Section VIII. 1. Special Tax Regimes

Chapter 26.1. A Taxation System for Agricultural Producers

(Uniform Agricultural Tax)

Article 346.1. The General Terms for Application of the Taxation System for Agricultural Producers (Uniform Agricultural Tax)

1. A taxation system for agricultural producers (uniform agricultural tax) (hereinafter referred to as "tax") is instituted by the present Code and put into effect by a law of Russian region concerning this tax.

2. Organisations, peasant (individual) farms and individual entrepreneurs shall switch to the payment of the tax in the manner established by the present chapter, no matter the numbers of employees.

3. Organisations, peasant (individual) farms and individual entrepreneurs deemed agricultural producers under the present chapter shall switch to the payment of the tax if in the preceding calendar year the portion of proceeds from the sale of the agricultural products they produced in agricultural lands (object of taxation under Article 346.3 of the present Code), in particular, from the sale of products resulting from processing thereof, in the total proceeds of these organisations, peasant (individual) farms and individual entrepreneurs from the sale of goods (works, services) made up at least 70 per cent.

4. The payment of the tax by organisations, peasant (individual) farms) and individual entrepreneurs shall envisage for them a replacement of the aggregate of the taxes and fees payable under Articles 13, 14 and 15 of the present Code, except for the below taxes and fees:

1) value added tax;

2) excise taxes;

3) payment for environmental pollution;

4) tax on the purchase of foreign banknotes and legal tenders denominated in a foreign currency;

5) state duty;

6) customs duty;

7) tax on the property of natural persons (in as much as it concerns housing buildings, premises and structures owned by individual entrepreneurs);

8) tax on property transferred by succession or donation;

9) license fees.

The organisations, peasant (individual) farms and individual entrepreneurs which have switched to the payment of the tax shall pay compulsory pension insurance contributions under the legislation of the Russian Federation on pensions.

5. The organisations, peasant (individual) farms and individual entrepreneurs which have switched to the payment of the tax shall not be relieved from the duties of tax agents specified in the present Code.

Article 346.2. Taxpayers

1. Taxpayers shall be deemed organisations, peasant (individual) farms and individual entrepreneurs being agricultural producers.

2. For the purposes of the present chapter "agricultural producers" means organisations, peasant (individual) farms and individual entrepreneurs producing agricultural products on agricultural lands (object of taxation under Article 346.3 of the present Code) and selling these products, in particular, products resulting from processing thereof, if the portion of proceeds from the sale of the products make up at least 70 per cent of the total proceeds from the sale of the goods (works, services) of these organisations, peasant (individual) farms and individual entrepreneurs.

The following are not deemed agricultural producers: industrialtype agricultural enterprises (poultry factories, greenhouse amalgamated works, animal state farms, cattle breeding farms etc.) determined according to a list endorsed by the legislative (representative) bodies of Russian regions in keeping with the procedure established by the Government of the Russian Federation.

Article 346.3. Object of Taxation

The object of taxation shall be agricultural lands being owned, possessed and/or used.

Article 346.4. Tax Base

1. The tax base is the area of agricultural land recognised as object of taxation under Article 346.3 of the present Code comparable by land registry value.

2. The method of determining the area of agricultural land comparable by land registry value shall be established and approved by the Government of the Russian Federation.

Article 346.5. Tax Period

The tax period is quarter.

Article 346.6. Tax Rate

1. The tax rate shall be set by the legislative (representative) bodies of Russian regions in roubles and kopecks per hectare of the agricultural land comparable by land registry value located on their territories.

2. The size of the tax rate shall be determined as a ratio of one quarter of the sum of taxes and fees payable by agricultural producers to the budgets of all levels under the general taxation regime for the preceding calendar year, except for the taxes and fees the duty to pay which remains in effect in the case of switch over to the payment of the tax, and the area of agricultural land comparable by land registry value. If the agricultural lands owned, possessed and/or used by agricultural producers are located on the territories of several Russian regions which have instituted the tax the sum of taxes and fees specified in the present item shall be distributed between relevant Russian regions pro rata to the area of the agricultural lands located on the territories thereof for the purposes of tax rate calculation.

3. The size of the tax rate for taxpayers whose sum of received income for the tax period per hectare of agricultural land by comparable land registry value exceeds its land registry value by more than ten times shall be increased by 35 per cent.

4. The legislative (representative) bodies of Russian regions are entitled to increase (cut) the tax rate determined in the manner established by Item 2 of the present article by up to 25 per cent for specific categories of taxpayers.

Article 346.7. Tax Calculation Procedure

The amount of tax shall be calculated by the taxpayer as the tax rate set in compliance with Article 346.6 of the present Code times the tax base determined in compliance with Article 346.4 of the present Code.

Article 346.8. Procedure and Term for Payment of the Tax

The tax shall be paid by the taxpayer at the place where the agricultural lands are located within a term ending the 20th day of the month following the past tax period.

Article 346.9. Crediting Tax Amounts

1. The tax amounts paid by organisations shall be credited to the accounts of federal treasury bodies to be further distributed according to the following rates:

1) the federal budget: 30.0 per cent of the sum total of the tax;

2) the Federal Fund of Obligatory Medical Insurance: 0.2 per cent;

3) territorial funds of obligatory medical insurance: 3.4 per cent;

4) the Social Insurance Fund of the Russian Federation: 6.4 per cent;

5) the budgets of Russian regions and local budgets: 60.0 per cent of the sum total of the tax.

2. The tax amounts paid by peasant (individual) farms and individual entrepreneurs shall be credited to the accounts of federal treasury bodies to be further distributed according to the following rates:

1) the federal budget: 10.0 per cent of the sum total of the tax;

2) the budgets of Russian regions and local budgets: 80.0 per cent;

3) the Federal Fund of Obligatory Medical Insurance: 0.2 per cent;

4) territorial funds of obligatory medical insurance: 3.4 per cent;

5) the Social Insurance Fund of the Russian Federation: 6.4 per cent of the sum total of the tax.

3. Distribution of the tax amounts subject to entry in the budgets of Russian regions and local budgets shall be established in compliance with regulatory legal acts of the legislative (representative) bodies of the Russian regions.

Article 346.10. Accounting and Reporting. The Tax Return

1. Taxpayers shall keep record of their incomes (expenses) and objects of taxation in compliance with the legislation on taxes and fees.

2. The tax return shall be filed by the taxpayer with the tax body at the place of location of the agricultural lands within a term ending the 10th day of the month following the past tax period.

3. The form of tax return and the procedure for filling it out shall be approved by the federal executive governmental body in charge of taxes and fees by agreement with the federal executive governmental body in charge of finance.

4. The switching over to the payment of the tax shall not relieve organisations, peasant (individual) farms and individual entrepreneurs from the duties established by regulatory legal acts of the Russian Federation upon the filing of financial and other statements/reports required by the legislation of the Russian Federation on taxes and fees.