurance, coinsurance and re-insurance, regardless of the procedure for paying the insurance premium indicated in the appropriate contract (safe for longterm life insurance contracts). As regards long-term contracts related to life insurance, the income in the form of a part of an insurance premium shall be recognized at the moment of emerging the taxpayer's right to the receipt of a regular insurance premiums in compliance with the terms and conditions of said contracts.

A taxpayer in the procedure and on the conditions which are established by the legislation of the Russian Federation shall form insurance reserves. Taxpayers shall show changes in the amounts of insurance reserves for each type of insurance.

Insurance payments under a contract subject to making under the terms and conditions of said contract shall be included into the composition of outlays as on the date of arising a taxpayer's liability to pay out insurance money in favor of the insurant or insured persons (when insuring liability - in favor of the beneficiary) with regard to an insured accident which has actually occurred, shown as an absolute sum of money which should be calculated in compliance with the laws of the Russian Federation and rules of insurance. Income (outlay) in the form of reimbursement for a share of insurance payments shall be recognized on the date of arising a re-insurer's liability to make payment to re-insurant in connection with an insured accident which has actually occurred shown as an absolute sun of money in compliance with the terns and conditions of the contract of re-insurance.

The amounts of reimbursement due to a taxpayer as result of answering actions of recourse or acknowledged by guilty persons shall be regarded as an income:

on the date of entry of a court decision into legal force;

on the date of assuming by a guilty person the liability in writing to compensate for caused damage.

With this, the share of said amounts subject to reimbursement to reinsurers by re-insurants shall be included into the incomes (outlays) of the re-insurant and re-insurer accordingly at the moment established for said taxpayers in compliance with this Article.

The taxpayer shall keep records of insurance premiums (fees) under contracts of co-insurance insomuch as they fall at the share of the taxpayer in compliance with the terms and conditions of these contracts.

Article 331. Specifics in Keeping Tax Records of the Bank's Incomes and Outlays

Tax paying banks shall keep the tax records of the incomes and outlays received (made) in performing banking activity on the grounds of reflecting the operations and the deals in analytical accounting in conformity with the procedure for recognising the incomes and the outlays laid down in this Chapter.

Analytical accounting of the incomes and outlays received (made) in the form of interest on debt liabilities shall be kept in accordance with the order envisaged by Article 328 of the present Code.

The incomes and outlays on the economic and other operations, related to future reporting periods on which in the current reporting period advance payments were made shall be recorded in the sum of the funds to be referred to outlays at the beginning of the reporting period which they concern. Analytical accounting of the incomes and outlays on economic operations shall be kept in the context of every contract reflecting the date and the sum of the received (issued) advance payment, as well as the period in the course of which the said sum shall be referred to the incomes and outlays.

The commission fees for services rendered on correspondent relations, paid by the taxpayer, and the outlays on cash-settlement servicing, on opening accounts in other banks and on other similar operations shall be referred to the outlays as on the date of performing the operation, if in conformity with the contract are envisaged settlements on each particular operation, or as on the last day of the reporting (tax) period. The taxpayer shall keep records on the incomes involved in the performance of operations for the clients' cash-settlement servicing in a similar order for correspondent relations and other similar operations.

The sum of the positive (negative) differences arising from revaluating the cost of discounting noble metals in case it is changed shall be included in the composition of incomes in the form of the sum of the balance of an excess of the positive revaluation over the negative, and into the composition of the outlays in the form of the sum of the balance of an excess of the negative revaluation over the positive, as on the last day of the reporting (tax) period. In the sale of noble metals, seen as income shall be the positive difference between the price of sale and the cost of discounting of such noble metals as on the date of their sale, and as outlays - the negative difference. Seen as the cost of discounting of noble metals shall be their purchase cost taking account of the revaluation carried out in the course of the time when such metals are at the disposal of the taxpayer, in conformity with the requirements of the Central Bank of the Russian Federation.

When recording operations with the financial instruments of futures deals whose basic assets are foreign currency and noble metals, the claims and liabilities shall be defined taking account of the revaluation of the cost of the basic asset in connection with the growth (fall) of the exchange rate of foreign currencies to the Russian rouble and of the prices on noble metals established by the Central Bank of the Russian Federation.

