Tax Code Of The Russian FederationPART TWO NO. 117-FZ OF AUGUST 5, 2000(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) Adopted by the State Duma on July 19, 2000 Approved by the Federation Council on July 26, 2000
Chapter 25. Tax on Organisations' Profit
Article 246. Tax PayersRecognised as the taxpayers of the tax on the profit of organisations (hereinafter in the present Chapter 'the taxpayers') shall be: - Russian organisations; - foreign organisations carrying out their activity in the Russian Federation through their permanent representations and (or) receiving incomes from sources situated in the Russian Federation. Article 247. Object of TaxationSeen as an object of taxation for the tax on the profit of organisations (hereinafter in this Chapter 'the tax') shall be profit derived by the taxpayer. Recognised as profit for the purposes of the present Chapter shall be: 1) for Russian organisations - derived incomes, reduced by the amount of the effected expenditures which are defined in conformity with the present Chapter; 2) for foreign organisations performing an activity in the Russian Federation through permanent representations incomes derived through these permanent representations, reduced by the amount of the outlays made by these permanent representations which are defined in conformity with this Chapter; 3) for other foreign organisations - incomes derived from sources situated in the Russian Federation. The incomes of the said taxpayers shall be determined in conformity with Article 309 of the present Code. Article 248. Procedure for Defining Incomes. Classification of Incomes1. For the purposes of the present Chapter, to incomes shall be referred: 1) the incomes derived from the sale of commodities (works, services) and of the rights of property (hereinafter, the incomes from sale); For the purposes of this Article goods shall be defined in compliance with Item 3 of Article 38 of this Code; 2) the extra-sale incomes. When defining the incomes, from the latter shall be excluded the amounts of the taxes presented in conformity with this Code by the tax payer to the buyer (to the acquirer) of commodities (works, services or property rights). The incomes shall be defined on the basis of the initial documents and of tax recording documents. The incomes from sale shall be defined in the order established by Article 249 of the present Code, with account for the provisions of the present Chapter. The extra-sale incomes shall be defined in the order established by Article 250 of the present Code, with account for the provisions of this Chapter. 2. For the purposes of the present Chapter, the property (works, services) or the rights of property shall be seen as received free of charge, if the receipt of this property (works, services) or of the rights of property is not involved in the emergence of the receiver's duty to pass on the property (rights of property) to the person who is handing them over (to perform certain work for the handing over person or to render a service to the handing over person). 3. Incomes of a taxpayer expressed in foreign currency shall be recorded together with the incomes expressed in roubles. Incomes of a taxpayer expressed in conventional units shall be recorded together with the incomes expressed in roubles. Conversion of said incomes shall be effected by a taxpayer depending on the method of recognizing incomes chosen by him in his accounting policy in compliance with Articles 271 and 273 of this Code. For the purposes of this Chapter, the amounts shown in the composition of a taxpayer's income shall not be subject to a repeated inclusion into the composition of his incomes. Article 249. Incomes from Sale1. Recognised as the incomes from sale for the purposes of this Chapter shall be earnings derived from the sale of commodities (works, services) both of own manufacture and of those acquired before, as well as the earnings from the sale of property. 2. The earnings from sale shall be defined proceeding from all the receipts connected with settlements for the sold commodities (works, services) or for the rights of property expressed in the form of money and (or) in kind. Depending on the method of recognizing receipts and expenditures chosen by a taxpayer, proceeds connected with settlements for sold goods (works, services) or the rights of property shall be recognized for the purposes of this Article in compliance with Article 271 and 273 of this Code. 3. The specifics in defining the incomes from sale for the individual categories of the taxpayers, or the incomes from sale derived in connection with particular circumstances shall be established by the provisions of the present Chapter. Article 250. Extra-Sale IncomesFor the purposes of this Chapter, recognised as extra-sale incomes shall be the incomes not mentioned in Article 249 of the present Code. In particular, seen as the extra-sale incomes of the taxpayers shall be incomes derived: 1) from share participation in other organisations; 2) from the positive (negative) difference of exchange rates arising when the rate of sale (purchase) of foreign currency is higher (lower) than the official exchange rate of foreign currency established by the Central Bank of Russia on the date of transfer of ownership of the foreign currency ( the specifics of defining the banks' incomes from these transactions are established by Article 290 of this Code); 3) in the form of fines, penalties and (or)other sanctions acknowledged by debtors and subject to payment by debtors on the basis of an effective court decision, as well as of the sums of compensation for losses or for damage; 4) from letting the property for rent (into sub-rent), where such incomes are not determined by a taxpayer in the procedure established by Article 249 of this Code; 5) from giving over to use the rights to the results of intellectual activity and to the means of individualisation equated to them (in particular, from giving over to use the rights arising from patents for inventions, industrial samples and other kinds of intellectual property), where such incomes are not determined by a taxpayer in the procedure established by Article 249 of this Code; 6) in the form of interest received under contracts of borrowing, credit, bank account, bank deposit, as well as on securities and other debt liabilities (the specifics of defining the banks' incomes in the form of interest are established by Article 290 of the present Code); 7) in the form of the sums of replenished reserves, the outlays on whose formation were accepted in the composition of the outlays in the order and on the terms established by Articles 266, 267, 292, 294, 300 324 and 324.1 of the present Code; 8) in the form of the gratuitously received property (works, services) or of the rights of property, with the exception of the cases pointed out in Article 251 of the present Code. When receiving property (works, services) free of charge, incomes shall be estimated proceeding from the market prices defined subject to the provisions of Article 40 of this Code, but no less than the residual cost determined in compliance with this Chapter, as regards depreciated property, and no less than the cost of production (acquisition), as regards other property (carried out works, rendered services). Information on the prices shall be confirmed by the taxpayer receiving the property (works, services), either in documented form or by making an independent estimate; 9) in the form of income distributed in favour of the taxpayer, if he is a member of a simple partnership, in accordance with the order envisaged by Article 278 of the present Code. 10) in the form of the income of the past years exposed in the accounting (tax) period; 11) in the form of the positive exchange rate difference arising from the revaluation of the property in the form of currency values and of claims (liabilities) whose cost is expressed in foreign currency, including those on the currency accounts in banks which is performed in connection with a change in the official exchange rate of the foreign currency to the rouble of the Russian Federation fixed by the Central Bank of the Russian Federation; For the purposes of this Chapter positive difference of exchange rates shall mean the difference of exchange rates arising in the event of revaluation of property in the form of currency values and claims shown in foreign currency, or in the event of marking down liabilities shown in foreign currency; 11.1) in the form of the sum difference a taxpayer has, when the sum of arising claims and liabilities calculated on the basis of the exchange rate of conventional monetary units, established by agreement of the parties on the date of sale (posting) of goods (works, services) and property rights, does not comply with the actually received (paid) amount in roubles; 12) in the form of fixed assets and intangible assets received free of charge in compliance with international treaties of the Russian Federation or with the laws of the Russian Federation by nuclear power plants for enhancing their safety, which are not used for production purposes; 13) in the form of the cost of received materials or other property during their pulling down or dismantling, when fixed assets are put out of operation in cases of their liquidation (with the exception of the cases envisaged by Subitem 19 of Item 1 of Article 251 of the present Code); 14) in the form of the property (monetary funds included), works and services, utilised other than in accordance with their intention, which were received in the framework of charitable activity (including charitable assistance and donations), of purpose-oriented receipts and purpose-oriented financing, with the exception of budgetary funds. With respect to the budgetary funds used other than for the target purposes, the norms of the budgetary legislation of the Russian Federation shall be applied. The taxpayers who have received property (monetary funds included), works or services in the framework of charitable activity, or purpose-oriented incomings, or purpose-oriented financing, shall submit to the tax bodies at the place of their recording, after the end of the tax period, a report on the purpose-oriented utilisation of the received funds, which shall be compiled in accordance with the form approved by the Ministry of Taxation of the Russian Federation. 15) in the form of received purposive funds intended for the formation of reserves for development and ensuring the functioning and safety of nuclear power plants, or in the form of monetary assets received by nuclear power plants from said reserves, which have been used for other than the intended purposes; 16) in the form of the sums by which the authorised (summed up) capital (fund) of the organisation was reduced over the accounting (tax) period, if such reduction was effected with a simultaneous refusal of return of the cost of the corresponding part of the contributions (deposits) to the organisation's shareholders (partners) (with the exception of the cases envisaged by Subitem 18 of Item 1 of Article 251 of the present Code); 17) in the form of the return from a non-profit organisation of the earlier made contributions (deposits), if such contributions (deposits) were earlier recorded in the composition of the outlays on the creation of the tax base; 18) in the form of the sums of credit indebtedness (of a liability to the creditors), which is written off in connection with an expiry of the term of legal limitation or on the other grounds, with the exception of the cases envisaged by Subitem 22 of Item 1 of Article 251 of the present Code; 19) in the form of the incomes derived from transactions with the financial instruments of futures deals, taking into account the provisions of Articles 301-305 of this Code; 20) in the form of the cost of the surpluses of the commodity material values and other property, exposed as a result of making an inventory; 21) in the form of the cost of mass media products and books subject to exchange in the event of return or writing off of such products for the reasons provided for by Subitems 43 and 44 of Item 1 of Article 264 of this Code. Article 251. Incomes Not Recorded When Defining the Tax Base1. When defining the tax base, the following incomes shall not be taken into account: 1) in the form of the property and (or) rights of property, works or services received from the other persons as pre-payment for commodities (works, services) by the taxpayers, defining the incomes and outlays in accordance with the method of calculation; 2) in the form of property and (or) the rights of property received in the form of a pawn or of caution money as the security against liabilities; 3) in the form of property, rights of property or non-property rights assessed in cash, which are received in the form of contributions (deposits) to the authorized (pooled) capital (fund) of an organization (including income in the form of an excess of the price of placement of stocks (shares) over their nominal cost (initial amount)); 4) in the form of property and (or) rights of property received within the limits of the initial contribution made by a partner of an economic company or partnership (by his legal successor or heir) when he leaves (withdraws from) the economic company or partnership, or if the property of a liquidated company or partnership is distributed between its participants; 5) in the form of property, rights of property and (or) non-property rights assessed in cash which are received within the limits of the initial contribution made by a participant in a simple partnership contract (joint activity contract) or by his legal successor, in the event of detachment of his share from the property in the joint ownership of the participants of the contract, or in the case of dividing such property; 6) in the form of the funds received as gratuitous aid (assistance) to the Russian Federation in accordance with the procedure laid down by the Federal Law on Gratuitous Aid (Assistance) to the Russian Federation and on the Introduction of Amendments and Addenda into the Individual Legislative Acts of the Russian Federation on Taxes, and on the Establishment of Privileges for Payments into the State Extra-Budgetary Funds in Connection with Rendering Gratuitous Aid (Assistance) to the Russian Federation; 7) in the form of the fixed assets and the non-material assets, received free of charge in conformity with the international treaties of the Russian Federation by the nuclear power plants for raising their safety, which have been used for production purposes; 8) in the form of the property received by budgetary organizations by decision of the