the project of the Federal Law “On making changes to some legislative acts of the Russian Federation concerning granting of retirement pension”.
As it is reported in the press-release of the Government of the Russian Federation the project of the Federal Law “On making changes to some legislative acts of the Russian Federation concerning granting of retirement pensions” has been prepared in order to reinforce social support of wives (husbands) of military Alpha-bank data (B. Groznovsky. “Major National Owner. – Vedomosty, February 13, 2007) Above Minority Package of Shares, or Government Control Completion Phase.
Ref.: A. Vinkov. "You are the Government! – Expert, 2008, ¹ 2, pp. 28-31.
Ref. A. Adygin. “Integration forms development and Management Models: Experience of the Top Russian Corporations and Groups of Companies. – Russian Management Magazine, 2004, Volume 2, ¹ 4,October-December, p.p. 3558.
service people, doing service by contract, as well as wives (husbands) of government bodies of the Russian Federation employees and international organizations.
According to legislation currently in effect insured length of service includes periods of work and (or) other activity on condition that insurance contributions were paid during these periods to the Pension Fund of the Russian Federation.
Besides, Federal Law “On retirement pensions in the Russian Federation” from 17.12.2001 envisages the possibility to include some “non-insured” periods in the insured length of service.
Inclusion in the insured length of service the periods of wives (husbands) of servicemen who do military service by contract living together with husbands (wives) in places where they could not work due to the absence of employment opportunities as well as periods of wives (husbands) of the government bodies of the Russian Federation and international organizations living abroad is not envisaged by the Law from 17.12.2001.
According to pension legislation that was in effect up to 01.01.2002 while calculating the pension in concordance with the norms of the Law “On government pensions in the Russian Federation” from 20.11.such periods of residence were included in the general length of service, but of the period no more than years in total.
The project envisages making changes to paragraph 1 clause 11 of the Law from 17.12.2001 that will allow inclusion of the periods mentioned above in the length of service.
Simultaneously it is supposed to make change to paragraph 2 clause 17 of the Federal Law “On compulsory pension legislation in the Russian Federation” from 15.12.2001 extending it for the periods mentioned.
This paragraph envisages allocation of federal budget funds to compensate for the payment of insurance contributions over the period of care for a child up to the age of one and a half year and over the period of doing military service by contract.
The procedure for compensation of the funds mentioned is defined by the Federal Law “On the federal budget funds allocated to the Pension Fund of the Russian Federation to compensate for insurance contributions payment over the period of care for a child up to the age of one and a half year and doing call-up military service” from 21 March 2005.
Thus, in case the bill is approved, the funds will be allocated from the federal budget to compensate payment of insurance contributions over the periods mentioned.
The amount of funds from the federal budget to be allotted to the Pension Fund of the Russian Federation in order to compensate for each insured person in case bill is approved will be included in the calculated pension capital, from which insurance part of the retirement pension is calculated.
These measures allow increasing the rate of retirement pension for these categories of the insured people.
In 2009 additional expenditures for project fulfillment will be equal, according to preliminary estimation, to RUR 568.60 mln a year.
At the same time it should be noted that the periods in question should be proved according to the order established by the Government of the Russian Federation. At present insured length of service for establishing of retirement pensions is proved according to Regulations on calculation and proof of insured length of service for establishing retirement pensions, established by the Government of the Russian Federation on 24.07.2002.
In this connection in case the bill is approved relative amendments will be made to the Regulations mentioned that will define the procedure for proof of new periods to be included in insured length of service.
On studying press-release at least two questions arise:
1. What the norms for refund by new “non-insured periods” be like – the periods of wives (husbands) of servicemen who do military service by contract together with husbands (wives) in places where they could not work due to the absence of employment opportunities as well as periods of wives (husbands) of the government bodies of the Russian Federation and international organizations abroad be like;
2. Whether “non-insured periods” mentioned above that had taken place before amendments to the laws “On compulsory pension insurance in Russian Federation” and “On government pensions in the Russian Federation” came into effect will be taken into account.
Review of Economic Legislation over January I. Tolmacheva At the end of December-January the following acts were approved: Procedure for making compensatory payments for deposits in the Savings Bank of the Russian Federation (Sberbank) to some categories of citizens of the Russian Federation in 2008; Procedure for management of means of the Fund for national wel fare and Requirements for financial assets, where the means of the Fund for national welfare can be placed;
coefficient for indexation of the insurance part of the retirement pension; data applied for calculation of severance tax for oil for December 2007 are prepared for application.
I. Decrees of the Government of the Russian Federation “ON PROCEDURE OF making compensatory payments for deposits in the Savings Bank of the Russian Federation (Sberbank) to some categories of citizens of the Russian Federation in 2008” from 29.12.2007 No Procedure for making compensatory payments for deposits in the Savings Bank of the Russian Federation (Sberbank) by the state of affaires on 20 June 1991 that are secured savings according to the Federal Law “On restoration and protection of savings of the citizens of the Russian Federation” from 10.05.1995 No 73FZ to some categories of citizens of the Russian Federation in 2008.
For instance the Procedure establishes the coefficients to be applied for determination of the compensation amount and additional compensation, categories of citizens that are to receive these payments are enumerated (citizens of before 1954 year of birth inclusive, disabled, parents, guardians and tutors of the disabled children etc.).
2. “PROCEDURE FOR MANAGEMENT OF MEANS OF THE FUND FOR NATIONAL WELFARE” from19.01.2008 NoProcedure for management of means of the Fund for national welfare and Requirements for financial assets, where the means of the Fund for national welfare can be placed are approved.
The requirements for financial assets include requirements for promissory notes of foreign countries’ government agencies and central banks, promissory notes of international financial organizations, including those processed as securities as well as requirements for deposits in foreign banks and credit institutions.
