Tax Code Of The Russian Federation

PART ONE NO. 146-FZ OF JULY 31, 1998
(with the Amendments and Additions of March 30, July 9, 1999, January 2, 2000, December 29, 2000, May 30, August 6, 7, 8, November 27, 29, December 28, 29, 30, 31, 2001, May 29, July 24, 25, December 24, 27, 31, 2002, May 6, 22, 28, June 6, 23, 30, July 7, November 11, December 8, 23, 2003)
Passed by the State Duma on July 16, 1998
Approved by the Council of Federation on July 17, 1998

Part I
Section 4
Chapter 7
Objects of Taxation
Chapter 8
Fulfillment of the Obligation to Pay Taxes and Fees
Chapter 9
Changes in Deadlines for Payment of Taxes and Fees
Chapter 10
Demand to Pay Taxes and Fees
Chapter 11
Methods of Enforcement of Obligations Relating to Payment of Taxes and Fees
Chapter 12
Offset and Refund of Overpaid or Over Collected Amounts

Chapter 8. Fulfillment of the Obligation to Pay Taxes and Fees


Article 44. Emergence, Alteration and Termination of Obligation for Payment of a Tax or Fee


 1. The obligation to pay a tax or fee shall emerge, alter and terminate on the grounds established by the present Code or other acts of legislation on taxes and duties.
 2. An obligation to pay a specific tax shall be imposed on a taxpayer/payer of duty with the emergence of grounds that require payment of this tax or duty, as established by the legislation on taxes and duties.
 3. An obligation to pay a tax and/or duty shall terminate in the following cases:
  1)  once the taxpayer of payer of duty pays the tax and/or duty;
  2)  with the emergence of circumstances with which the legislation on taxes and duties associates termination of the obligation to pay the tax or duty in question;
  3)  with the death of an individual taxpayer or recognition of him as decedent in accordance with the procedure established by civil legislation. The liability of the decedent or one recognized as decedent with respect to property taxes shall be repayable on the account of his estate;
  4)  liquidation of an institutional taxpayer after the liquidation commission has settled all budget claims (claims of extra-budgetary funds) in accordance with Article 49 of the present Code.

Article 45. Fulfillment of an Obligation to Pay a Tax or a Duty


 1. It shall be the duty of taxpayers/payers of duties to fulfill the obligation to pay taxes/duties on their own, unless otherwise provided by the legislation on taxes and duties.
 The obligation to pay a tax or duty shall be fulfilled within the time limits established by the legislation on taxes and duties. A taxpayer shall have the right to fulfill his obligation to pay taxes/duties ahead of time.
 Default on the duty of tax payment or improper discharge of this duty shall be grounds for sending a claim for tax payment to a taxpayer by the tax body, the agency of the governmental extra-budgetary fund or the customs agency.
 In the case of failure to pay or failure to pay the full amount of a tax, the tax debt shall be paid off in due course at the expense of monetary funds available on bank accounts of the taxpayer in accordance with the procedure provided in Articles 46 and 48 of the present Code, and at the expense of other property of the taxpayer in accordance with the procedure provided in Articles 47 and 48 of the present Code.
 Collection of a tax and/or duty from an organisation shall be performed without recourse to court, unless otherwise provided by the present Code. Collection of a tax and/or duty from a natural person shall be done through a court procedure.
 Collection of a tax from an organisation cannot be performed without recourse to court, if the tax obligation is based on a change introduced by a tax authority into the following:
  1)  legal qualification of deals concluded by taxpayers with third parties;
  2)  legal qualification of the status and nature of the business in which the taxpayer is engaged.
 2. A tax obligation shall be considered fulfilled by the taxpayer from the moment an order to pay the tax in question is presented to the bank, provided that the monetary balance of the taxpayer's account is sufficient to make the payment, and if the payment is made in ready cash - from the moment the tax payment is deposited into a bank or paid to the receiving cashier of a local government authority or a branch office of the State Committee of Telecommunications and Information Technologies of the Russian Federation. The tax shall not be recognized as paid it the taxpayer himself redeems, or the bank returns to the taxpayer, the payment order for the remittance of the tax payment into the budget (extra-budgetary fund), and also if at the time of a taxpayer presenting an order for tax payment this taxpayer has other non-fulfilled claims made on his account, which under the civil legislation of the Russian Federation are executed in a priority order and if the taxpayer has not sufficient monetary funds on the account to satisfy all claims.
 The duty of tax payment shall also be deemed to be discharged after the tax body or a court of law has passed a decision on the offset of excessively paid or excessively recovered tax amounts in the order established by Article 78 of this Code.
 If the responsibility of assessing tax and withholding it is imposed, in accordance with the provisions of this Code, on the tax agent, then the tax obligation of the taxpayer shall be considered fulfilled from the moment taxes were withheld by the tax agent.
 3. The obligation to pay taxes/duties shall be executed in the currency of the Russian Federation. Foreign organisations, and also natural persons who are not tax residents of the Russian Federation may discharge the duty of tax payment in foreign currency. The tax payment may be made in foreign currency also in other cases provided for by federal laws.
 4. Failure to fulfill an obligation to pay taxes shall constitute grounds for applying measures of enforced fulfillment of the tax obligation provided in the present Code.
 5. The rules of this Article shall also apply to fees.