executive power bodies of all levels; 9) in the form of the funds which have come in to a broker, agent and (or) other attorney under a commission contract, an agency agreement and (or) other similar agreement, as well as on account of compensation for the expenses borne by the broker, agent or other attorney instead of a client, principal and (or) other grantor where such expenses are not subject to inclusion into the expenses of the broker, agent and (or) other attorney under contracts made. A broker's fee, commission fee or any other similar remuneration shall not pertain to said incomes; 10) in the form of the funds and other property received under contracts of credit and borrowing (and other similar funds or other property irrespective of the form of legalizing the borrowings, including debt securities), as well as in the form of funds and other property obtained from the settlements of such borrowings; 11) in the form of the property received by a Russian organization free of charge: - from an organization, if the authorized (pooled) capital (fund) of the receiving party consists by over 50 per cent of the deposit of the handing over organization; - from an organization, if the authorized (pooled) capital (fund) of the handing over party consists by over 50 per cent of the deposit of the receiving organization; - from a natural person, if the authorized (pooled) capital (fund) of the receiving party consists by over 50 per cent of the deposit (share) of this natural person. In this case, the received property shall not be recognized as income for the purposes of taxation, if only in the course of one year, as of the date of its receipt said property (safe for monetary funds) is not handed over to third persons; 12) in the form of the funds derived in accordance with the demands of Articles 78, 79, 176 and 203 of the present Code from the budget (extra-budgetary fund); 13) in the form of the sums of guarantee contributions into special funds set up in conformity with the legislation of the Russian Federation, which are intended for reducing the risks of non-execution of liabilities under deals, which are obtained in the performance of the clearing activity or of an activity aimed at organizing trading in the securities market; 14) in the form of the property received by organizations within the framework of the purposive financing. In this case, the organizations which have received the funds of purposive financing shall be obliged to keep separate records for the incomes (expenditures) received (made) within the framework of the target financing. If no such recording is carried out by the organization which has received the funds under the purposive financing, said funds shall be regarded as those subject to taxation, as of the date of their receipt. To the funds of budgets of all levels and of extra-budgetary funds, allocated to budgetary institutions according the estimate of incomes and outlays of a budgetary institution but not used for the purpose they are intended for within a tax period or used for the purposes other that those they are intended for, there shall apply the rules of budget laws of the Russian Federation. To the funds of purposive financing there shall be referred the property received by the taxpayer and used by him in accordance with the purpose defined by the organization (natural person) which is the source of the purposive financing or by federal laws: - in the form of the funds from the budgets of all levels and from the state extra-budgetary funds allocated to budgetary institutions in accordance with the incomes and the outlays estimate of the budgetary institutions; - in the form of received grants. For the purposes of this Chapter grants shall mean monetary assets and other property, where their transfer (receipt) satisfies the following conditions: grants shall be provided on the gratuitous and irrevocable basis by natural persons, non-profit making organizations, including foreign and international organizations and associations according to the list of such organizations endorsed by the Government of the Russian Federation; grants shall be provided for implementation of specific programs in education, arts, culture, environmental protection, as well as for carrying out specific scientific research; grants shall be provided on the conditions determined by grantors with the obligatory submission of reports by grantees on the purposive use of grants; - in the form of the investments, received when holding investment tenders (auctions) in the order established by the legislation of the Russian Federation; - in the form of the investments received from foreign investors for financing the capital production-intended investments, under the condition that they are used within one calendar year from the moment of their receipt; - in the form of the funds of the share partners and (or) investors accumulated on the accounts of a building organization; - in the form of the funds received by a mutual insurance company from organizations who are members of the mutual insurance company; - in the form of the funds, received from the Russian Fund for Fundamental Studies, from the Russian Fund of Technological Development, from the Russian Humanitarian Scientific Fund, from the Fund for Rendering Assistance to the Development of Small Businesses in the Scientific and Technological Sphere, and from the Fund for the Production of Innovations; in the form of the funds received for the purpose of forming the Russian Technological Development Fund, as well as other branch and inter-branch funds for financing research and development works which are registered in the procedure provided for by the Federal Law on Science and State Scientific Research Policy" in the form of non-profit organizations; - in the form of the funds received by enterprises and organizations, including especially dangerous radioactive and especially dangerous nuclear works and units, from the reserves intended for guaranteeing security of said works and units at all stages of their life cycle and development in conformity with the legislation of the Russian Federation on the use of nuclear power. Said incomes shall be included in the composition of the extra-sale incomes in case the grantee has actually used such funds for other than the intended purposes, or if he has not used them for the intended purpose in the course of one year after the end of the tax period in which they were received; - as the amounts of fees for the provision of aviation navigation services for aircraft flights in the air space of the Russian Federation received by the specifically empowered body charged with civil aviation affairs; in the form of bank insurance contributions to the fund of the insurance of deposits in accordance with the federal law on the insurance of deposits of natural persons in the banks of the Russian Federation; 15) in the form of the cost of the shares additionally received by the shareholder organization which are distributed among the shareholders by the decision of the general meeting in proportion to the number of shares in their ownership, or in the form of the difference between the nominal cost of the new shares received instead of the original ones, and the nominal cost of the shareholder's original shares in the placement of the shares among the shareholders in cases of an augmentation of the authorized capital of a joint-stock company (without changing the share of the shareholder's participation in this joint-stock company); 16) in the form of the positive difference which has emerged as a result of revaluating precious stones in cases of a change of the price lists of the settlement prices for precious stones in the established order; 17) in the form of the sums by which in a report (tax) period an organization's authorized (pooled) capital was reduced in accordance with the demands of the legislation of the Russian Federation; 18) in the form of the cost of the materials and other property, received in dismantling and pulling down of the objects withdrawn from operation in cases of their liquidation, which shall be destroyed in conformity with Article 5 of the Convention on the Prohibition of the Development, Production, Accumulation and Application of Chemical Weapons, as Well as Their Destruction, and with Part Five of the Appendix on Checking the Convention on the Prohibition of the Development, Production, Accumulation and Application of Chemical Weapons, as Well as Their Destruction; 19) in the form of the cost of amelioration and other objects of agricultural use (including intra-economic water supply, gas and electricity supply networks) built at the expense of the budgetary funds received by an agricultural commodity producer; 20) in the form of the property and (or) the rights of property, received by organizations for the state stocks of special (radioactive) raw materials and of fissionable materials of the Russian Federation from transactions with material values from the state stocks of special (radioactive) raw materials and of fissionable materials, aimed at the replenishment and the maintenance of the stocks; 21) in the form of the sums of the taxpayer's credit indebtedness to the budgets of different levels, written off and (or) reduced in some other way in conformity with the legislation of the Russian Federation and (or) by the decision of the Government of the Russian Federation; 22) in the form of equipment, received on a gratuitous basis by state and municipal educational establishments, as well as by non-state educational establishments possessing licenses for the performance of educational activity, for exercising the activities stipulated by their statutes; 23) in the form of the fixed assets received by organizations included into the structure of the Russian Defence Organization for Sports and Technologies (hereinafter referred to in the present Chapter as ROSTO) (if these are handed over between two or more organizations included in the structure of this Organization), used for training citizens in the military-recorded specialities, for carrying out the military-patriotic education of youth, as well as for the development of the aviation, technological and military-applied kinds of sport in conformity with the legislation of the Russian Federation; 24) in the form of the positive difference received from revaluation of securities in accordance with the market cost; 25) in the form of the sums of the replenished reserves against devaluation of securities (with the exception of the reserves whose formation caused the expenses which under Article 300 of this Code previously decreased the tax base). 26) in the form of funds and other property which have been received by unitary enterprises from the owners of property of these enterprises or from the bodies authorized by them; 27) in the form of property (including monetary assets) and (or) property rights which have been received by a religious organization in connection with committing religious ceremonies and rituals and from the sale of religious literature and articles of religious purpose; 28) in the form of the amounts received by universal service operators from the universal service reserve in compliance with the laws of the Russian Federation on communications. 2. The purpose-oriented incomes (with the exception of the target incomes in the form of excisable commodities) shall not be taken into account either, when determining the tax base. To these there shall be referred the target incomes from the budget to the budget receivers and the purpose-oriented receipts for maintaining non-profit organizations and for the performance by these non-profit organizations of their authorized activity, which have arrived gratis from other organizations and (or) from natural persons, and which said receivers have used for the intended purposes. With this, taxpayers who have received said purposive earnings shall be obliged to keep separate records of incomes (expenses) received (made) within the framework of purposive earnings. To the above-mentioned purpose-oriented incomes for the maintenance of non-profit organizations and for the performance by the latter of their authorized activity the following shall be referred: 1) the entrance fees, membership fees and goal-oriented contributions and deductions paid under the laws of the Russian Federation to the public-legal professional associations, built on the principles of obligatory membership, the share participation contributions and the donations recognized as such in conformity with the Civil Code of the Russian Federation; 1.1) targeted payments for forming the Russian Technological Development Fund, as well as other branch and inter-branch funds for financing research and development works which are registered in the procedure provided for by the Federal Law on Science and State Scientific Research Policy" in the form of non-profit organizations; 2) the property handed over to non-profit organizations under a will by way of succession; 3) the sums of financing from the federal budget, from budgets of the subjects of the Russian Federation, from local budgets, or from the budgets of state extra-budgetary funds, allocated for the performance of the authorized activity by non-profit organizations; 4) the funds and other property received within the framework of charitable activity; 5) the joint contribution of the founders of non-state pension funds; 6) pension contributions to non-state pension funds, if these are directed in full to the formation of the pension reserves of the nonstate pension funds; 7) receipts from the owners to the institutions they have established, used for the intended purpose; 8) the deductions of the chambers of solicitors/barristers of Russian regions for the general needs of the Federal Chamber of Solicitors/Barristers at the rates and in the manner determined by the All-Russia Congress of Solicitors/Barristers; the deductions of solicitors/barristers for the general needs of the chamber of solicitors/barristers of the relevant Russian region at the rates and in the manner determined by the annual meeting (conference) of the solicitors/barristers of the chamber of solicitors/barristers of the Russian region, and also for the maintenance of a relevant solicitors'/barristers' study, college of solicitors/barristers or solicitor/barrister bureau; 9) the funds which have come in to trade union organizations in conformity with the collective contracts (agreements) for the trade unions to hold socio-cultural and other events envisaged by their authorized activity; 10) funds used for their intended purpose which are received by the structural organizations of the Russian Defence Organization for Sports and Technologies from the Ministry of Defence of the Russian Federation and (or) from other executive power body under a general contract, as well as the target deductions from the organizations included in the structure of the Russian Defence Organization for Sports and Technologies, used in accordance with the constituent documents thereof for citizens' training in conformity with the legislation of the Russian Federation in the military-recorded specialities, for the militarypatriotic education of the youth and for the development of aviation, technological and military-applied kinds of sport. 