Means of the Fund for national welfare can be deposited in foreign banks and credit institutions..
3. “ON ESTABLISHING OF THE INDEXATION COEFFICIENT FOR INSURANCE PART OF THE RETIREMENT PENSION FROM 1 FEBRUARY 2008” from 25.01.2008 No Comes into effect from 01 February 2008.
From 1 February 2008 indexation will be conducted for insurance part of the retirement pension. Coefficient index will be 1.12.
II. Letters, Orders, Instructions Letter of the Federal Tax Service of the Russian Federation “ON DATA, NECESSARY TO CALCULATE SEVERANCE RATE IN REGARD TO OIL FOR DECEMBER 2007” dated 17.01.2008, No ÑÊ-611/25@ The data, applied to calculation of the severance tax in regard to oil for December 2007, are prepared for application:
- average level of prices for oil grade Urals – USD 87.94 per barrel;
- average US dollar exchange rate against ruble of the Russian Federation over all the days of the tax period – 24.5662;
- Cp coefficient value – 7.4301.
Review of Regulatory Documents Concerning Taxation over December 2007 – January L. Anisimova 1. In 10 days after official promulgation the order of the Ministry of Education and Science from 1.10.2007 No 267, registered in the Ministry of Justice of the Russian Federation on 17.01.2008, adopted to fulfill the decree of the Government of the Russian Federation from 23 August 2007 No 534 “On conducting experiment on government support for granting of educational credits to students of higher educational institution hiving government accreditation”, will come into effect.
Higher educational institutions that have registered applications for taking part in the experiment in appropriate manner: 1. Receive the right to act as a warrantor of the contract between students and credit institutions of granting education credits; 2. Receive refinancing from the budget funds at the rate of 10% of the sum of educational credits granted in all the cases when a warrantor executed his liabilities of a borrower to the bank that is a participant of the experiment in concordance with the contract and the borrower in his turn does not carry out his obligations to the bank partially or at all.
The problem is that the government guarantees the warrantor only 10% of the sum of the educational credit, whereas a warrantor and a student have joint responsibility by the warrantor contract, that is are responsible by the total amount f the credit. In case a borrower does not carry out his obligations an educational institution will have to pay to the bank the sum, exceeding the sum of the borrower’s debt over the figure of 10% from the contract for granting an educational credit, since the bank rendered the service not to the educational institution but to the third person – student. Besides, this order, violating the legislation on banks and banking activity defines the kinds of credits, such as “main, additional, accompanying”. Introduction of random names for the credits not envisaged either by banking or tax legislation or by the decree of the Government of the Russian Federation No 534 can lead to complications when applying tax legislation to exclusion of the sums paid by the warrantor, higher educational institution, at the expense f the budgetary subsidy from taxable incomes of the student.
The relevance of exclusion from the experiment of budgetary educational institutions – it is directly stated in the Decree of the Government of the Russian Federation that government (municipal) institution cannot act as a warrantor - also causes some doubt, as well as the fact that according to the decree of the Government of the Russian Federation interest rates for educational credits are firmly regulated at the rate of no more than 10%. These prescriptions do not correspond to the rules of the market economy and exclusion of budgetary educational institutions from the list of participants decreases their competitive ability as compared with the commercial ones.
2. According to the decree of the Government of the Russian Federation from 19 January 2008 No from 1.01.2008 a total relative exemption from paying custom duties and taxes is granted to the Russian citizens exporting temporarily in order to conduct geological prospecting of floating or operating under the surface of water drilling or operation platforms (code of the Goods denomination of the Foreign Economic Activity of Russia 8905 20 000 0), the limitation period of whose import into the territory of the Russian Federation is 5 calendar months on condition that such goods remain the property of foreigners and are given to Russian citizens on contracts of rent, financial rent.
Legal base for the decree is not completely clear. In fact, clause 150 of the Tax Code of the Russian Federation defines the exhaustive list of goods not levied with VAT in case of their import into the territory of the Russian Federation. Such group of goods is not mentioned in the list.
The Decree of the Government of the Russian Federation contains reference for clause 212 of the Tax Code of the Russian Federation. In the situation in question there is a legislative conflict: issue on paying of the tax established by the Tax Code of the Russian Federation is settled with the reference to another specific legislation act – Customs Code of the Russian Federation.
Customs Code and Tax Code are to be brought to conformity (see, for example, version of the Tax Code of the Russian Federation with the reference to the Customs Code from 28.05.03 No 61-ÔÇ). Later this practice was abolished, which at [present leads to the conflict of legislation. Tax Code of the Russian Federation contains the regulations that are not in accord with the regulations of the Customs Code of the Russian Federation as to the procedure of taxes payment, and Tax Code defines the procedure for payment of taxes, established in the Tax Code.
3. According to the letter of the Federal Tax Service of the Russian Federation from 9 January 2008 No 18-0-09/0001 the issue on the procedure for social payments as to holiday payments is clarified. It is explained that according to paragraph 2 clause 223 of the Code on receiving of income in the form of labor remuneration the last day of the month for which income for fulfilled labor duties was accrued is referred to as the date of actual receipt. Holiday payments are not payments for fulfillment of labor duties, since according to clauses 106 and 107 of the Tax Code of the Russian Federation holiday is the period during which an employee is exempted from execution of work duties. That is why holiday payments are classified by the Federal Tax Service of the Russian Federation not as labor remuneration but as other incomes, received in monetary form, regulated by subparagraph 1 paragraph 1 clause 223 of the Code. In this case according to subparagraph 4 clause 226 of the Tax Code of the Russian Federation, tax agents should deduct the calculated tax sum directly by actual payment.