Article 46. Collection of Taxes, Duties, and Penalty Interest from Bank Accounts of Institutional Taxpayers (Payers of Fees) or Institutional Tax Agents


 1. In the case of failure to pay or failure to pay the full amount of tax in the established time frame, the tax obligation shall be executed by enforced collection actions from the taxpayer's or tax agent's bank account.
 2. Collection of a tax shall be performed on the strength of a decision of the tax authority (hereinafter referred to as a decision on collection) by forwarding a cash collection order to the bank of the taxpayer or tax agent, ordering the bank to withdraw monetary funds from the accounts of a taxpayer/tax agent and remit the required amount to the corresponding budgets and (or) extrabudgetary funds.
 3. A decision on recovery shall be taken after the expiry of the period fixed for the discharge of the duty of tax payment, but not later than 60 days after the expiry of the term of the execution of the claim for tax payment. A decision to collect taxes made after the expiration of the indicated limit shall be ineffective and shall not be subject to fulfillment. Should this be the case, the tax authority can file a suit with a court for collection of the tax debt from the taxpayer or tax agent.
 The taxpayer (tax agent) shall be notified of the decision to collect the tax not later than five days after the decision on collection of the required amount of cash was made.
 4. A cash collection order (instruction) to the bank to remit the tax to the corresponding budget and (or) extrabudgetary fund shall be forwarded to the bank where the taxpayer (payer, tax agent) has its accounts and shall be subject to unconditional fulfillment by the bank within the order of priority established by civil legislation of the Russian Federation.
 5. A cash collection order (instruction) of the tax authority to remit a tax shall indicate those accounts of the taxpayer (or tax agent) from which the tax is to be remitted, and the amount to be remitted.
 Taxes may be collected from rouble and (or) foreign exchange accounts of a taxpayer (tax agent) with the exception of loan and budget accounts.
 Collection of taxes from foreign exchange accounts of a taxpayer (tax agent) shall be performed in the amount equivalent to the amount payable in roubles at the rate of the Central Bank of the Russian Federation on the date of the sale of foreign currency. When taxes are collected from foreign exchange accounts, the head of the tax authority (or his deputy) shall forward to the bank, along with the cash collection order, an order to sell the hard currency of the taxpayer (tax agent) not later than the following day.
 A tax shall not be collected from taxpayer's or tax agent's deposit account unless the term of the deposit agreement has expired. Provided there is a deposit agreement between a taxpayer (tax agent) and the bank, the tax authority body shall have the right to issue an order (instruction) to the bank to remit funds from the deposit account to a settlement (current) account of the taxpayer (tax agent) upon the expiration of the deposit agreement, if the order (instruction) of the tax authority to the bank to remit the tax has not been fulfilled by that time.
 6. An order (instruction) of the tax authority to remit a tax shall be executed by the bank not later than within one business day after the day when such order (instruction) was received by the credit organisation if the collection of tax is done from rouble accounts, or not later than two business days if the tax is collected from foreign exchange accounts, since this does not violate the order of sequence of payments, established by the civil legislation of the Russian Federation.
 Should the balance on the accounts of a taxpayer or tax agent as of the day when the credit organisation received an order (instruction) from the tax authority to remit a tax be insufficient to pay off the tax debt or nil, the order shall be executed as money arrives on such accounts not later than one business day after each such arrival into rouble accounts, and not later than two business days after each such arrival into hard currency accounts, inasmuch as this procedure is not inconsistent with the order of priority of payments as established by the civil legislation of the Russian Federation.
 7. Should the balance on the accounts of a taxpayer (tax agent) be insufficient or nil or in the absence of information about the accounts of a taxpayer or a tax agent, the tax authority shall have the right to collect the tax liability at the expense of other property of the taxpayer or tax agent in accordance with the procedure set out in Article 47 of this Code.
 8. In collecting a tax, a tax authority can resort to suspension of bank accounts of a taxpayer (tax agent) in accordance with the procedure and on the terms established by Article 76 of this Code.
 9. The provisions contained in this Article shall also be applicable to collection of penalty interest for untimely payment of taxes/fees.
 10. The rules provided in this Article shall also be applicable for collecting a fee.