11) property (including monetary assets) and (or) property rights which have been received by religious organizations for exercising their authorized activities. Article 252. Outlays. Grouping of the Outlays1. For the purposes of this Chapter, the taxpayer shall reduce the received incomes by the sum of the outlays he has made (with the exception of the outlays indicated in Article 270 of the present Code). Recognised as outlays shall be the justified and Documented expenditures (and in the cases envisaged by Article 265 of the present Code, also the losses), made (incurred) by the taxpayer. Seen as justified outlays shall be the expenditures justified from an economic viewpoint whose evaluation is expressed in monetary form. Seen as documented outlays shall be the outgoings confirmed by the documents which are formalised in conformity with the legislation of the Russian Federation. Recognised as outlays shall be any kind of expenditures, under the condition that they are made for the performance of an activity aimed at deriving an income. 2. Depending on their character, as well as on the conditions necessary for the performance and on the directions of the taxpayer's activity, the outlays shall be subdivided into outlays involved in production and sale, and extra-sales outlays. 3. The specifics in qualifying the outlays recognised for the purposes of taxation, for the individual taxpayers' categories, or the outlays made in connection with special circumstances shall be established by the provisions of this Chapter. 4. If certain expenditures may be referred on equal grounds simultaneously to several groups of outlays, the taxpayer shall have the right to decide on his own to which particular group he refers such outlays. 5. The outlays incurred by a taxpayer which are shown in foreign currency shall be accounted in the aggregate with the outlays shown in roubles. The outlays incurred by a taxpayer which are shown in conventional units shall be accounted in the aggregate with the outlays shown in roubles. Said outlays shall be conversed by a taxpayer depending on the method of recognizing such outlays chosen for his accounting policy for the purposes of taxation in compliance with Articles 272 and 273 of this Code. For the purposes of this Chapter, amounts shown in the composition of taxpayers' expenditures shall not be subject to repeated inclusion in the composition thereof. Article 253. Outlays Involved in Production and Sale1. The outlays involved in production and sale shall incorporate: 1) the outlays connected with the manufacture (output), storage and delivery of commodities, with the performance of works and rendering services, with the acquisition and (or) sale of commodities (works, services and rights of property); 2) the outlays on maintenance and operation, repairs and technical servicing of the fixed assets and of the other property, as well as for maintaining them in good condition (in a fit-for-operation state); 3) the outlays on the development of natural resources; 4) the outlays on scientific research and on research and development works; 5) the outlays on obligatory and voluntary insurance; 6) the other outlays involved in production and (or) sale. 2. The outlays connected with the production and (or) with sale are subdivided into: 1) material outlays; 2) outlays on the remuneration of labour; 3) sums of imposed depreciation charges; 4) other outlays; 3. The specifics in determining the outlays of banks, insurance institutions, non-state pension funds, professional securities marketmakers, consumer cooperation organizations and foreign organizations shall be established subject to the provisions of Articles 291, 292, 294, 296, 297, 299, 300, 307, 308, 309 and 310 of the present Code. Article 254. Material Outlays1. To the material outlays are referred, in particular, the following expenditures of the taxpayer: 1) for the acquisition of raw materials and (or) of other materials utilised in the manufacture of commodities (in the performance of works or in rendering services) and (or) forming their base or comprising a necessary component in the manufacture of commodities (in the performance of works or in rendering services); 2) for the acquisition of materials utilised: - for packing and other kinds of preparing the manufactured and (or) the sold commodities (including pre-sale preparation); - for other production and economic needs (such as staging tests, exerting control, the maintenance and operation of the fixed assets and other similar items; 3) for the acquisition implements, appliances, instruments, apparatuses, laboratory equipment, overalls and other property which are not depreciable property. The cost of such property shall be fully included into the composition of material expenses as it is put into operation; 4) for acquisition of completing parts subject to mounting and (or) semi-products subject to additional processing by a taxpayer; 5) for the acquisition of fuel, water and all kinds of power expended for technological needs, for working out (including by the taxpayer himself for its own production needs) all kinds of energy and for heating the buildings, as well as the outlays on the transformation and transmission of power; 6) for the acquisition of the works and services of production nature performed by the outside organisations or individual businessmen, as well as for carrying out these works (for rendering services) by the taxpayer's internal structural subdivisions. To the works (services) of the production nature shall be referred the performance of the individual operations involved in the output (manufacture) of products, in performing works and rendering services in processing raw materials (materials), the exertion of control over the observation of the started technological processes, the technical servicing of the fixed assets and other similar works. To the works (services) of the production nature shall also be referred the transportation services rendered by the outside organisations (individual businessmen included) and (or) by the structural subdivisions of the taxpayer himself for shipping cargoes inside the organisation, in particular the shifting of raw materials (materials), of implements, parts, ingots and other kinds of cargoes from the basic (central) store-house to the workshops (departments) and the delivery of finished products in accordance with the terms of the contracts (agreements); 7) those involved in the maintenance and utilisation of the nature protection fixed assets and other property (including outlays on the maintenance and running of the purification installations, of ash-catchers, filters and other nature-protection objects, outlays on burying ecologically dangerous waste, those on buying the services of outside organisations involved in the acceptance, storage and destruction of ecologically hazardous waste, in the purification of the discharged waters, payments for the ultimately admissible ejections (dumping) of pollutant substances into the natural environment and the other similar expenses. 2. The cost of the commodity-material values included in the material outlays shall be defined proceeding from the prices of their acquisition (not taking into account taxes, which shall be subject to deduction from, or to the inclusion in, the outlays in conformity with the present Code), including the commission fees paid to intermediary organisations, the import customs duties and collections, the outlays on transportation as well as other expenditures connected with the acquisition of commodity-material values. 3. If the cost of the returnable containers accepted from the deliverer with the commodity-material values is included in the price of these values, from the total sum of the outlays on the acquisition thereof shall be excluded the cost of the returnable containers at the price of their probable use or sale. The cost of the non-returnable containers and packing, accepted from the deliverer with the commodity-material values, shall be included in the sum of the outlays on their acquisition. The containers shall be referred to as either returnable or Non-returnable in accordance with the terms of the agreement (contract) on the acquisition of the commodity-material values in question. 4. Where a taxpayer uses as raw materials, spare parts, completing parts, semi-products and other materials outlays products of his own making, as well as where a taxpayer includes in the composition of material outlays results of his own works and services, said products and results of his own works or services shall be evaluated reasoning from the evaluation of finished products (works, services) in compliance with Article 319 of this Code. 5. The amount of material outlays of the current month shall be decreased by the cost of the stock of inventory holdings transferred for production but not used in production as on the end of the month. Valuation of such inventory holdings should correspond to valuation thereof, when writing them off. 6. The sum of the material outlays shall be reduced by the cost of returnable waste. For the purposes of the present Chapter, seen as returnable waste shall be the residuals of the raw materials (materials), semi-products, heat-carriers and other kinds of material resources which have accumulated in the course of the manufacture of the commodities (of the performance of works or of rendering services) and which have partially lost the consumer properties of the original resources (their chemical or physical properties) and by force of this are utilised with higher outlays (with a lower output of products), or which are not utilised for their direct purpose. Not referred to returnable waste shall be the residuals of the commodity-material values, which are handed over in accordance with the technological process to the other subdivisions as fully valuable raw materials (materials) for the output of the other kind of commodities (works, services), as well as the by-products (associated products) obtained as a result of carrying out the technological process. Returnable waste shall be evaluated in this order: 1) at the reduced price of the original material resource (at the price of the probable utilisation), if these wastes may be used for the basic or auxiliary production but with higher outlays (with a lower output of the finished products); 2) at the price of sale, if these products are sold on the side. 7. For the purposes of taxation, to the material outlays shall be equated: 1) the outlays on the reclamation of the lands and on the other nature-protection measures, unless otherwise established by Article 261 of this Code; 2) the losses from the shortages and (or) spoilage during the storage and the transportation of the commodity-material values within the limit of the norms of natural losses, approved in the order established by the Government of the Russian Federation; 3) the technological losses during production and transportation; 4) the outlays involved in the preparatory mining works in the extraction of minerals, for the operational stripping works in quarries and for cutting works in the underground ore extraction mines within the boundaries of the mining plot, allotted to the ore-mining enterprises. 8. When determining the amount of material expenditures in writing off the raw and other materials utilised in the output (manufacture) of commodities (in the performance of works or in rendering services), in conformity with the accounting policy accepted by the given organisation for the purposes of taxation, one of the following methods for the evaluation of the said raw and other materials shall be applied: - the method of evaluation in accordance with the prime cost of a unit of the stocks; - the method of evaluation in accordance with average cost; - the method of evaluation in accordance with the cost of the acquisitions which are the first chronologically (FIFO); - the method of evaluation in accordance with the cost of the acquisitions which are the last chronologically (LIFO). Article 255. Outlays on the Remuneration of LabourIn the taxpayer's outlays on the remuneration of labour shall be included any calculations for the workers in the form of money and (or) in kind, stimulating the calculations and allowances, the compensatory allowances in connection with the work regime or labour conditions, the bonuses and single-time incentive payments, the outlays involved in the maintenance of these workers stipulated by the rules of the laws of the Russian Federation and the labour agreements (contracts) and (or) in the collective agreements. For the purposes of this Chapter, to the outlays on the remuneration of labour shall be referred, in particular: 1) the sums calculated in accordance with the tariff rates, official salaries, piece-work payment rates, or percentages of the receipts in accordance with the forms and systems of the remuneration of labour accepted in the given taxpayer; 2) the calculations of an incentive kind, including bonuses for high production results, mark-ups to the tariff rates and salaries for the professional skills, for achieving high results in the work and for the other similar indices; 3) the calculations of an incentive and (or) compensatory nature, connected with the work regime and the conditions of labour, including mark-ups to the tariff rates and salaries for the night-time work and for the multi-shift work, for combining trades, for expansion of the serviced zones, for the performance of work under difficult, dangerous and particularly dangerous conditions of labour, for overtime work and work on days off and on holidays, effected in conformity with the legislation of the Russian Federation; 4) the cost of the communal services, meals and products given over to the workers gratis in conformity with the legislation of the Russian Federation, and the cost of the living premises granted to the taxpayer's workers free of charge in conformity with the relevant procedure established by the legislation of the Russian Federation (the sums of monetary compensation for non-granting of living premises, communal and other similar services free of charge); 5) the cost of things issued to workers free of charge in conformity with the legislation of the Russian Federation (including uniforms and outfits) which are left in their personal permanent use (or the sum of the privileges in connection with selling these things at a reduced price); 6) the sum of the average earnings to workers, which are preserved during the time spent in the performance of the state and (or) public duties, and in the other cases stipulated by the legislation of the Russian legislation on labour; 7) the outlays on the remuneration of labour preserved for the workers during time spent on leave, envisaged by the legislation of the Russian Federation, the outlays on the fares of the workers and of the dependents of the workers, to the place of their spending leave on the territory of the Russian Federation and back (including the expenditures on the payment for carrying the luggage of the workers of organisations situated in the areas of the Far North and in the localities equated to them) in accordance with the procedure envisaged by the legislation of the Russian Federation, an additional payment to the underaged for shorter working hours, outlays on the payment for breaks in the work of mothers for feeding their babies, as well as outlays on the remuneration of the time spent in undergoing medical examinations; 8) the monetary compensations for unused leave in compliance with the labour laws of the Russian Federation; 9) the allowances for the workers released in connection with the reorganisation or liquidation of the taxpayer, with the reduction of the labour force or of the number of workers on the taxpayer's staff; 10) the lump-sum awards for a long work record (the mark-ups for a long work record in the particular speciality) in conformity with the legislation of the Russian Federation; 11) the extra payments due to the regional regulation of the remuneration of labour, including allowances in accordance with the regional coefficients and the coefficients for work under hazardous natural-climatic conditions, effected in conformity with the legislation of the Russian Federation; 12) the extra payments envisaged by the legislation of the Russian Federation for an uninterrupted record of work in the regions of the Extreme North and in the localities equated to them, in the areas of the European North and in other regions with hazardous natural-climatic conditions; 13) the outlays on the remuneration of labour preserved in conformity with the legislation of the Russian Federation over the time of educational leave, granted to the taxpayer's workers; 14) the outlays on the remuneration of labour for the time of compelled inactivity or for the time when lower-paid work is performed in the cases envisaged by the legislation of the Russian Federation; 15) the outlays on an additional payment up to the actual earnings in cases of the temporary loss of labour capacity established by the legislation of the Russian Federation; 16) the sums of the employers' payments (contributions) under the obligatory insurance contracts, as well as the sums of the employers' payments (contributions) under the contracts for the voluntary insurance (under contracts of non-state pension security) concluded in favour of workers with insurance organisations (with non-state pension funds) which possess the licences issued in conformity with the legislation of the Russian Federation for carrying out the corresponding kinds of activity in the Russian Federation. In the cases of voluntary insurance (of non-state pension security), the said sums shall be referred to the outlays on the remuneration of labour under the contracts: - of long-term life insurance, if such contracts are concluded for a term of not less than five years and do not envisage insurance payments in the course of these five years, including in the form of rent and (or) of annuities (with the exception of insurance payments envisaged in case of the death of the insured person) in favour of the insured person; - of the pension insurance and (or) of the non-state pension security. In this case, the contracts of the pension insurance and (or) of the non-state pension security shall envisage the payment of pensions (for a life term) only after the insured person has achieved the pension grounds envisaged by the legislation of the Russian Federation which give him the right to assignment of a state pension; - of the voluntary personal insurance of workers, concluded for a term of no less than one year, which envisages coverage by the insurers of the insured workers' medical expenditures; - of the voluntary personal insurance, concluded exclusively against the death of the insured person or against the loss by the insured person of his labour capacity in connection with the discharge of his labour duties. The aggregate sum of the contributions (the payments) of the employers, made under the contracts of the long-term life insurance of workers and (or) of the non-state pension security of workers, shall be recorded for the purposes of taxation in an amount not exceeding 12 per cent from the sum of the outlays on the remuneration of labour. If the essential terms of the contract are changed and (or) if the term of operation of a long-term life insurance contract, of a pension insurance contract and (or) of a contract of the non-state pension security is reduced, or if they are cancelled, the employer's contributions made under such contracts, which have been earlier included into the composition of the outlays, shall be recognised as subject to taxation as from the moment of the change of the essential terms of the said contracts and (or) of the reduction of the term of operation of these contracts or of their cancellation (with the exception of cases of the pre-schedule cancellation of the contract in connection with force majeure circumstances, that is, extraordinary and inadvertent circumstances). Contributions on the contracts of voluntary personal insurance, envisaging the insurer's coverage of the insured workers' medical expenditures, shall be included in the composition of the outlays in an amount not exceeding three per cent of the sum of the outlays on the remuneration of labour. The contributions on the contracts of voluntary personal insurance, concluded exclusively against the death of the insured person or against the loss by the insured worker of his labour capacity in connection with the discharge of his labour duties, shall be included in the composition of the outlays in an amount not exceeding ten thousand roubles a year per one insured worker; When calculating the maximum amount of payments (contributions) under this Subitem, the amount of payments (contributions) provided for by this Subitem shall not be included into the outlays on labour wages. 17) the sums calculated in the amount of one tariff rate or salary (if the work is carried out by the hour), which are envisaged by the collective agreements, for the days spent en route from the place of location of the organisation (from the gathering point) to the place of work and back, envisaged by the work schedule by the hour, as well as for the days of the workers' detainment while en route because of weather conditions; 18) the sums calculated for the performed work to the natural persons attracted for the work for the taxpayer in accordance with special agreements on the supply of the work force with state organisations; 19) In the cases provided for by the laws of the Russian Federation the sums calculated at the principal place of work to the workers, the managers or the specialists of taxpayer during their training away from work in the system of raising the qualifications or of the re-training of the personnel; 20) the outlays on the remuneration of labour of workers who are blood donors for the days of their medical examination, of the blood taking and of the rest, granted after every day after blood taking; 21) the outlays on the remuneration of labour of workers who are not on the taxpaying organisation's staff, for the fulfilment by them of works under the concluded contracts of civil-legal nature (including turnkey contracts), with the exception of the remuneration of labour under contracts of civil-legal nature concluded with individual businessmen; 22) the allowances to servicemen undergoing military service at state unitary enterprises and in the building organisations of the federal executive power bodies in which the legislation of the Russian Federation has envisaged the military service, and to the rank and file servicemen and the commanding staff of the internal affairs bodies, stipulated by the federal laws, by the laws on the status of servicemen and on the institutions and bodies engaged in the execution of criminal punishments in the form of deprivation of freedom; 23) additional payments to invalids, stipulated by the legislation of the Russian Federation; 24) expenditure in the form of allocations to the reserve for forthcoming payment of workers' leaves and (or) to the reserve for paying annual long-service bonuses made in compliance with Article 324.1 of this Code. 25) other kinds of outlays made in the worker's favour, envisaged by the labour agreement and (or) by collective agreement. Article 256. Depreciated Property1. Recognised as depreciated property for the purposes of this Chapter shall be property, (if not otherwise provided for by this Chapter), the results of intellectual activity and the other objects of intellectual property belonging to the taxpayer by right of ownership and used by him for the purpose of deriving an income whose amount is amortised by imposing depreciation charges. Recognized as depreciable property there shall be the property with the term of beneficial use over 12 months and with the initial cost thereof over 10 000 roubles. The depreciated property received by a unitary enterprise from the owner of the property of the unitary enterprise into operative management or into economic management, shall be subject to depreciation at the given unitary enterprise in accordance with the procedure established by the present Chapter. 2. Not subject to depreciation shall be the land and the other nature utilisation objects (water, mineral wealth and other natural resources), and also the material production stocks, commodities, incomplete capital construction projects, securities and financial instruments of futures deals (including forward and futures contracts and option contracts). Not subject to depreciation there shall be the following types of depreciable property: 1) the property of budgetary organizations, with the exception of the property, acquired in connection with the performance of business activity and used for the performance of such activity; 2) the property of non-profit organizations gained in the form of purposive receipts or acquired at the expense of purposive receipts and used for carrying out non-profit making activity; 3) the property acquired (created) with the use of budgetary funds. Said rule shall not apply to the property gained by a taxpayer as result of privatization; 4) the objects of outdoor improvement (the objects of forest economy, road maintenance economy, whose construction has been carried out with the use of the sources of budgetary and other similar purposive financing, specialised installations for navigational situations) and other similar objects; 5) productive livestock, buffalos, bullocks, yaks, deer and other wild animals (with the exception of draught animals); 6) acquired publications (books, booklets and other similar objects) and works of art. With this, the cost of acquired publications and other similar objects, safe for works of art, shall be included into the composition of other outlays connected with production and sale in the full amount at the moment of acquiring said objects; 7) property acquired (created) at the expense of the funds which have been received in compliance with Subitems 14, 19, 22 and 23 of Item 1 of Article 251 of this Code, as well as the property mentioned in Subitems 6 and 7 of Item 1 of Article 251 of this Code; 8) acquired rights to the results of intellectual activity and other objects of intellectual property, where under the contract concerning the acquisition of said rights payment shall be made by periodical installments within the whole term of this contract's validity. 