Accepted at the forty ninth plenary session of Inter-parliamentary Assembly of the State Parties of the CIS
(The resolution of April 19, 2019 No. 49-1)

THE MODEL TAX CODE FOR THE STATE PARTIES OF THE CIS

Third part "Tax administration"

This third part of the model Tax code of the State Parties of the CIS is used for development of national legal systems of the State Parties of Inter-parliamentary Assembly of the CIS in the tax sphere and has advisory nature.

Section I. General provisions about tax administration

Chapter 1. Bases of tax administration

Article 1. Tax administration

Tax administration consists in implementation by tax authorities of supervision and control of compliance with law about taxes and fees (preceding, from statement of the taxpayer on accounting before acceptance from it tax statements, and subsequent, i.e. the approach of terms of submission to tax authorities of tax statements happening later), application of methods of ensuring execution of the tax liability which is not fulfilled in time and measures of recovery by enforcement of tax debt, implementation of measures of stimulation of the taxpayer on voluntary and timely execution of the tax liability, and also rendering the state services to taxpayers (payers of charges, tax agents, their representatives) in the field of the taxation.

Regulations on tax administration also turn on mechanisms of the prevention and permission of tax disputes.

Provisions of this part of the Code extend to taxpayers, payers of charges and tax agents, and also to payers of fees in off-budget funds if it is provided by the national legal system.

Article 2. Tax secret

1. Any information about the taxpayer (the payer of charges, the tax agent) received by tax authority, except for the data is tax secret:

1) being public, including become those with the consent of the specified taxpayer (the payer of charges, the tax agent);

2) not being confidential information according to the national legal system or subject to publication (including on the information and telecommunication Internet) according to the national legal system. At the same time tax authorities do not provide at the request of interested persons the information which is subject to publication according to the national legal system, except as specified when the interested person proves lack of these data in public access;

3) about registration data of the taxpayer (the payer of charges, the tax agent) according to the national legal system;

4) about availability (absence) of registration as the taxpayer (the payer of charges, the tax agent) of the nonresident performing activities through permanent organization (permanent mission), branch, representation or without formation of permanent organization (permanent mission);

5) about availability of tax debt of the taxpayer (the payer of charges, the tax agent);

6) containing in the decisions of the courts which took legal effect.

2. The information about the taxpayer (the payer of charges, the tax agent) which is tax secret cannot be provided by tax authorities to other person (group of people) without written permission of the taxpayer (tax agent) if other is not established by this Article.

3. Tax authorities represent the information about the taxpayer (the payer of charges, the tax agent) which is tax secret without receipt of the written permission of the taxpayer (the payer of charges, the tax agent) in the following cases:

1) to person involved to conducting tax audit as an expert, the specialist, the translator on condition of observance by such person of the mode of tax secret;

2) to law enforcement and other state bodies within their competence established by the national legal system and according to the procedure established by the national legal system;

3) to court during hearing of cases about the determination of the tax liability of the taxpayer (the payer of charges), obligation of the tax agent on calculation, deduction and transfer of taxes according to the procedure established by this Code or responsibility for tax offenses;

4) to the legal executive within its competence established by the national legal system and according to the procedure established by the national legal system;

5) to tax or law enforcement agencies of other states, the international organizations according to the international treaties ratified by the state and also the agreements signed by the state with the international organizations;

6) to other authorized state bodies within their competence established by the national legal system and according to the procedure established by the national legal system.

4. The officials of tax authorities and other persons who received from tax authorities of the information about the taxpayer (the payer of charges, the tax agent), being tax secret, having no right to spread such information both during work in the specified bodies and after the dismissal, and case of temporary attraction to work - both in case of execution of the obligations, and after completion of their accomplishment.

5. Loss of the documents containing the data which are tax secret or disclosure of such data attract the responsibility provided by the national legal system.

Article 3. General requirements to national standards of the state services in the field of the taxation

At the request of the taxpayer tax authorities shall render the state services in the field of the taxation consisting in provision to the taxpayer of information, documents or the software for accomplishment of the tax liability.