Article 47. Collection of Taxes at the Expense of Property of Institutional Taxpayers or Institutional Tax Agents


 1. In the cases stated in Item 7 of Article 46 of this Code, the tax authority can take the property (including ready cash) of an institutional taxpayer or institutional tax agent to satisfy a tax debt within the limits of the amounts indicated in the demand for payment of taxes adjusted for the amounts already levied in accordance with Article 46 of the present Code.
 Collection of a tax or fee at the expense of property of an institutional taxpayer (institutional tax agent) shall be performed on the strength of a decision made by the head of the tax authority (his deputy) by forwarding a ruling to the marshal of the court in the district where the taxpayer (tax agent) is located to be executed in accordance with the procedure provided by Federal Law on Executive Procedure with due account of the details envisaged by this Article.
 2. The ruling to collect taxes at the expense of property of an institutional taxpayer or institutional tax agent shall contain:
  -  full name of the official and the name of the tax authority that issued the said decision;
  -  the date and reference number of the resolution of the head of the tax authority (or his deputy) to collect taxes at the expense of taxpayer's (tax agent's) property;
  -  the name and address of the institutional taxpayer or institutional tax agent whose property is being levied;
  -  excerpt from the resolution of the head of the tax authority (or his deputy) to collect taxes at the expense of taxpayer's (tax agent's) property;
  -  the effective date the resolution of the head of the tax authority (or his deputy) to collect taxes at the expense of institutional taxpayer's or institutional tax agent's property;
  -  the date of the above indicated ruling
 The ruling shall be signed by the head of the tax authority (or his deputy) and stamped with the stamp of the tax authority.
 3. The collection actions shall be performed, and the orders contained in the ruling executed, by the court marshal within two months after the receipt of the ruling.
 4. Collection of taxes at the expense of property of an institutional taxpayer or an institutional tax agent shall be performed in the following sequence:
  -  ready cash;
  -  assets which are not immediately involved in manufacturing products (goods), particularly, securities, foreign exchange valuables, equipment, non-production premises, automobiles, items of interior design of offices;
  -  finished products (goods), as well as other material valuables which are not involved and (or) not intended for direct involvement in production;
  -  raw materials and supplies intended for direct involvement in production, as well as machinery, equipment, buildings, structures and other fixed assets;
  -  assets transferred under lease, loan, rental or other agreements to other persons (enterprises, organisations or natural persons), if such agreements have been terminated or recognized ineffective in accordance with the established procedure in order to secure the fulfillment of a tax obligation;
  -  other assets.
 5. If taxes as collected at the expense of property of an institutional taxpayer or institutional tax agent, the tax obligation shall be considered fulfilled from the moment the said property is sold and the tax debt of the institutional taxpayer or institutional tax agent is paid off from the proceeds from sale.
 6. Tax officials shall not have the right to purchase the property of a institutional taxpayer or institutional tax agent that is sold in execution of a decision to collect the tax debt at the expense of the property of the taxpayer or tax agent.
 7. The provisions provided for by this Article also apply in case of the exaction of a penalty for the untimely payment of a tax and fee.
 8. The provisions contained in this Article shall also be applicable for collecting a fee at the expense of property of the fee payer.
 9. The provisions provided for by this Article shall also apply in case of the collection of taxes and fees by customs agencies with due regard to the provisions established by the Customs Code of the Russian Federation.