3. For the purposes of this Chapter the following fixed assets shall be excluded from the composition of depreciable property: - those transferred (received) under contracts for gratuitous use; - those temporary closed down by decision of the leadership of an organization for a term exceeding three months; - those being reconstructed or modernized by decision of the leadership of an organization within a term exceeding 12 months. When re-activating an object belonging to fixed assets, the depreciation with regard to it shall be calculated in the procedure which has been effective prior to the moment of re-activation thereof and the term of beneficial use thereof shall be extended by the period of temporary closing-down the object belonging to the fixed assets. Article 257. Procedure for Determining the Cost of the Depreciated Property1. Seen as fixed assets for the purposes of the present Chapter shall be the part of the property which is applied as a labour facility for the manufacture and sale of commodities (for the performance of works and for rendering services), or for the management of the organisation. The original cost of a fixed asset shall be defined as the sum of the outlays on its acquisition (and in the event of acquiring a fixed asset by a taxpayer free of charge it shall be defined as the valuation cost of such property in compliance with Item 8 of Article 250 of this Code, its erection, manufacturing, delivery and bringing to the condition of fitness for use, safe for the amount of taxes subject to deduction and accounted in the composition of outlays in compliance of this Code). Recognized as the original cost of the property, which is the object of leasing, there shall be the sum of the leasing party's outlays on its acquisition, construction, delivery, manufacturing and bringing to the condition of fitness for use, with the exception of the sums of taxes subject to deduction and recorded in the composition of the outlays in conformity with the present Code. The replacement value of the depreciated fixed assets, acquired (created) before the present Chapter is put into force, shall be defined as their initial cost with an account for the revaluations, performed before the date of enforcement of the present Chapter. When defining the replacement value of the depreciated fixed assets, for the purposes of the present Chapter shall be taken into account the revaluation of the fixed assets, effected by the tax payer's decision as in the state on January 1, 2002 and reflected in the tax payer's business accounting after January 1, 2002. This revaluation shall be accepted for the purposes of taxation in an amount, not exceeding 30 per cent of the replacement value of the corresponding objects of fixed assets, reflected in the tax payer's business accounting as in the state on January 1, 2001 (with an account for the revaluation as in the state on January 1, 2001, made by the tax payer's decision and reflected in his business accounting in 2001). In this case, the size of the revaluation (of the devaluation) as in the state on January 1, 2002, reflected by the tax payer in 2002, shall not be recognized as the tax payer's income (outlays) for the purposes of taxation. In a similar order, for the purposes of taxation shall be accepted the corresponding revaluation of the sums of depreciation. When the tax payer carries out in the subsequent reporting (tax) periods after the enforcement of the present Chapter the revaluation (devaluation) of the cost of the fixed assets objects by the market cost, the positive (negative) sum of such revaluation shall not be recognized as an income (as the outlays), taken into account for the purposes of taxation, and shall not be accepted in defining the replacement value of the depreciated property and in computing the depreciation charges, taken into account for the purposes of taxation in conformity with the present Chapter. The residual cost of the fixed assets, introduced before the enforcement of the present Chapter, shall be defined as the difference between the replacement value of such fixed assets and the sum of depreciation, determined in the order, laid down in the fifth paragraph of the present Item. The residual cost of the fixed assets put into operation upon entry of this Chapter into force shall be defined as a difference between their initial cost and the amount of depreciation accrued for the period of their depreciation. When the taxpayer uses the objects of the fixed assets of his own manufacture, the original cost of such objects shall be defined as the cost of finished products calculated in compliance with Item 2 of Article 319 of this Code increased by the sum of the corresponding excise duties on the fixed assets which are excisable commodities. 2. The original cost of the fixed assets shall be changed in the cases of completing the construction and the equipment, of the reconstruction, modernisation, technical re-equipment and partial liquidation of the corresponding objects, and also on other similar grounds. Referred to the works involved in completing the construction and equipment, and also in the reconstruction and modernisation shall be the works caused by a change in the technological or official purpose of the equipment, building, structure or other object of the depreciated fixed assets, by the increased loads and (or) by the other new properties. For the purposes of this Chapter, to the reconstruction shall be referred the restructuring of the existing fixed assets objects in connection with the improvement of production and with the higher technical and economic indices carried out according to the project for the reconstruction of the fixed assets, aimed at an expansion of the production capacities, raising the standard and changing the range of the products. To the technical re-equipment shall be referred a complex of measures aimed at raising the technical and economic indices of the fixed assets or of their individual parts on the basis of the introduction of advanced hardware and technology, of the mechanisation and automation of the production, of the modernisation and replacement of the outdated and physically worn out equipment with new and more productive versions. 3. For the purposes of the present Chapter, recognised as non-material assets shall be the results of intellectual activity and other objects of intellectual property, acquired and (or) created by the taxpayer (or the exclusive rights to them), which are used in the output of products (in the performance of works or in rendering services) or for the organisation's managerial needs in the course of a long period of time (over twelve months). For a non-material asset to be recognised, it shall possess the capability to bring economic gain (income) to the taxpayer and properly formalised documents confirming the existence of the non-material asset itself and (or) the taxpayer's possession of the exclusive right to the results of the intellectual activity (including the patents, certificates and other protective documents, and a contract on the cession /acquisition/ of the patent or trade mark). To the non-material assets are referred in particular: 1) the exclusive right of the patent holder to an invention, an industrial sample or a useful model; 2) the exclusive right of the author and other rightholders to the use of a computer programme or of a data base; 3) the exclusive right of the author or other rightholders to the use of the topology of the integral microschemes; 4) the exclusive right to a trade mark, a service mark, to the name of the place of commodity origin and company name; 5) the patent holder's exclusive right to selection achievements; 6) the possession of know-how, a secret formula or process, or of information concerning industrial, commercial or scientific experience. The original cost of the depreciated non-material assets is defined as the sum of the outlays on their acquisition (creation) and on bringing them up to a state in which they are fit to use, with the exception of the sums of the taxes recorded in the composition of the outlays in conformity with the present Code. The cost of the non-material assets created by the organisation itself shall be defined as the sum of the actual expenditures on their creation and manufacture (including material outlays, outlays on the remuneration of labour and on the services of the outside organisations, and the patent duties connected with receiving patents and certificates), with the exception of the sums of the taxes recorded in the composition of the outlays in conformity with the present Code. To non-material assets shall not be referred: 1) scientific-research, research and development and technological works which have produced no positive result; 2) the intellectual and business qualities of the organisation's workers, their qualifications and labour capacity. Article 258. Depreciation Groups. Specifics of Including the Depreciated Property into the Composition of the Depreciation Groups1. The depreciated property is divided into depreciation groups in accordance with the term of its beneficial use. Recognised as the term of beneficial use is the period in the course of which an object of the fixed assets or an object of non-material assets serves to the purposes of the taxpayer's activity. The term of beneficial use shall be defined by the taxpayer on his own as on the date of putting the given object of the depreciated property into operation in conformity with the propositions of the present Article and subject of the classification of the fixed assets endorsed by the Government of the Russian Federation. A taxpayer shall be entitled to extend the term of beneficial use of an object of the fixed assets after the date of its putting into operation, where after the reconstruction, modernization or technical re-equipment of such object the term of beneficial use thereof has increased. With this, the term of beneficial use of fixed assets may be extended within the limits of the time period established for the depreciation group which such fixed asset was previously included in. If the term of beneficial use of an object has not increased after the reconstruction, modernization or technical re-equipment of an object belonging to fixed assets the taxpayer, when calculating depreciation thereof, shall take into account the remaining period of its beneficial use. 2. The term of beneficial use of an object of non-material assets shall be defined proceeding from the term of operation of the patent or of the certificate, and (or) from the other restrictions of the terms of use of the objects of intellectual property in conformity with the legislation of the Russian Federation or with the applicable legislation of a foreign state, and also proceeding from the term of beneficial use of non-material assets, substantiated by the corresponding treaties. The depreciation norms for the non-material assets, for which it is impossible to define the term of beneficial use of an object of non-material assets, shall be established as ten years (but shall be no longer than the term of the taxpayer's activity). 3. The depreciated fixed assets (property) shall be divided into the following depreciation groups: - the first group - all the short-life property with a term of beneficial use from 1 to 2 years inclusive; - the second group - property with a term of beneficial use of over 2 years and up to 3 years inclusive; - the third group - property with a term of beneficial use from 3 to 5 years inclusive; - the fourth group - property with a term of beneficial use from 5 to 7 years inclusive; - the fifth group - property with a term of beneficial use from 7 to 10 years inclusive; - the sixth group - property with a term of beneficial use from 10 to 15 years inclusive; - the seventh group - property with a term of beneficial use from 15 to 20 years inclusive; - the eighth group - property with a term of beneficial use from 20 to 25 years inclusive; - the ninth group - property with a term of beneficial use from 25 to 30 years inclusive; - the tenth group - property with a term of beneficial use of over 30 years. 4. The classification of the fixed assets, divided into the depreciation groups, shall be endorsed by the Government of the Russian Federation. 5. For those kinds of fixed assets which are not indicated in the depreciation groups, the term of beneficial use shall be fixed by the tax payer in conformity with the technical conditions or with the recommendations of the manufacturer organisations. 6. For the purposes of this Chapter, the depreciated property shall be put onto the records in accordance with their original cost, defined in conformity with Article 257 of the present Code, if not otherwise provide for by this Chapter. 7. Property received (handed over) into financial rent under a contract of financial rent (under a leasing contract, shall be included into the corresponding depreciation group by the party, which shall record the given property in accordance with the terms of the contract of financial rent (of the contact of leasing). 8. The fixed assets, the rights to which are subject to state registration in conformity with the legislation of the Russian Federation, shall be included in the composition of the corresponding depreciation group as from the moment of the documentarily confirmed fact of submitting the documents for the registration of the above-said rights. Article 259. Methods and Procedure for Calculating the Sums of Depreciation1. For the purposes of the present Chapter, the taxpayer shall calculate the depreciation using one of the following methods, while taking into account the specifics envisaged by this Chapter: 1) the linear method; 2) the non-linear method. 2. The sum of depreciation for the purposes of taxation shall be defined by taxpayers every month, in accordance with the procedure established by the present Article. The depreciation shall be calculated separately for every object of the depreciated property. Depreciation with regard to an object of depreciable property shall be accrued beginning from the first day of the month next following the month when this object was put into operation. Charging depreciation with regard to an object of depreciable property shall be terminated beginning from the first day of the month next following the month when the cost of such object was completely written off or when this object was excluded from the composition of the depreciable property of a taxpayer for any reasons. 3. The taxpayer shall apply the linear method for the calculation of the depreciated property towards the buildings, structures and transmission appliances, included into the eighth to tenth depreciation groups, regardless of the deadline for putting these objects into operation. The taxpayer shall have the right to apply to the rest of the fixed assets any one of the methods presented in Item 1 of this Article. The method of calculating the depreciation selected by a taxpayer may not be changed within the entire period of calculating depreciation for an object of depreciable property. The calculation of the depreciation with respect to an object of the depreciated property shall be effected in accordance with the depreciation norm established for the given object proceeding from its term of beneficial use. 4. When applying the linear method, the sum of the depreciation, calculated with respect to the object of the depreciated property for one month, shall be defined as the product of multiplying its original (replacement) cost by the depreciation norm established for the given object. When using the linear method, the depreciation norm for every object of the depreciated property shall be defined by the formula: K = [1/n] X 100%, where K is the depreciation norm in percentages of the original (replacement) cost of the object of the depreciated property, and n is the term of beneficial use of the given object of the depreciated property, expressed in months. 5. When using the non-linear method, the sum of the depreciation, calculated for one month with respect to the object of the depreciated property, shall be defined as the product of the residual cost of the object of the depreciated property, multiplied by the depreciation norm fixed for the given object. When using the non-linear method, the depreciation norm of the object of the depreciated property shall be defined by the formula: K = [2/n] X 100%, where K is the depreciation norm in percentages of the residual cost applied towards the given object of the depreciated property, and n is the term of beneficial use of the given object of the depreciated property, expressed in months. Beginning with the month next to the month in which the residual cost of the object of the depreciated property reaches 20 per cent of the original (replacement) cost of this object, the depreciation for this object shall be calculated in the following order: 1) the residual cost of the object of the depreciated property shall be fixed for the purposes of calculating the depreciation as its basic cost for further calculations; 2) the sum of the depreciation being calculated for one month with respect to the given object of the depreciated property shall be defined by dividing the basic cost of the given object by the number of months left until the expiry of the term of beneficial use of the given object. 