Article 346.17. Procedure for Recognizing the Incomes and the Outlays

1. In the present Chapter, taken as the date of receiving the incomes shall be the day of arrival of the funds onto the accounts in banks and (or) to the cashier's office, or of the receipt of other property (works, services) and (or) of the property rights (the cash-based accounting method).

2. Recognized as the tax payers's outlays shall be the outlays after their actual remuneration.

The outlays on the acquisition of fixed assets, recorded in the order stipulated in Item 3 of Article 346.16 of the present Code, shall be reflected on the last day of the reporting (tax) period.

Article 346.18. Tax Base

1. If the object of taxation are the incomes of an organization or of an individual businessman, recognized as the tax base shall be the monetary expression of the incomes of the organization or of the individual businessman.

2. If the objects of taxation are the incomes of an organization or of an individual businessman, reduced by the size of the outlays, recognized as the tax base shall be the monetary expression of the incomes, reduced by the size of the outlays.

3. The incomes and the outlays, expressed in foreign currency, shall be recorded in aggregate with the incomes, expressed in roubles. The incomes and the outlays expressed in foreign currency, shall be recalculated into roubles in accordance with the official exchange rate of the Central Bank of the Russian Federation, established as on the date of receiving the incomes and (or) as on the date of making the outlays, respectively.

4. The incomes, derived in kind, shall be recorded in market prices.

5. When determining the tax base, the incomes and the outlays shall be defined by the progressive total as from the start of the tax period.

6. The tax payer, who applies as an object of taxation the incomes reduced by the size of the outlays, shall pay the minimum tax in accordance with the procedure, envisaged in the present Item.

The sum of the minimum tax shall be computed in the amount of one per cent of the tax base, which is comprised by the incomes, defined in accordance with Article 346.15 of the present Code.

The minimum tax shall be paid, if the sum of the tax, computed in the general order, is less than the sum of the computed minimum tax.

In the following tax periods, the tax payer has the right to include the sum of the difference between the sum of the paid up minimum tax and the sum of the tax, computed in the general order, into the outlays when computing the tax base, and among other things to increase the sum of the losses, which may be put off to the future in conformity with the provisions of Item 7 of the present Article.

7. The tax payer, using as the object of taxation the incomes, reduced by the amount of the outlays, has the right to reduce the tax base by the sum of the loss, sustained in accordance with the results of the previous tax periods, in which the tax payer applied the simplified system of taxation and used as the object of taxation the incomes, reduced by the amount of the outlays. Seen as the loss shall in this case be an excess of the outlays, defined in accordance with Article 346.16 of the present Code, over the incomes, defined in accordance with Article 346.15 of the present Code.

The loss, mentioned in the present Item, cannot reduce the tax base by more than 30 per cent. The remaining part of the loss may be put off to the next tax periods, but to no more than ten tax periods.

The tax payer is obliged to keep the documents, confirming the volume of the sustained loss and the sum, by which the tax base was reduced in every tax period, in the course of the entire term of use of the right to reducing the tax base by the sum of the loss.

The loss, sustained by the tax payer when he applies the general regime of taxation, shall not be accepted if he goes over to the simplified system of taxation.

The loss, sustained by the tax payer when the applies the simplified system of taxation, shall not be accepted if he goes over to the general regime of taxation.

Article 346.19. Tax Period. Reporting Period

1. Recognized as the tax period shall be a calendar year.

2. Recognized as the reporting periods shall be the first quarter, a half year and nine months of a calendar year.

Article 346.20. Tax Rates

1. If the object of taxation are the incomes, the tax rate shall be established in the amount of six per cent.

2. If the object of taxation are the incomes, reduced by the amount of the outlays, the tax rate shall be established in the amount of 15 per cent.

Article 346.21. Procedure for the Computation and the Payment of the Tax

1. The tax shall be computed as the percentages share of the tax base, corresponding to the tax rate.

2. The sum of the tax in accordance with the results of the tax period shall be defined by the tax payer on his own.

3. The tax payers, who have selected as the object of taxation the incomes, shall compute the sum of the quarterly advance payment on the tax in accordance with the results of every reporting period, proceeding from the tax rate and from the actually derived incomes, calculated by the progressive total as from the start of the tax period and till the end of, respectively, the first quarter, the half-year and nine months, with an account for the earlier paid sums of quarterly advance payments on the tax.

The sum of the tax (of the quarterly advance payments on the tax), computed for the tax (reporting) period, shall be reduced by the said tax payers by the sum of insurance premiums for the obligatory pension insurance, which are paid in the same period of time in conformity with the legislation of the Russian Federation. The sum of the tax (of the quarterly advance payments on the tax) cannot be reduced by more than 50 per cent.

4. The tax payers, who have selected as the object of taxation the incomes, reduced by the amount of the outlays, in accordance with the results of every reporting period, shall compute the sum of the quarterly advance payment on the tax proceeding from the tax rate and from the actually derived incomes, reduced by the amount of the outlays, computed by the progressive total as from the start of the tax period and till the end of, respectively, the first quarter, the half-year and nine months, with an account for the earlier entered sums of the quarterly advance payments on the tax.