Article 48. Collection of Taxes, Fees or Interest from Property of an Individual Taxpayer or Tax Agent or Natural Person


 1. In the event of non-fulfillment in time of a tax liability by an individual taxpayer or a tax agent - natural person, the tax body (customs agency) may file a complaint in court for collection of a tax from the property (including funds on bank accounts and cash) of the individual taxpayer or individual tax agent within the limits of the amounts specified in the demand to pay tax.
 2. A complaint concerning collection of a tax from the property of an individual taxpayer or a tax agent - natural person shall be filed with the Arbitration Court (regarding the property of a natural person registered as an individual entrepreneur) or with a court of general jurisdiction (regarding the property of individuals other than entrepreneurs).
 3. A complaint concerning collection of a tax from the property of an individual taxpayer or a tax agent - natural person may be filed with an appropriate court by the tax body (customs agency) during six months following the expiration date of the demand to pay the tax.
 4. A complaint concerning collection of a tax from the property of an individual taxpayer or a tax agent (customs agency) - natural person can be accompanied by a petition of the tax body to arrest the property of the respondent as a security of the complaint.
 5. The proceedings in a case concerning collection of tax from the property of an individual taxpayer or an individual tax agent shall be performed in accordance with the Russian legislation on arbitration procedures or the Russian legislation on civil procedures.
 6. Collection of a tax from the property of an individual taxpayer or an individual tax agent on the basis of an effective court decision shall be made in accordance with the Federal Law on Executive Procedure with due account of the details envisaged by this Article.
 7. Collection of a tax from the property of an individual taxpayer or a tax agent - natural person shall be made step by step with regard to the following:
  -  funds on bank accounts;
  -  cash;
  -  property that is not involved in the production process directly, such as securities, foreign currency, non-production premises, cars, pieces of office decoration;
  -  finished products (goods) and other material assets not involved in production and (or) not intended for direct participation in production;
  -  raw materials and materials intended for direct participation in production as well as plant, equipment, buildings, constructions and other fixed assets;
  -  property which was assigned under a contract into possession, use or disposal without transferring the title of ownership to such property if, in order to secure the obligation to pay a tax, such contract was annulled or invalidated in the established procedure;
  -  other property with the exception of personal effects intended for everyday use by the individual or his family in accordance with the legislation of the Russian Federation.
 8. In the event that the tax has been collected from the property of the taxpayer or the tax agent, the obligation to pay the tax and fee shall be deemed fulfilled from the time when such property was sold and the arrears of the taxpayer or the tax agent paid from the proceeds. Interest for untimely remittance of taxes shall not accrue during the period between the time of the property arrest and remittance of the proceeds to the appropriate budgets (off-budget funds).
 9. The incumbents of tax bodies (customs agency) shall not have the right to buy the property of an individual taxpayer or an individual tax agent that is being sold in the process of execution of a court decision on collection a tax from the property of the individual taxpayer or the individual tax agent.
 10. The rules of this Article shall also apply in case of collecting a fee from the property of the taxpayer.
 11. The rules of this Article shall also apply to collection of interest for untimely payment of a tax or fee.

Article 49. Fulfillment of Obligation to Pay Taxes and Fees in the Event of Liquidation