6. If in the course of a certain calendar month the organisation was instituted, liquidated, reorganised or transformed in any other way, so that in conformity with Article 55 of the present Code the tax period for it begins or ends before the end of the calendar month, the depreciation shall be calculated with account taken of the following specifics: 1) no depreciation shall be calculated by the liquidated organisation from the first day of the month in which the liquidation is completed, and by the reorganised organisation - from the first day of the month in which the reorganisation is completed in the established order; 2) the depreciation shall be calculated by the instituted organisation, emerging as a result of the reorganisation, as from the first day of the month next to the month in which its state registration was effected. The provisions of this Item shall not be spread to organisationswhich change their legal organisational form. 7. With respect to the depreciated fixed assets used for work under the conditions of an aggressive environment and (or) of a rigid shift schedule, the taxpayer shall have the right to apply to the basic depreciation norm a special coefficient, which shall not be higher than 2. For the depreciated fixed assets which are an object of a contract of financial rent (of a contract of leasing), the taxpayer, who has a fixed asset which shall be accounted under the terms and conditions of a contract of financial rent (of a contract of leasing), shall have the right to apply to the basic depreciation norm the special coefficient, which shall not be higher than 3. The given provisions shall not be spread to the fixed assets referred to the first, second and third depreciation groups if the depreciation for the given fixed assets is calculated using the non-linear method. The taxpayers who use the depreciated fixed assets for the performance of work under the conditions of an agressive environment and (or) of a rigid shift schedule, shall have the right to apply the special coefficient mentioned in this Chapter only when computing the depreciation with respect to the indicated fixed assets. For the purposes of this Chapter, seen as an aggressive environment shall be the aggregate of the natural and (or) artificial factors, whose impact is responsible for a higher wear and tear (ageing) of the fixed assets in the course of their operation). To the work in an aggressive environment shall also be equated the fixed assets being in direct contact with the explosion or fire-hazardous, toxic or other kind of aggressive technological environment, which may serve as a cause (source) of an emergency situation. Taxpayers which are agricultural organizations of industrial type (battery farms, cattle-breeding complex farms, beast farms, hothouse complex farms) shall be entitled in respect of their own fixed assets to apply to the basic depreciation norm, chosen independently subject to the provisions of this Chapter, a special coefficient of 2 at most. 8. The taxpayers which have handed over (received) the fixed assets that are the object of a contract of leasing concluded before the present Chapter was put into operation shall have the right to calculate the depreciation for this property using the methods and the norms existing at the moment of handing over (receiving) the property, and also applying a special coefficient of not higher than 3. 9. For passenger cars and passenger minibuses with the original cost, respectively, of over 300,000 roubles and 400,000 roubles, the basic depreciation norm shall be applied with the special coefficient of 0.5. The organisations which have received (transferred) the above passenger cars and passenger minibuses into leasing shall include this property in the composition of the corresponding depreciation group and shall apply the basic depreciation norm (subject to the coefficient applied by a taxpayer for such property) with a special coefficient of 0.5. 10. The calculation of the depreciation according to the depreciation norms which are lower than those established by the present Chapter shall be admissible by the decision of the head of the taxpaying organisation confirmed in the accounting policy for the purposes of taxation. The reduced depreciation norms may be applied only as from the start of the tax period and throughout the entire tax period. 11. In the sale of the depreciated property by taxpayers who have been applying the reduced depreciation norms, the tax base shall not be recalculated by the sum of the undercalculated depreciation against the norms envisaged by the present Article for the purposes of taxation. 12. An organisation acquiring the used objects of the fixed assets shall have the right to determine the depreciation norm for this property, taking into account the term of its beneficial use, reduced by the number of years (months) over which the given property was operated by its previous owners. If the term of actual use of the given fixed asset by previous owners is equal to or exceeds the term of beneficial use thereof determined on the basis of the classification of fixed assets endorsed by the Government of the Russian Federation in compliance with this Chapter, the taxpayer shall be entitled to determine independently the term of beneficial use of this fixed asset subject to the accident prevention requirements and other factors. Article 260. Outlays on the Repairs of Fixed Assets1. The outlays on the repairs of the fixed assets, made by a tax payer, shall be considered as other outlays and shall be recognized for taxation purposes in the accounting (tax) period, in which they were effected, in the amount of actual expenses. 2. The provisions of the present Article shall also apply towards the outlays of the lessee of the depreciated fixed assets, if the contract (agreement) concluded between the lease-holder and the lease-giver does not stipulate the recompense of these outlays. 3. Taxpayers shall be entitled for ensuring the even inclusion of outlays on the repairs of fixed assets in two and more tax periods to create reserves for forthcoming repairs of fixed assets in the procedure established by Article 324 of this Code. Article 261. Outlays on the Development of Natural Resources1. For the purposes of the present Chapter, recognised as outlays on the development of natural resources shall be the taxpayer's expenditures on the geological studies of the earth's bowels, on prospecting for commercial minerals and on the performance of preparatory works. To the outlays on the development of natural resources shall be referred, in particular: - outlays made on the search for and on an assessment of the deposits of commercial minerals (including the audit of the stocks), on prospecting for commercial minerals and (or) on the hydrogeological investigations carried out on the plot of the earth's bowels in accordance with the licences or other permits of authorized bodies obtained in the established order, as well as outlays on the acquisition of the necessary geological and other kinds of information from third persons, including from state bodies; - the outlays on preparing the territory for carrying out the mining, construction and other works in conformity with the established demands made on the safety and protection of the lands, mineral wealth and the other natural resources, and of the natural environment, including on the construction of temporary approach lines and roads for the transportation of the extracted mining rock, useful minerals and wastes, and on preparing the sites for erecting the corresponding structures and for the preservation of the fertile soil layer intended for the subsequent reclamation of the lands and for the storage of the extracted mining rock, commercial minerals and the wastes; - the outlays on the recompense of the complex damage inflicted upon the natural resources by the land users in the process of the construction and operation of the objects, as well as on the compensation of the losses caused to agricultural production by withdrawal of land for needs not connected with agricultural production and by the destruction and spoilage of deer pastures. To these outlays shall also be referred the compensations envisaged by the contracts (agreements) with local self-government bodies and (or) with the tribal and family communes of indigenous small-numbered peoples, concluded by these land users. 2. The outlays on the development of natural resources made after the present Chapter is put into operation shall be included in the composition of the other outlays in conformity with the present Chapter, if the source of their financing is not the budgetary funds and (or) the resources of the state extra-budgetary funds. The outlays on the development of natural resources mentioned in Item 1 of the present Article shall be recorded in the order stipulated by Article 325 of the present Code. When effecting the outlays on the development of natural resources concerning several plots of the earth's bowels, the said outlays shall be recorded separately for every plot of the bowels in the part defined by the taxpayer in accordance with the accounting policy he has accepted for taxation purposes. The said outlays shall be recognised for taxation purposes as from the first day of the month next to the month in which the given works (work stages) were completed, and shall be included in the composition of the other outlays in the following procedure: the outlays stipulated by Paragraph Three of Item 1 of this Article shall be evenly included into the composition of expenditure within 12 months; the outlays provided for by Paragraphs Four and Five of Item 1 of this Article shall be evenly included into the composition of expenditure within five years but within no longer term than the period of operation thereof. 3. If outlays on the development of natural resources for the corresponding plot of the earth's bowels have proved to be futile, the said outlays shall be recognised for the purposes of taxation as from the first day of the month next to the month in which the taxpayer informed the federal body for the management of the state stocks of mineral wealth or its territorial subdivision about the termination of further geological search, geological prospecting and other kind of works on this plot because of their uselessness. Recognised as futile shall be the geological search, geological prospecting and other works by the results of which the taxpayer has adopted the decision on stopping further works on the corresponding part of the plot of the earth's bowels because of the lack of prospect for finding deposits of commercial minerals or in connection with the impossibility or the unfeasibility of building and (or) of operating underground structures not involved in the extraction of useful minerals. The procedure stipulated by the present Item shall be applied to the outlays on the development of the natural resources referred to the part of the territory (of the water area) indicated in the corresponding licence. The taxpayer is obliged to keep a separate record on the corresponding part of the territory (of the water area). The above outlays shall be included in the composition of the other outlays in the procedure provided for by Item 2 of this Article. 4. The procedure for recognising the outlays on the development of natural resources for the purposes of taxation envisaged by the present Article shall also be applied to the outlays on building (boring) prospecting wells in the oil and gas fields which have proved to be unproductive, on carrying out a complex of geological works and tests with the use of this well, and also on the subsequent liquidation of this well. Such procedure shall be applied by the taxpayer, irrespective of whether he goes on with or stops further works on the corresponding plot of the earth's bowels after the liquidation of the unproductive well, under the condition that the outlays on this well are recorded separately. The outlays made on the unproductive well shall be recognised for taxation purposes evenly in the course of twelve months, beginning with the first day of the month next to the month in which this well was liquidated in the established order as not having fulfilled its purpose. The decision on recognising the corresponding well as unproductive shall be taken by the taxpayer once and for all, and shall not be subject to subsequent change. The taxpayer shall inform the tax body at the place of his recording of the decision adopted with respect to every well not later than the ultimate date fixed by the present Chapter for submitting the tax declaration for the reporting (tax) period into which he has actually included the outlays (part of such outlays) on the well into the composition of the other outlays. 5. The outlays on useless works for the development of natural resources shall not be included in the composition of outlays for the purposes of taxation, if in the course of five years before the moment when the rights to the geological study of the bowels, to the prospecting for and the extraction of useful minerals, or to some other use of the plot of the earth's bowels are granted to the taxpayer, similar kind of works have already been performed on this plot. The given provision shall not be applied if the said works were carried out on the basis of the principally different technology and (or) with respect to different useful minerals. 6. The outlays on the acquisition of works (services) of geological and other kinds of information from third persons, and likewise from state bodies, as well as outlays on a independent performance of the works aimed at the development of natural resources shall be recorded for the purposes of taxation in the amount of actual expenses. Article 262. Outlays on Scientific Studies and (or) on Research and Development Works1. The outlays involved in the creation of new or in the improvement of already existing products (commodities, works and services), in particular, outlays on inventions, as well as outlays on forming the Russian Technological Development Fund and other branch and inter-branch funds for financing scientific studies and research and development works registered in the procedure provided for by the Federal Law on Science and State Scientific Research Policy shall be recognized as outlays on scientific studies and (or) on research and development works. 