The list of the state services rendered by tax authorities is established by the national legal system taking into account Article 75 of this part of the Code.

Nation-wide executive bodies can establish standards and regulations of the state services rendered by tax authorities for improvement of quality and overall performance of tax authorities.

Article 4. Publication of tax statistics

Tax authorities shall publish the generalized data for each calendar year over the country in general and on each of its regions or regional authorities, including:

1) about tax revenues on each tax (to collection, other obligatory payment in the budget and off-budget funds);

2) about the amounts of not arrived taxes (charges, other obligatory payments in the budget and off-budget funds) owing to the provided privileges and preferences;

3) about the number of taxpayers on each tax (collection, other obligatory payment).

Section II. Tax control

Chapter 2. Statement of taxpayers on accounting, change of their data, their removal from accounting

Article 5. Registration of information about the physical person, organization, structural division of the organization

1. Tax authorities register the information about taxpayers, including about:

1) physical person, including foreigner or stateless person;

2) legal resident person and his structural divisions;

3) the legal entity created according to the legislation of foreign state, the place of effective management (the location of the actual governing body) of which is in the country;

4) structural division of legal nonresident person;

5) the legal nonresident person performing activities in the country through permanent organization (permanent mission) without opening of structural division;

6) the nonresident performing activities through the dependent agent who is considered as permanent organization (permanent mission) of the nonresident;

7) the diplomatic and equated to it representation of foreign state accredited in the state;

8) other cases provided by the national legal system on taxes and fees.

2. Data of the taxpayer include the data allowing to identify both the taxpayer, and feature of its status according to the national legal system. Can join in data of the taxpayer:

1) surname, name, middle name and nationality of the taxpayer - physical person;

2) the name of the taxpayer - the legal entity;

3) surname, name, middle name and nationality of the head of the taxpayer - the legal entity;

4) the address and contact information of the taxpayer used in case of interaction with tax authorities;

5) identification taxpayer number;

6) features of registration of the taxpayer (status of the tax resident, status of the payer of certain taxes (user of certain tax regimes, tax benefits), status of structural division of the legal entity, status of permanent organization (permanent mission) and others);

7) other data provided by national regulatory legal acts.

3. The procedure and features of registration of information about the taxpayer are established by national regulatory legal acts.

4. The information about physical persons containing in the national register of individual identification numbers is transferred by the authorized state body performing forming of identification numbers and maintaining national registers of identification numbers to tax authorities.

5. The national legal system on taxes and fees can establish features of the procedure of registration of separate categories of physical, legal entities, structural divisions of the legal entity, including:

1) individual entrepreneurs;

2) taxpayers (payers of the charges) performing separate types of activity;

3) taxpayers in the location of the taxation objects and (or) objects connected with the taxation;

4) the taxpayers having the right to tax benefits;

5) nonresidents.

6. The national legal system on taxes and fees can also establish features of the procedure of registration of the largest taxpayers, including creation of separate tax authorities for implementation of tax administration in their attitude, and criterion of reference of the organizations towards those. Criteria of reference of the organizations to the largest taxpayers can be connected only with amount of activities of the taxpayer (including threshold values of amount of the gained income, asset costs and (or) the amounts of payable taxes).

Article 6. Statement on registration accounting of the electronic taxpayer

1. The electronic taxpayer - the taxpayer (the payer of charges, the tax agent) interacting with tax authorities by electronic method on the basis of the tax statement for the registration accounting of the electronic taxpayer according to the procedure established by this Code.

2. Statement of physical person, legal entity, its structural divisions on registration accounting as the electronic taxpayer has voluntary nature and is made after passing of registration in tax authority as the taxpayer or along with it.

3. For statement on registration accounting the taxpayer (the payer of charges, the tax agent) submits the tax application for registration accounting of the electronic taxpayer in tax authority on paper in attendance procedure or electronically.

Submission of the tax statement for registration accounting of the electronic taxpayer to tax authorities is the consent of the taxpayer (the payer of charges, the tax agent) to exchange of electronic documents by means of transfer on the network of telecommunications providing the guaranteed delivery of messages including on receipt of notifications of the tax authorities provided by the national legal system on taxes and fees.