 1. The obligation to pay taxes and fees (interest, fines) of an organisation undergoing liquidation shall be fulfilled by the liquidation commission of such an organisation from the funds of such an organisation, including proceeds from the sale of its assets.
 2. Should the funds of an organisation in liquidation, including proceeds from the sale of its assets for the purpose of fulfilling an obligation to pay taxes and fees, due penalties and fines, be insufficient for full discharge of such obligation, the outstanding debt should be paid by the founders (participants) of this organisation in the procedure and to the extent established by the legislation of the Russian Federation.
 3. The priority of fulfillment of the obligation to pay taxes and fees in case of liquidation of an organisation vis-a-vis settlements with other creditors of such organisation shall be specified by civil law of the Russian Federation.
 4. If an organisation being liquidated has to its credit excessively paid taxes or fees and (or) penalties and fines, th said sums of money shall be offset by a tax body on account of the repayment of the debts of the liquidated organisation for taxes and fees (penalties and fines) in the order prescribed by Chapter 12 of this Code within one month of the day of filing of the application by the taxpaying organisation.
 The amount of the excessively paid tax and fees (penalties and fines) subject to offset shall be distributed among the budgets and/or extra-budgetary funds in proportion to the total amounts of tax and due (penalty and fine) indebtedness to the respective budgets and/or extra-budgetary funds.
 If the organisation being liquidated has no indebtedness for the discharge of the duty of paying taxes and fees, and also of paying penalties and fines, the amount of the taxes and fees (penalties and fines), excessively paid by this organisation shall be repaid to this organisation within one month of the day of filing of the application by the taxpaying organisation.
 If the organisation being liquidated has to its credit sums of the excessively collected taxes and fees, and also penalties and fines, the said sums of money shall be repaid to the taxpaying organisation in the order prescribed by Chapter 12 of this Code within one month of the day of filing of the application by the taxpaying organisation.
 5. The provisions envisaged by the present article shall also be applicable in the event of payment of taxes and fees in connection with the movement of goods across the customs border.

Article 50. Fulfillment of Obligations to Pay Taxes and Fees in the Event of Re-Organization of a Legal Entity


 1. Obligations to pay taxes and fees of a re-organized legal entity shall be fulfilled by its successor (successors) in accordance with the procedure set out in this Article.
 2. Fulfillment of an obligation to pay taxes and fees of a reorganized legal entity shall be the responsibility of its successor (successors) irrespective of whether or not the successor (successors) were aware before the reorganisation was completed of facts and (or) circumstances of failure to fulfill or improper fulfillment of an obligation to pay taxes and fees by the re-organized legal entity. In this case the legal successor (legal successors) shall pay all the penalties due to the liabilities which have passed to him.
 The successor(s) to a reorganized legal entity shall also be liable for all the fines owed by the latter for tax offenses committed prior to completion of the reorganisation process. The legal successor (legal successors) of a reorganized legal entity shall enjoy all rights and discharge all duties in the order prescribed for taxpayers by this Code, when he performs the duties of the payment of taxes and fees, vested in it by this Article.
 3. Re-organisation of a legal entity shall not change the deadline for fulfillment of its obligation to pay taxes and fees by a successor (successors) to such legal entity.
 4. In the case of merger of several legal entities, the legal entity resulting from such merger shall be recognized as a successor with respect to the obligation to pay taxes and fees of each of such legal entities.
 5. In the case of accession of one legal entity to another legal entity, the accessing legal entity shall be recognized as a successor to the obligation to pay taxes and fees of the accessed legal entity.
 6. In the case of division of a legal entity into several legal entities, the legal entities resulting from such division shall be recognized as successors with respect to the obligation to pay taxes of the divided organisation.
 7. Should there be several successors, the share of each of them in the fulfillment of the obligation to pay taxes and fees of the re-organized legal entity shall be determined in accordance with the procedure envisaged by civil legislation.
 If the division balance sheet does not make it possible to determine the share of a successor in the reorganized legal entity, or rule out the possibility of complete fulfillment of an obligation to pay taxes and fees by any one of the successors, or if such re-organisation was aimed at failure to fulfill the obligations to pay taxes then, pursuant to a court decision, the newly emerged legal entities may be liable jointly and severally for fulfillment of the obligation to pay taxes of the reorganized legal entity.
 8. In the case of a separation from a legal entity, no succession to the re-organized legal entity with respect to its obligation to pay taxes and fees shall arise. If as a result of separation from the legal entity of one or more legal entities the taxpayer or payer of fees cannot fulfill the obligation to pay taxes and fees in full, then, pursuant to a court decision, the separated legal entities may jointly and severally fulfill the obligation to pay taxes.
 9. In the event of re-organisation of one legal entity into a new one, the legal entity resulting from such re-organisation shall be recognized as a successor to the obligation to pay taxes of the re-organized legal entity.
 10. The amount of a tax excessively paid by a legal entity before its re-organisation shall be offset against the fulfillment by a successor (successors) to such legal entity of obligation to pay other taxes, interest and penalties for a tax offense of the re-organized legal entity. Such offset shall be performed by a tax body or a customs body independently in accordance with the procedure set out in Chapter 12 of this Code with due account for the details provided for in this Article and not later than 30 days after the day when such re-organisation was completed.
 The amount of excessively paid tax to be offset against the outstanding liability of a re-organized legal entity with respect to other taxes, penalties and fines shall be distributed among budgets and (or) extra-budgetary funds in proportion to the total amounts of outstanding liabilities with respect to other taxes of such legal entity vis-a-vis the corresponding budgets and (or) extra-budgetary funds.
 If the reorganized legal entity has no debts for the duty of tax payment, and also of the payment of penalties and fines, the amount of excessively paid tax (penalty, fine) by this legal entity shall be repaid to its legal successor (legal successors) within one month of the day the legal successor (legal successors) files an application in the order established by Chapter 12 of this Code. In this case the amount of the tax (penalty, fine) paid excessively by the legal entity before its reorganisation shall be repaid to the legal successor (legal successors) of the reorganized legal entity in accordance with the share of each legal successor, which is assessed on the basis of the dividing balance.
 If the reorganized legal entity has to its credit excessively collected taxes, and also penalties and fines, the said amounts shall be repaid to its legal successor or legal successors in the procedure prescribed by Chapter 12 of this Code within one month of the day the legal successor or successors files an application. The amount of the tax (penalty, fine) of the legal entity excessively collected before the reorganisation shall be returned to the legal successor or successors of the reorganized legal entity in accordance with the share of each legal successor, which is assessed on the basis of the dividing balance.
 11. The rules provided for in this Article shall also be applicable to fulfillment of obligations with respect to the fee payable as a legal entity is reorganized.
 12. The rules stipulated by this Article shall also apply when it is necessary to determine a legal successor or successors of a foreign organisation reorganized in keeping with the legislation of a foreign state.
 13. The provisions envisaged by the present article shall also be applicable in the event of payment of taxes and fees in connection with the movement of goods across the customs border.