In the deals involved in the purchase and sale operations with precious stones, the taxpayer shall reflect in the tax records the qualitative and the value (the mass and the price) characteristics of the acquired and sold precious stones. The revaluation of the purchase cost of precious stones up to the price list prices shall not be recognised as taxpayer's income (outlays). If the sold precious stones are withdrawn, the income (loss) shall be defined in the form of the difference between the price of sale and the cost of discounting. Seen as the cost of discounting shall be the price of acquisition of precious stones.

Analytical accounting shall be kept on every purchase and sale contract on precious stones. In analytical accounting shall be reflected the dates of performance of purchase and sale operations, the purchase price and the sales price, as well as the quantitative and qualitative characteristics of the precious stones.

Article 332. Specifics in Keeping Tax Records on the Incomes and Outlays in the Execution of Contracts on Trust Management of Property

Tax paying organisations which manage property under the terms of a contract on trust management shall be obliged to keep separate analytical accounting on the incomes and outlays connected with the execution of contracts of trust management, and on the incomes received in remuneration for trust management - in the context of every contract on the trust management.

Analytical accounting shall supply information which makes it possible to identify the founder of the contract on trust management and the beneficiary, the date of entry into force and the date of termination of a contract on trust management, the cost and the composition of property received into trust management, and the procedure and the deadlines for making settlements on the trust management. When making deals with the property received into trust management, the incomes and outlays shall be reflected in accordance with the rules for the formation of the incomes and the outlays established by this Chapter.

The incomes of the founder of the management and of the trust manager under a contract on the trust management shall be formed in every reporting (tax) period, irrespective of whether making settlements in the course of the term of validity of the contract on the trust management is or is not envisaged by such contract.

The sum of remuneration to the trust manager shall be recognised as the outlays on the contract on the trust management; it reduces the sum of the income derived from operations with the property handed over to trust management. If the third person - the beneficiary - is envisaged as the beneficiary under a contract on the trusted management, the outlays (losses) (safe for remuneration) in the execution of the contract on trust management shall not reduce the incomes received by the founder of the contract on the trust management on other grounds.

When the depreciated property is returned to the founder of the contract on the trust management, such property shall be included in the same depreciation group, and the depreciation shall be charged by the same rates and in the same order as before the start of the contract on the trust management. The depreciation charged for the whole period of use of such property before the date of its return to the founder of the contract on the trust management shall be taken into account when defining the residual cost of such property. If the beneficiary is a third person, the outlays (losses) from the reduction in the cost of such property when it is returned shall not be accepted for the reduction of the founder's tax base.

Article 333. Specifics in Keeping Tax Records on the Incomes and Outlays in REPO Deals with Securities

The analytical accounting of the purchase and sale deals with securities with an obligatory redemption in the second part of REPO operations shall be kept in the analytical registers of tax records especially assigned for this purpose, in the context of every contract, for monetary funds in foreign currency - in the double estimate: in foreign currency and in roubles.

The cost of discounting of the securities subject to redemption in the execution of the second part of the contracts on the purchase and sale of securities with reverse redemption, shall be effected by tax payers who are sellers of securities in execution of the first part of the contracts on the purchase and sale of securities with reverse redemption.

Sellers of securities in the reverse part of REPO operations shall record the securities from the date of their acquisition in conformity with the first part of REPO operations until the time of their sale (of their redemption by the first participant in the deal).

In the accounting shall be reflected the date of sale and the cost of the sold securities, subject to redemption in the execution of the second part of agreements on the purchase and sale of securities with reverse redemption, the date of redemption and the cost of the securities redeemed in execution of the second part of agreements on the purchase deals.

The rise (fall) in the cost of such securities in connection with the growth (reduction) of the official exchange rates of foreign currencies to the Russian rouble shall not be recognised as income (outlay) on a REPO operation, and such change in the redemption price of the securities shall be taken into account by the taxpayer as extra-sales incomes (outlays).

Similar liabilities on recording the said operation shall be imposed upon taxpayers who are buyers in the execution of the first part of agreements on the deals on the purchase and sale of securities with reverse redemption.