Russian president signs a law on amendments to the Tax code

RUSSIAN PRESIDENT SIGNS A LAW ON AMENDMENTS TO THE TAX CODE

President of the Russian Federation signed on May 29, 2002, a Law introducing amendment and additions to Russian Federation Tax Code Part II. Specifically, among the amendments that have come into force are those on taxation of religious organizations. Earlier this law was adopted by the State Duma and approved by the Federation.

The new amendments take into account the fact that religious organizations are non-commercial and non-profit organizations, while their incomes are not distributed to their founders. Under the new version of the Tax Code, incomes of religious organizations received from carrying our worship as well as production and selling worship articles and religious objects are excluded from the income taxable amount.

Specifically the new version of Article 219 states that in assessing his taxable amount a taxpayer has the right to receive social tax deductions amounting to the sums transferred as donations to religious organizations for their stated activities.

Article 251 provides for the deduction from the taxable amount of the assets, including funds, gained by a religious organization through celebrating religious rites and ceremonies as well as selling religious literature and religious utensils. The designated funds received by religious organizations for carrying out their stated activities are also deducted from the taxable amount.

Article 264 adds to the production and selling expenditures the expenses of taxpayers, i.e. organizations whose property is owned by religious organizations, at the rate of income gained from selling religious literature and utensils if the funds equal to the income thus gained are transferred to these religious organizations for carrying out their stated activities. These expenditures will be deducted from the taxable amount. The list of expenditures to be deducted under Article 270 includes the expenses made by religious organizations in conducting religious rites and ceremonies and in selling religious literature and religious utensils.

Article 181 establishes that religious articles, except for wedding rings, which are used in conducting religious rites and ceremonies are not recognized as excisable jewelry. This provisions apply to relations emerged since January 1, 2002.

The text of the Law is published in Rossijskaya gazeta, May 31, 2002.