Article 51. Fulfillment of Obligations to Pay Taxes and Fees of a Missing or Disabled Natural Person


 1. The obligation to pay taxes and fees of a natural person recognized as missing by court shall be fulfilled by a person authorized by a body of trusteeship and guardianship.
 The person authorized by a body of trusteeship and guardianship shall pay the entire amount of taxes and fees unpaid by the taxpayer recognized missing without interest accruing, as well as interest and penalties due from the taxpayer as of the date when he was recognized missing. Such amounts shall be paid from the funds of the natural person recognized missing.
 2. The duty of payment of taxes and fees by a natural person who is recognized by a court of law as legally incompetent shall be discharged by his guardian at the expense of the monetary funds of this legally incompetent person. The guardian of the natural person recognized by a court of law as legally incompetent shall be obliged to pay all the amount of taxes and fees unpaid by the taxpayer or the payer of the duty, and also the due penalties and fines as on the day when the person was acknowledged as legally incompetent.
 3. Fulfillment of the obligation to pay taxes and fees of natural persons recognized missing or incapable, as well as payment of interest and penalties due from them, shall be stopped by the appropriate tax body if such natural persons have insufficient funds (no funds) for fulfillment of these obligations.
 In the case of the absence of a decision passed in the established procedure with regard to the revocation of the decision on recognizing the natural person missing or incapable, the previously stopped fulfillment of the obligation to pay taxes and fees shall be resumed.
 4. Persons vested under this Article with the duty of the payment of taxes and fees by natural persons, recognized as missing or legally incompetent, shall enjoy all rights and perform all the duties in the order prescribed by this Code for the taxpayers and payers of fees with an eye to the special features stipulated by this Article. When the said persons discharge the duties vested by this Article and are brought to account for the commission of tax offences they shall not have the right to pay the fines stipulated by this Code at the expense of the person recognized as missing or legally incompetent.

Article 52. Tax Assessment Procedure


 The taxpayer himself shall assess the amount of tax due for the tax period on the basis of the tax base, tax rate and tax benefits.
 In certain cases envisaged by the legislation of the Russian Federation on taxes and fees, a tax body or a tax agent may be charged with the duty to assess the amount of tax. In these cases, prior to 30 days before the maturity of payment, the tax body shall send a tax notice to the respective taxpayer. This notice shall indicate the amount of the tax subject to payment, the calculation of the tax base, and also the time of tax payment. The form of tax notice shall be established by the Ministry of Taxation of the Russian Federation. A tax notice may be handed over to the manager of an organisation (its lawful or authorized representative) or a natural person (his legal or authorized representative) against a receipt or in any other way that confirms the fact and date of its reception. When said persons evade a tax notice, the latter shall be sent by registered mail. A tax notice shall be deemed to be received upon the expiry of 6 days from the date of sending a registered letter.