2. A taxpayer's outlays on scientific studies and (or) research and development works relating to the development of new products (goods, works and services) or to the improvement of those being put out, especially the outlays on inventions borne by him independently or jointly with other organizations (in the amount corresponding to his share of expenditure), as well as under the contracts in which he acts as a customer with regard to such studies or works, shall be recognized for the purposes of taxation upon the completion of these scientific studies or research and development works (upon completion of individual stages of works) and signing by the parties of an acceptance certificate in the procedure provided for by this Article. The taxpayer shall evenly include the said outlays in the composition of the other outlays in the course of five years, under the condition that these studies and works are used in the production and (or) sale of commodities (in the performance of works or in rendering services) as from the first day of the month next to the month in which these studies (individual stages of research) were completed. The taxpayer's outlays on scientific studies and (or) on research and development works, aimed at the creation of new or at an improvement of already applied technologies, or at the creation of new kinds of raw and other materials, which have not produced any positive result, shall also be included in the composition of other outlays evenly in the course of three years in an amount not exceeding 70 per cent of the actually incurred expenses, in accordance with the order envisaged by the present Item. 3. The outlays of a taxpayer on scientific studies and (or) research and development works in the form of allocations to the Russian Technological Development Fund, as well as of other branch and inter-branch funds for financing scientific studies and research and development works registered in the procedure provided for by the Federal Law on Science and State Scientific Research Policy shall be recognized for the purposes of taxation within the limits of 0.5 per cent of the incomes (gross receipt) of the taxpayer. The operation of Paragraph One of this Item shall not extend to the outlays of branch and inter-branch funds for financing research and development words in the form of allocations to the Russian Technological Development Fund. 4. The provisions of Item 2 of the present Article shall not extend to outlays on scientific studies or on the research and development works carried out in organisations which are engaged in scientific studies and (or) in research and development works in the capacity of performer (of the contractor or of the subcontractor). The said outlays shall be considered as made on the performance by these organisations of an activity aimed at deriving incomes. 5. Where as a result of expenses incurred in connection with scientific studies and (or) research and development works a taxpaying organization gains the exclusive rights to the results of the intellectual activities indicated in Item 3 of Article 257 of this Code, these rights shall be recognized as the intangible assets subject to depreciation in compliance with Item 2 of Article 258 of this Code. Article 263. Outlays on the Obligatory and Voluntary Insurance of Property1. The outlays on the obligatory and voluntary insurance of property embrace the insurance fees for all kinds of the obligatory insurance and for the following kinds of the voluntary insurance of property: 1) voluntary insurance of the transportation facilities (of water, air, ground and pipeline transport), including those rented, the outlays on whose maintenance are included in the outlays involved in production and sale; 2) voluntary insurance of freight; 3) voluntary insurance of the production-profiled fixed assets (including those rented), of non-material assets and of the objects of the capital construction in progress (including those rented); 4) voluntary insurance against the risks involved in the performance of the construction and mounting works; 5) voluntary insurance of the commodity-material stocks; 6) voluntary insurance of the harvest of agricultural cultures and the livestock; 7) voluntary insurance of other property which the taxpayer uses in carrying out an activity aimed at deriving an income; 8) voluntary insurance of responsibility for inflicting harm, if such insurance is a condition for the performance by the taxpayer of activity in conformity with the international liabilities of the Russian Federation or with the generally accepted international demands. 2. The outlays on the obligatory kinds of insurance (those established by the legislation of the Russian Federation) shall be included in the composition of the other outlays within the limit of the insurance tariffs in conformity with the legislation of the Russian Federation and with the demands of the international conventions. If the given tariffs are not approved, the outlays on the obligatory insurance shall be included in the composition of the other outlays in the amount of the actual expenditures. 3. The outlays on the voluntary types of insurance indicated in this Article shall be included into the composition of the other outlays in the amount of the actual expenditures. Article 264. Other Outlays Involved in the Production and (or) Sale1. To the other outlays involved in the production and (or) in the sale, are referred the following taxpayer's outlays: 1) the sums of the taxes and fees calculated in the order established by the legislation of the Russian Federation on taxes and fees, with the exception of those listed in Article 270 of the present Code; 2) the outlays on the certification of the products and services; 3) the sums of the commission fees and other similar expenditures on the works (services), performed (rendered) by outside organisations; 4) the sums of the port and airfield fees, the outlays on the pilot's services and other similar expenses and the other similar payments; 5) the sums of paid out travelling allowances within the limit of the norms established in conformity with the legislation of the Russian Federation; 6) outlays on ensuring fire safety of a taxpayer in compliance with the laws of the Russian Federation, outlays on the maintenance of a gas rescue team, outlays on the services rendered for the protection of property, on the fire prevention services, outlays on the acquisition and of the other services of guarding activity, as well as outlays on the maintenance of the internal security service for fulfilling the functions of economic protection of the banking and economic operations, and for the protection of material values (with the exception of the outlays on the equipment and on the acquisition of weapons and other special means of defence); 7) outlays on ensuring normal labour conditions and accident prevention measures provided for by the laws of the Russian Federation, outlays on civil defence in compliance with the laws of the Russian Federation, as well as outlays on medical treatment of occupational diseases of workers engaged in jobs with harmful or dangerous working conditions, outlays connected the maintenance of premises and equipment of health units situated directly on the territory of the organization; 8) the outlays on hiring workers, including the outlays on the services of specialized organizations profiled on an engagement of the personnel; 9) the outlays on rendering services involved in the guarantee repairs and servicing, including deductions into the reserve against the forthcoming outlays on the guarantee repairs and guarantee servicing (with account of the provisions of Article 267 of the present Code); 10) the rentals (leasing payments) for rented (leased) property. If the property received under a contract of leasing is recorded by the lease holder, the rentals (leasing payments) shall be recognised as outlays minus the sums of depreciation charges calculated for this property in conformity with Article 259 of the present Code; 11) outlays on the maintenance of the company's transport facilities (motor, railway, air and other types of transport). The outlays on compensation for the use of personal passenger cars and motorbikes for making official trips within the limit of the norms established by the Government of the Russian Federation; 12) outlays on business trips, in particular, on: - workers' fares to the place of destination of the business trip and back to the place of his permanent work; - the hire of living premises. In this item of the outlays, subject to compensation shall also be the worker's expenses incurred in the remuneration of additional services rendered in hotels (with the exception of the fees for services rendered in bars and restaurants, in hotel rooms and payments for the use of recreational and health facilities); - the daily or field allowances within the limit of the norms approved by the Government of the Russian Federation; - the formalisation and issue of visas, passports, vouchers, invitations and other similar documents; - the consular and airfield fees, fees for the right of the entry, passage and transit of motor and the other transportation facilities, for the use of sea channels and of other similar installations, and other similar payments and fees; 12.1) outlays on the delivery from the place of residence (gathering) to the place of work and back of workers employed by the organizations exercising their activities by shifts or in the field (in expeditions). Said outlays shall be provided for by collective agreements; 13) outlays on providing food allowances for sea crews, river and air vessels within the limit of the norms approved by the Government of the Russian Federation; 14) outlays on legal and informational services; 15) outlays on consulting and other such services; 16) payment to the state and (or) private notaries for notarial formalisation. This kind of outlay shall be accepted within the limit of the tariffs approved in the established order; 17) outlays on auditor services; 18) outlays on the management of the organization or of its individual subdivisions, as well as outlays on the acquisition of services related to management of organizations or individual subdivisions thereof; 19) outlays on the services involved in sending over workers (technical and managerial personnel) by outside organisations for them to take part in the production process, in the management of the production or in the fulfilment of other functions involved in the production and (or) sale; 20) outlays on the publication of business accounting reports, as well as on publishing and on the other ways of revealing other kinds of information, if the legislation of the Russian Federation has imposed upon the taxpayer the duty to actualise such publication (revealing); 21) outlays involved in the presentation of the forms and of information of the state statistical observation, if the legislation of the Russian Federation has imposed upon the taxpayer the duty to present such information; 22) representation outlays connected with holding official reception and with the servicing of representatives from other organisations taking part in negotiations aimed at establishing and maintaining cooperation, in accordance with the procedure stipulated by Item 2 of the present Article; 23) outlays on the training and retraining of personnel on the taxpayer's staff on a contractual basis in accordance with the procedure stipulated by Item 3 of the present Article; 24) outlays on stationery; 25) outlays on postal, telephone, telegraph and other similar services, outlays on the remuneration of communication services and on services rendered by computer centres and banks, including those on the services of fax and satellite communication, of e-mail and of informational systems (SWIFT, Internet and other similar systems); 26) outlays connected with the acquisition of the right to the use of computer software and of data bases under the contracts with the right holder (under licence agreements). To the said outlays shall also be referred outlays on acquisition of exclusive rights to the software at the cost of less than 10 000 roubles and those made on the renewal of computer software and of data bases; 27) the outlays on the current study (research) of the market situation, on the collection of information directly involved in the production and sale of commodities (works, services); 28) the outlays on the advertising of the put out (acquired) and (or) of the sold commodities (works, services), of the activities of the taxpayer, of trade marks and service marks, including participation in exhibitions and in the fairs, taking into account the provisions of Item 4 of the present Article; 29) the contributions, deposits and other obligatory fees paid to non-profit organisations, if the payment of such contributions, deposits and other obligatory fees is a condition for the performance of their activity by the taxpayers who are payers of such contributions, deposits or other obligatory fees; 30) contributions to international organisations, if the payment of such contributions is an obligatory condition for the performance of their activity by the taxpayers who are payers of such contributions, or if it is a condition for the international organisation's rendering the services necessary for the performance of the said activity by the tax payer who is a payer of such contributions; 31) the outlays involved in the remuneration of services to the outside organisations for the maintenance and sale, in accordance with the procedure established by the legislation of the Russian Federation, of the objects of pledge and pawn over the time when the said objects are kept by the pawn holder after they are handed over to him by the pawn giver; 32) outlays on the maintenance of settlements for shifts of workers and temporary settlements, including all objects of housing-communal and socio-cultural purpose, of truck farms and other similar services, in the organizations exercising their activities by shifts or in the field (in expeditions). Said expenses for the purposes of taxation shall be recognized within the limits of the normative standards for maintenance of similar objects and services endorsed by bodies of local self-government at the place of the taxpayer's activities. Where such normative standards are not endorsed by