4. After statement on registration accounting of the electronic taxpayer the tax authority issues to the taxpayer (the payer of charges, the tax agent, their representative) the digital signature - the sequence of symbols electronically created by digital signature facilities and intended for accession to other information electronically (the signed information), and serving for determination of person which signed information.

Issue of the digital signature can be made by transfer to the taxpayer (the payer of charges, the tax agent, their representative) of the electronic medium of information with information (software) necessary for signing of electronic documents, or by forming of such information (software) in personal account of the taxpayer.

5. By transfer by the taxpayer (the payer of charges, the tax agent, their representative) to tax authority the electronic documents signed by the digital signature are recognized equivalent to the paper documents signed by the sign manual and (or) under seal the taxpayer.

6. The national legal system on taxes and fees can establish features of the procedure of statement on registration accounting of the electronic taxpayer.

7. The national legal system can establish additional requirements to the digital signature used by the taxpayer (the payer of charges, the tax agent, their representative) to information transfer in tax authority.

The nation-wide executive body, the representative for control and supervision in the field of taxes and fees, determines the procedure of issue to the taxpayer of the digital signature.

Article 7. Replacement and cancellation of the digital signature

1. The taxpayer (the payer of charges, the tax agent) has the right to submit the tax plea of nullity of the digital signature or its replacement in tax authority in cases:

1) decision makings about refusal of use of the digital signature;

2) losses or damages of the electronic medium of information containing information (software) necessary for signing of electronic documents - in case of issue of the digital signature on such carrier;

3) others, the provided national legal system on taxes and fees.

2. Replacement and cancellation of the digital signature is made by tax authority according to the procedure determined by nation-wide executive body, the representative for control and supervision in the field of taxes and fees.

3. Cancellation of the digital signature stops the right of the taxpayer (the payer of charges, the tax agent) to exchange with tax authority of electronic documents by means of transfer on the network of telecommunications providing the guaranteed delivery of messages.

4. Cancellation of the digital signature of the taxpayer (the payer of charges, the tax agent) is made by tax authority without tax statement in the following cases:

1) exceptions of the taxpayer (payer of charges, tax agent) of the state database of taxpayers;

2) recognitions of the taxpayer (the payer of charges, the tax agent) by the pseudo-company based on the judgment which took legal effect - from the date of receipt by tax authority of such judgment;

3) recognitions of invalid state registration of the taxpayer (the payer of charges, the tax agent) based on the judgment which took legal effect - from the date of receipt by tax authority of such judgment.

Article 8. Obligatory statement on registration accounting on the value added tax

1. Legal entities - the residents, nonresidents performing activities in the country through structural division, individual entrepreneurs according to the procedure, established by this Article, except for are subject to obligatory statement on registration accounting on the value added tax:

1) public institutions;

2) structural divisions of legal entities - residents;

3) persons, tax-exempt on value added according to special tax regimes.

2. The persons which are subject to statement on registration accounting on the value added tax, specified in Item 1 of this Article shall submit to tax authority the application for statement for registration accounting on the value added tax if the size of their taxable turnover determined according to the national legal system on taxes and fees, the accruing result exceeds the threshold established by the national legal system on taxes and fees.

Such application is submitted no later than ten working days from the date of the termination of month in which there was exceeding of the established threshold of taxable turnover.

3. The size of taxable turnover is determined by the accruing result:

1) newly created legal entities - residents, structural divisions of legal entities - nonresidents - from the date of the state (accounting) registration in judicial authorities;

2) the physical persons who again got up on registration accounting in tax authorities as individual entrepreneurs - from the date of statement on registration accounting in tax authorities;

3) the taxpayers struck off the registration register on the value added tax based on the decision of tax authority current calendar year - from the date following date of removal from registration accounting on the value added tax based on the decision of tax authority;

4) other taxpayers - since January 1 of the current calendar year.

4. The tax authority within one working day from the date of submission of the tax statement for statement on registration accounting on the value added tax makes statement of the taxpayer on registration accounting on the value added tax with forming of the certificate on statement on registration accounting on the value added tax.