Article 53. Tax Base and Tax Rates


 1. A tax base represents a value, physical or other parameter of a taxable item. A tax rate represents the amount of tax levied on a unit of measurement of a tax base. A tax base and the procedure for determining it, as well as tax rates with respect to federal taxes shall be established by this Code.
 In cases provided for in this Code, federal tax rates may be established by the Government of the Russian Federation in the procedure and amounts specified by this Code.
 2. The tax base and the procedure for determining it with regard to regional and local taxes shall be established by this Code. Tax rates for regional and local taxes shall be established by laws of the member territories of the Russian Federation, regulations of local governments within the limits established by this Code.

Article 54. General Issues of Tax Base Assessment


 1. Taxpayer organisations shall assess the tax base according to the results of each tax period on the basis of the data in the accounting books and (or) other documented data concerning the items subject to taxation or associated with taxation.
 If mistakes (distortions) in tax base assessment made in the previous tax (reporting) periods are revealed in the current (reporting) tax period, the tax liabilities shall be reassessed for the period when such mistakes were made. If it impossible to determine the specific period, then the tax liabilities of the reporting period when the mistakes (distortions) were revealed shall be corrected.
 2. Individual entrepreneurs shall assess the tax base on the results of each tax period on the basis of profit and loss and business operations accounting in the procedure determined by the Ministry of Finance of the Russian Federation and the Ministry of Taxation of the Russian Federation.
 3. Other individual taxpayers shall assess the tax base on the basis of the data on income subject to taxation obtained in the qualifying cases from organisations as well as the data of their own records of taxable income kept in any form.

Article 55. Tax Period


 1. A tax period shall be a year or any other period of time with regard to a taxpayer's liabilities for individual taxes after the end of which the tax base shall be determined and the due amount of tax assessed. The tax period may consist of one or several reporting periods that are the total of which advance payments are made.
 2. If an organisation was established after the beginning of a calendar year, the first tax period for such organisation shall be the time period from the date of establishment to the end of that year. The date of establishment of the organisation shall be the date of state registration of such organisation.
 If an organisation was established between December 1 and December 31, the first tax period for such organisation shall be the time period between the date of its establishment and the end of the year following the year of its establishment.
 3. If an organisation was liquidated (reorganized) before the end of a calendar year, the last tax period for such organisation shall be the time period between the beginning of that year and the date when the liquidation (reorganisation) was completed.
 If an organisation established after the beginning of a calendar year was liquidated (reorganized) before the end of this year, its tax period shall be the period of time between the date of its establishment and the date of liquidation (reorganisation).
 If an organisation was established during the period of time between December 1 and December 31 and liquidated (reorganized) before the end of the calendar year following the year of its establishment, its tax period shall be the period of time between the date of establishment and the date of liquidation (reorganisation).
 The rules set out in this part shall not apply to organisations from which one or several organisations are separated, or which access one or several organisations.
 4. The rules set out in parts 1-3 of this Article shall not apply to those taxes and fees for which the tax period is established for a calendar month or quarter. In such cases, when an organisations is established, liquidated, reorganized, individual tax periods shall be changed with approval of the tax body at the place of registration of the taxpayer.
 5. If property subject to taxation was purchased, sold (alienated or destroyed) after the beginning of a calendar year, the tax period for such property for the purpose of the tax on such property in the given calendar year shall be defined as the time period during which the property was actually owned by the taxpayer.

Article 56. Establishment and Use of Benefits Regarding Taxes and Fees


 1. Benefits with regard to taxes and fees shall be construed as privileges granted to individual categories of taxpayers and payers of fees and envisaged by the tax and fee legislation as compared with other taxpayers and payers of fees; such privilege includes the possibility not to pay a tax or a fee or to pay a smaller amount thereof.
 Norms of law on taxes and fees which define grounds, procedure for and terms of application of benefits with regard to taxes and fees shall not be of an individual nature.
 2. A taxpayer may refuse to use a benefit, or stop using it for one or more tax periods, unless otherwise provided by this Code.