bodies of local self-government, the taxpayer shall be entitled to apply the procedure for determining outlays on the maintenance of these objects effective with regard to similar objects situated on the given territory and subordinate to said bodies; 33) the deductions of the enterprises and organizations running especially dangerous radioactive and nuclear works and objects for forming the reserves for guaranteeing the security of the said works and objects at all stages of their life cycle and development in conformity with the legislation of the Russian Federation on the use of nuclear power and in accordance with the procedure established by the Government of the Russian Federation; 34) the outlays on the preparation and development of new production, workshops and aggregates; 35) the outlays of non-capital character connected with the improvement of technology, as well as of the organisation of production and management; 36) the outlays on services involved in keeping business accounting, rendered by outside organisations or the individual businessmen; 37) periodical (current) payments for the use of the rights to the results of intellectual activity and of the means of individualisation (in particular, of rights arising from the patents on the inventions, industrial samples and other forms of intellectual property); 38) the outlays effected by tax paying organisations making use of the labour of invalids in the form of funds directed towards the goals ensuring the social protection of invalids, if the invalids comprise no less than 50 per cent of the total number of such taxpayer's workforce and the share of the outlays on the remuneration of invalids' labour in the outlays on remuneration of labour is not less than 25 per cent. Recognized as goals ensuring the social protection of invalids shall be the improvement of labour conditions for invalids, creation of new jobs for invalids (including the acquisition and installation of equipment for, and the organization of the labour of, home-workers), training (including training in new professions and labour skills) and job placement of invalids, protection of the invalids' rights and lawful interests, measures for their rehabilitation (including acquisition and servicing of rehabilitation means, of guide-dogs, of authorizations to places in sanatoriums and health resorts) and providing for invalids equal opportunities (including transport servicing of invalids and arranging relaxation of disabled children) with other citizens in conformity with the legislation of the Russian Federation on the social protection of invalids, including making contributions for the maintenance of public organizations of invalids; When determining the total number of invalids, into the average-listed number of workers shall not be included invalids combining jobs, working on turn-key contracts and other contracts of civil-legal nature; 39) the outlays of tax paying invalids' public organisations, and of tax-paying institutions, the only owners of whose property are the public organisations of invalids in the form of the funds oriented towards the performance of the activity of the said public organisations of invalids and towards the goals pointed out in Item 38 of the present Item. After the expiry of the tax period, the receivers of the funds intended for the exercise of activities of a public organization of invalids and for the purposes of the social protection of invalids shall submit to the corresponding tax bodies at the place of their recording a report on the purpose-oriented use of the received funds. If these funds have not been used, from the moment when the receiver has actually used such funds, not for the purpose (violated the terms for granting these funds), such funds shall be recognised as income of the tax-payer who has received these funds. The outlays mentioned in Subitem 38 of the present Item and in the present Subitem cannot be included in the outlays connected with the production and (or) the sale of excisable commodities, mineral raw materials, other commercial minerals and other commodities in accordance with the list compiled by the Government of the Russian Federation in agreement with the all-Russia organizations of invalids, as well as with rendering intermediary services connected with the sale of such commodities, mineral raw materials and minerals; 39.1) outlays of taxpaying organizations whose authorized (pooled) capital is completely made up of the contribution of religious organizations in the form of receipts from the sale of religious literature and articles of religious purpose, provided that these amounts are transferred for the exercise of the authorized activities of said religious organizations; 40) payments for the registration of the rights to immovable property and to land, of the deals in the said objects, payments for the supply of information on the registered rights and the remuneration of the services of the authorised bodies and specialised organisations involved in the assessment of property and in compiling documents of cadastre and technical recording (inventory) of the objects of immovable property; 41) outlays under the contracts of civil-legal nature (including turn-key contracts) concluded with individual businessmen not on an organisation's staff; 42) the outlays of the agricultural organisation taxpayers on providing food for the workers engaged in agricultural works; 43) outlays on the replacement of copies of periodical printed matter in which defects have been exposed or which have lost their marketable appearance in the course of transportation and (or) sale, and which have proved to have missing parts, but not over seven per cent of the cost of the edition of the corresponding issue of the periodical printed publication; 44) losses in the form of the cost of mass media products and books which have defects or have lost their marketable appearance, or which have not been sold within the time term indicated in the present Subitem (morally outdated), and which are written off by the taxpayer engaged in the manufacture and issue of the mass media products and books, within the limit of ten per cent of the cost of the edition of the corresponding issue of the periodical publication or of the corresponding edition of books, as well as the outlays on writing off and utilisation of mass media products and books in which defects have been exposed or which have lost their marketable appearance or which have not been sold. Recognised as outlays shall be the cost of mass media products and books which have not been sold to the following deadlines: - as concerns the printed periodical publications before the output of the next issue of the corresponding periodical; - as concerns books and other non-periodical printed matter - within 24 months after their issue; - as concerns calendars (regardless of their form) before April 1 of the year to which they refer; 45) the contributions on the obligatory social insurance against accidents in production and against occupational diseases, made in conformity with the legislation of the Russian Federation; 46) the taxpayer's deductions made to provide for the supervisory activity of the specialised institutions for the purposes of exerting control over the observation by such taxpayers of the corresponding demands and terms, stipulated by the legislation of the Russian Federation, and the taxpayers' deductions into reserves created in conformity with the legislation of the Russian Federation regulating activities in the sphere of communications; 47) losses caused by spoilage; 48) outlays connected with maintenance of public catering units for servicing labour collectives (including amounts of accrued depreciation, outlays on repairing premises, outlays on lighting, heating, water and power supply, as well as on fuel for cooking); 49) the other outlays involved in the production and (or) sale. 2. To the representation outlays shall be referred the taxpayers' outlays on official receptions and (or) on servicing the representatives of other organisations, taking part in negotiations aimed at establishing and (or) at maintaining mutual cooperation, as well as the participants who have arrived to attend the meetings of the taxpayer's board of directors (of the board) or of the other management body, regardless of the place of holding such events. To the representation outlays shall be referred those made on holding official receptions (lunches, dinners or other similar events) arranged for the said persons, as well as for the officials of a taxpaying organization participating in the talks, on providing transport facilities to take these persons to the place of holding representation events and (or) meetings of the management body and back, on snack bar servicing during negotiations, and on the remuneration of the services of interpreters who are not on the tax payer's staff, to provide for translation during the representation events. To the representation outlays shall not be referred those made on organising entertainment and recreation, prophylactic activity or the treatment of diseases. The representation outlays shall be included in the course of the reporting (tax) period in the composition of the other outlays in an amount not exceeding four per cent of the taxpayer's outlays on the remuneration of labour over this reporting (tax) period. 3. To the taxpayer's outlays on personnel training and retraining carried out on the grounds of contracts with educational establishments shall be referred outlays involved in the training and retraining (including in raising the qualifications of personnel) in conformity with the contracts signed with these establishments. The said outlays shall be included in the composition of the other outlays, if: 1) the corresponding services are rendered by Russian educational establishments which have received state accreditation (possess the corresponding licence), or by foreign educational establishments with the corresponding status; 2) training (retraining) is provided to the workers on the tax payer's staff and in the operating organisations responsible for maintaining the qualifications of workers employed at nuclear power plants - to the workers of these plants, in conformity with the legislation of the Russian Federation; 3) the programme for training (retraining) helps in raising qualifications and encourages a more efficient use of the trained or the retrained specialist in this organisation in the framework of the tax payer's activity. Not recognised as outlays on personnel training and retraining shall be the outlays involved in organising entertainment, recreation or medical treatment, or outlays connected with the maintenance of educational establishments or with rendering them gratuitous services, with the payment for the workers' studies at higher and secondary special educational establishments for them to receive a higher or secondary special education. The said outlays shall not be accepted for the purposes of taxation. 4. For the purposes of the present Chapter, to the organisation's outlays on advertising shall be referred: - the outlays on advertising effected through the mass media (including announcements in the press and in radio and television programmes) and the telecommunication networks; - outlays on lit and other outdoor advertising, including the manufacture of advertisement stands and panels; - outlays on taking part in exhibitions, fairs and displays, on the decoration of showcases, of sales exhibitions, rooms for the exposition of samples and demonstration halls, on the production of advertising booklets and catalogues containing information on the works and services carried out and rendered by an organization, or on an organization proper, and on the price discounts concerning the commodities which have fully or partially lost their original properties because of being put on display. The taxpayer's outlays on the acquisition (the manufacture) of the prizes given out to the winners during the large scale advertising campaigns, as well as the taxpayer's outlays on other types of advertising not indicated in Paragraphs from Two to Four of this Item, which are carried out by him with a report (tax) period for the purposes of taxation shall be recognized in the amount not exceeding one per cent of the proceeds from sale to be defined in conformity with Article 249 of the present Code. Article 265. Extra-Sale Outlays1. Into the composition of the extra-realisation outlays, not connected with production and the sale, are included the justified outlays on the performance of an activity which is not directly involved in the production and (or) in sale. To such outlays are, in particular, referred: 1) outlays on the maintenance of the property handed over under a rental contract (of leasing) (including on the depreciation of this property); For organisations which hand over on a systematic basis for payment into temporary use and (or) into temporary possession and use their property and (or) the exclusive rights arising from the patents on inventions, on industrial samples and on other kinds of intellectual property, seen as outlays involved in the production and realisation shall be the outlays connected with this activity; 2) outlays in the form of interest on any kind of debt liabilities, including interest calculated on securities and other liabilities, issued (emitted) by the taxpayer subject to the specifics provided for by Article 269 of this Code (for banks, the specifics in defining the outlays in the form of interest shall be established in conformity with Articles 269 and 291. Recognised as outlays shall, in this case, be interest on any kind of debt liabilities, irrespective of the character of the granted credit or loan (current and /or/ investment). Recognised as outlays shall be only the sum of interest calculated over the actual time of use of the borrowed funds (the actual time of the said securities being placed at the disposal of third persons), and of the profitability established by the emitter (loan-giver); 3) the outlays on organizing the issue of own securities, especially on the preparation of the prospectus of the emission of securities, on the manufacture or acquisition of blank forms, on the registration of securities, outlays connected with servicing own securities, including outlays on the services for keeping a register of the owners of securities, on depository services, on the services of agents for paying interest (dividends), the outlays connected with keeping a register, providing information to share holders in compliance with the laws of the Russian Federation, and other similar outlays; & |