5. Persons specified in Item 1 of this Article become taxpayers on value added from the date of filing of application.

6. In case of identification of the person specified in Item 1 of this Article, who illegally did not submit the application for statement on registration accounting on the value added tax, the tax authority no later than five working days from the moment of identification of such taxpayer sends it the notification on elimination of violations of the national legal system on taxes and fees.

7. Sanctions for illegal non-presentation of the statement for statement on registration accounting on the value added tax, and also for non-execution of the notification of tax authority, are established by the national legal system.

8. The nation-wide executive body, the representative for control and supervision in the field of taxes and fees, determines procedures of filing of application about statement on registration accounting by the value added tax, statements on registration accounting on the value added tax, issues to the taxpayer of the certificate on statement on registration accounting on the value added tax and the direction of the notification on elimination of violations.

Article 9. Voluntary statement on registration accounting on the value added tax

1. Persons specified in Item 1 of Article 8 of this part of the Code whose taxable turnover does not exceed threshold established by the national legal system on taxes and fees for obligatory statement on registration accounting on the value added tax, have the right of voluntary statement to registration accounting on the value added tax.

2. Persons having and persons interested to perform the right of voluntary statement to registration accounting on the value added tax, submit to tax authority the application for statement for registration accounting on the value added tax in case of primary registration of the taxpayer or afterwards.

3. The tax authority within one working day from the date of submission of the tax statement for statement on registration accounting on the value added tax makes statement of the taxpayer on registration accounting on the value added tax with forming of the certificate on statement on registration accounting on the value added tax.

4. Persons who submitted the application for voluntary statement for registration accounting on the value added tax become taxpayers on value added from the date of filing of application, and in case of primary registration of the taxpayer - from the date of state registration of the taxpayer.

Article 10. The certificate on statement on registration accounting on the value added tax

1. The certificate on statement on registration accounting on the value added tax certifies the fact of statement of the taxpayer on registration accounting on the value added tax, is termless and it is represented on paper or in electronic form, the official of registering body certified by the digital signature. The form of the certificate is established by nation-wide executive body, the representative for control and supervision in the field of taxes and fees.

2. The certificate on statement on registration accounting on the value added tax contains the following obligatory details:

1) the name and (or) surname, name, middle name (in case of its availability) the taxpayer;

2) identification number (in case of its availability according to the national legal system);

3) date of statement of the taxpayer on registration accounting on the value added tax;

4) identification number of the taxpayer on value added;

5) the name of the tax authority which created the certificate.

3. In case of removal of the taxpayer from registration accounting on the value added tax the certificate on statement on registration accounting on the value added tax is cancelled and it is considered invalid.

4. Replacement of the certificate on statement by registration accounting on the value added tax is made by tax authority within three working days in case of change of surname, name, middle name (if it is specified in the identity document) or the name of the taxpayer on value added - based on the statement of the taxpayer and supporting documents or data of national registers of identification numbers on change of surname, name, middle name (if it is specified in the identity document) or the name of the taxpayer.

Article 11. Registration of the foreign organizations as the taxpayer on value added when rendering services by them electronically

1. For the purpose of of this Code rendering services rendering services through information and telecommunication network, including through the information and telecommunication Internet electronically is recognized (further - the Internet), it is automated with use of information technologies. Treat such services:

1) provision of the rights to use programs for electronic computers (including computer games), databases through the Internet, including by provision of remote access to them, including updates to them and additional functionality;

2) rendering promotion services on the Internet, including with use of programs for the electronic computers and databases functioning in the Internet, and also provision of the advertizing space (space) on the Internet;

3) rendering services in placement of offers on acquisition (realization) of goods (works, services), property rights on the Internet;

4) rendering through the Internet of services in provision of the technical, organizational, information and other capabilities performed with use of information technologies and systems for establishment of contacts and the conclusion of transactions between sellers and buyers (including provision of the trading floor functioning on the Internet in real time on which potential buyers offer the price by means of the automated procedure and the party are informed on sale by the created message sent automatically);