5. The entered advance payments on the tax shall be set off against the payment of the tax in accordance with the results of the tax period.

6. The entry of the tax and of the quarterly advance payments on the tax shall be effected at the place of location of an organization (at the place of residence of an individual businessman).

7. The tax, subject to payment upon an expiry of the tax period, shall be paid not later than the term, fixed for submitting tax declarations for the corresponding tax period in Item 1 of Article 346.23 of the present Code.

The quarterly advance payments on the tax shall be made not later than on the 25th day of the first month, next to the expired reporting period.

Article 346.22. Entry of the Sums of the Tax

The sums of the tax shall be entered onto the accounts of federal treasury bodies to be subsequently distributed among the budgets of all levels and the budgets of the state extra-budgetary funds in conformity with the budgetary legislation of the Russian Federation.

Article 346.23. Tax Declaration

1. The tax payers - the organizations shall submit tax declarations after an expiry of the tax (reporting) period to the tax bodies at the place of their location.

The tax declarations in accordance with the results of the tax period shall be submitted by the tax payers - the organizations not later than on March 31 of the year, next to the expired tax period.

The tax declarations in accordance with the results of the reporting year shall be submitted not later than in 25 days since the day of the end of the corresponding reporting period.

2. The tax payers - the individual businessmen shall submit tax declarations after an expiry of the tax period to the tax bodies at the place of their residence not later than on April 30 of the year, next to the expired tax period.

Tax declarations in accordance with the results of the reporting period shall be submitted not later than in 25 days since the day of the end of the corresponding reporting period.

3. The form for the tax declarations and the procedure for filling them out shall be approved by the Ministry of Taxation of the Russian Federation.

Article 346.24. Tax Recording

1. The tax payers shall be obliged to keep tax records on the indices of their activity, necessary for the computation of the tax base and of the sum of the tax on the basis of the book for recording the incomes and the outlays.

2. The form of the book for recording the incomes and the outlays, and the procedure for reflecting in it economic transactions by organizations and by individual businessmen, applying the simplified system of taxation, shall be approved by the Ministry of Finance of the Russian Federation.

Article 346.25. Specifics in the Computation of the Tax Base in Transition from the General Regime of Taxation to the Simplified Taxation System, and from the Simplified Taxation System to the General System of Taxation

1. Organizations, which have earlier applied the general regime of taxation with the use of the method of computations, shall fulfil the following rules when going over to the simplified system of taxation:

1) on the date of transition to the simplified system of taxation, into the tax base shall be included the sums of the monetary funds, received in the period of application of the general regime of taxation for the remuneration under the contracts, which the tax payer shall execute after going over to the simplified system of taxation;

2) on the date of transition to the simplified system of taxation, in the tax recording shall be reflected the residual cost of the fixed assets, acquired and paid for in the period of application of the general regime of taxation, in the form of the difference between the price of acquisition and the sum of the charged depreciation in accordance with the demands of Chapter 25 of the present Code.

With respect to the fixed assets, recorded as the tax payer's, which shall be remunerated after transition to the simplified system of taxation, the residual cost to be defined in accordance with the present Item shall be recorded beginning with the month, next to that month during which the given object of fixed assets was paid for;

3) the monetary funds, received after transition to the simplified system of taxation, shall not be included into the tax base, if according to the rules for the tax recording by the method of computations, the said sums were included into the incomes when computing the tax base on the tax on the profit of organizations, while the general regime of taxation was applied;

4) the outlays, made by the tax payer after going over to the simplified system of taxation, shall be recognized as the outlays to be subtracted from the tax base as on the date of their effecting, if these outlays were settled in the period of application of the general regime of taxation, or as on the date of payment, if they were effected after the organization has shifted to the simplified system of taxation;

5) the monetary funds, entered after transition to the simplified system of taxation in payment for the tax payer's outlays, shall not be subtracted from the tax base, if before transition to the simplified system of taxation such outlays were taken into account in the computation of the tax base for the tax on the profit of organizations in conformity with Chapter 25 of the present Code.

2. The organizations, 3which have applied the simplified system of taxation, shall observe the following rules as they go over to the general regime of taxation with the use of the method of computations:

1) the monetary funds, received after transition to the general regime of taxation, shall not be included into the tax base, if according to the rules for the tax recording the said sums were included into the incomes when the tax base was computed with the application of the simplified system of taxation;

2) the outlays, made by the tax payer in the period after transition to the general regime of taxation, shall be recognized as the outlays to be subtracted from the tax base as on the date of their effecting, regardless of the date when such outlays were settled.

3. When transition is made to the general regime of taxation, in the tax records as on the date of the said period shall be reflected the residual cost of the fixed assets, defined proceeding from their initial cost minus the sums of depreciation, computed for the period of application of the simplified taxation system in accordance with the procedure, envisaged in Chapter 25 of the present Code. In this case, the sums of the outlays on the acquisition of fixed assets, accepted in the computation of the tax base for this period in conformity with the present Chapter, if they do not exceed the sums of depreciation, computed in conformity with Chapter 25 of the present Code, shall not reduce the residual cost of the fixed assets as on the date of the tax payer's transition to the general regime of taxation, while the obtained difference shall be recognized as an income in the transition to the general regime of taxation.