Article 57. Deadlines for Paying Taxes and Fees


 1. Deadlines for paying taxes and fees shall be established for each tax and fee. Any change in the established deadline for paying a tax or a fee shall be allowed only as provided in this Code.
 2. When a tax or fee is paid after the expiration of the established deadline, the taxpayer or the payer of a fee shall be subject to payment of interest in the manner and under the terms as provided in this Code.
 3. Payment deadlines for taxes and fees shall be defined as a calendar date or a period of time in years, quarters, months, weeks and days, and also as a reference to an event which is to take place, or an action which is to be committed. The deadlines for performance of actions by participants of tax relations shall be established by this Code as applicable to each such action.
 4. When the tax base is calculated by a tax body, the duty of tax payment shall arise after the reception of a tax notice".

Article 58. Procedure for Paying Taxes and Fees


 1. Taxes shall be paid by making a lump sum payment of the entire amount of a tax of a fee, or in any other form provided for in this Code and other legislative acts applicable to taxes and fees.
 2. The amount of tax subject to payment shall be paid (transferred) by a taxpayer or a tax agent within the fixed periods of time.
 3. Taxes and fees shall be paid in cash or in a non-cash form.
 In the absence of a bank, the taxpayer or a tax agent being natural persons may pay taxes and fees through the cash office of a village or town body of local self-government or through a communications entity of the State Committee of Tele-Communications and Information Technologies of the Russian Federation.
 4. A specific procedure for paying a tax or a fee shall be established for each tax or a fee according to this Article.
 The procedure for and terms of paying federal taxes and fees shall be established by this Code.
 The procedure for and terms of paying regional and local taxes and fees shall be established accordingly by the applicable laws of the subjects of the Russian Federation and regulatory legal acts of the representative bodies of local self-governments in accordance with this Code.
 5. The rules of this Article shall also be applicable to payment of fees.

Article 59. Write-off of Bad Debts on Taxes and Fees


 1. Arrears of taxpayers, payers of fees, tax agents and other obligated persons, o collection f which has proved to be impossible due to economic, social or legal reasons shall be recognized as bad debts and written off in the procedure established:
  -  for federal taxes and fees - by the Government of the Russian Federation;
  -  for regional and local taxes and fees - by the executive bodies of the subjects of the Russian Federation and those of local government, accordingly.
 2. The rules provided for by Item 1 of this Article shall also apply when bad debts for penalties are written off.

Article 60. Obligations of Banks on the Execution of Orders to Remit Taxes and Fees, and Decisions to Collect Taxes and Fees


 1. Banks shall be obliged to execute orders of taxpayers or tax agents to remit taxes (hereinafter - tax remittance orders) to respective budgets (off budget funds) as well as decisions of tax bodies to collect taxes or fees at the expense of monetary funds of the taxpayer or a tax agent in the priority procedure established by civil legislation.
 2. The order to remit a tax or the decision to collect a tax shall be executed by the bank within one operational day from the receipt of such order or decision unless otherwise is provided by this Code. No service fee shall be charged for such operations.
 3. Provided there are monetary balances on the account of a taxpayer or tax agent, banks shall not have the right to delay the execution of orders to remit tax amounts or decisions to collect taxes to the corresponding budgets (off budget funds).
 4. Banks shall be held liable for a failure to perform or undue performance of the obligations stipulated in this Article as per this Code.
 The application of measures of responsibility shall not release the bank of the duty of transferring the amount of the tax to budgets (extra-budgetary funds) and of paying a corresponding penalty. In the case of the bank's default on the said duty within the fixed time, this bank shall be liable to measures of recovery of the non-transferred sums of the tax or the due and the corresponding penalties at the expense of pecuniary means in an order similar to that stipulated by Article 46 of this Code. Measures of recovery of such sums of tax or duty at the expense of other assets shall be applied through legal proceedings.
 Repeated failure to perform the said obligations during one calendar year shall provide grounds for a tax service body to file a request with the Central Bank of the Russian Federation that the banking license be invalidated.
 5. The rules of this Article shall also be apply to banks' obligations with respect to remittance orders for fees and decisions to collect fees.

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