5) providing and (or) maintenance of business or personal presence on the Internet, support of electronic resources of users (the websites and (or) pages of the websites on the Internet), ensuring access to them of other users of network, provision to users of possibility of their modification;

6) storage and information processing provided that person which provided this information has to it access through the Internet;

7) provision in real time computing capacity for placement of information in information system;

8) provision of domain names, rendering services of hosting;

9) rendering services in administration of information systems, websites on the Internet;

10) rendering the services performed by automatic method through the Internet in case of data entry by the buyer of service, the automated services in search of the data, their selection and sorting according to requests, provision of the specified data to users through information and telecommunication networks (in particular, reports of stock exchange in real time, implementation in real time machine translation);

11) provision of the rights to use e-books (editions) and other electronic publications, information, educational materials, graphical representations, pieces of music with the text or without text, audiovisual works through the Internet, including by provision of remote access to them for viewing or listening through the Internet;

12) rendering services in search and (or) representation to the customer of information on potential buyers;

13) provision of access to search engines on the Internet;

14) maintaining statistics on the websites on the Internet.

2. For the purpose of of this Code the following transactions do not belong to the services electronically specified in paragraph one of this Item, in particular:

1) sales of goods (works, services) if in case of the order through the Internet delivery of goods (performance of works, rendering services) is performed without use of the Internet;

2) realization (assignment of rights on use) programs for electronic computers (including computer games), databases on material carriers;

3) rendering consulting services in e-mail;

4) rendering services in provision of Internet access.

3. Registration as the taxpayer on value added of the foreign organization rendering to the physical persons who are not individual entrepreneurs, the services electronically specified in Item 1 of this Article which place of realization the territory of the country is recognized (except for the foreign organization rendering the specified services through the separate division located in the territory of the country), and perfroming calculations directly with the specified physical persons is performed by tax authority based on the statement for registration and other documents which list affirms the Ministry of Finance of the country.

The application for registration is submitted by the foreign organizations specified in the previous paragraph to tax authority no later than 30 calendar days from the date of the beginning of rendering the specified services.

Article 12. Registration as the taxpayer of severance tax

1. Taxpayers are subject to registration as the taxpayer of severance tax in the location of the subsoil plot provided to the taxpayer in use according to the national legal system if other is not stipulated in Item 2 these Articles, within 30 calendar days from the moment of state registration of the license (permission) to use of the subsoil plot. At the same time for the purposes of this Article the location of the subsoil plot provided to the taxpayer in use is determined according to the national legal system.

The tax authority in the same time shall issue (to direct) to the organization the notification on registration in tax authority confirming registration as the taxpayer of severance tax.

2. The taxpayers performing mining on the continental shelf of the country in exclusive economic zone of the country, and also outside the territory of the country if this production is performed in the territories which are under country jurisdiction (including leased from foreign states or used based on the international treaty) on the subsoil plot provided to the taxpayer in use are subject to registration as the taxpayer of severance tax in the location of the organization or for the residence of physical person.

3. Features of registration of taxpayers as taxpayers on mining are determined by the Ministry of Finance of the country.

Article 13. Change and amendment of registration data in the state database of taxpayers

1. Tax authorities perform modification and amendments in the registration data of the taxpayer (the payer of charges, the tax agent) provided in case of registration as the taxpayer (the payer of charges, the tax agent) based on the statement of the taxpayer (the payer of charges, the tax agent) and supporting documents or data of national registers of identification numbers on change of surname, name, middle name (if it is specified in the identity document) or the name of the taxpayer (the payer of charges, the tax agent).

The national legal system on taxes and fees can also establish procedures of changes and amendments of these taxpayers on the basis of information obtained from other sources. At the same time the taxpayer shall be notified on modification and amendments and to have opportunity to specify the corresponding data.

2. Change of information about the chief accountant and (or) about the ranking officer by calculations with the budget, phone number, the e-mail address of the legal entity, its structural division is performed based on the statement of the taxpayer (the payer of charges, the tax agent).

3. Change of information about the head of the legal entity is performed based on the statement of the taxpayer (the payer of charges, the tax agent) with appendix of notarially certified copy of the decision of general meeting of participants (shareholders) of the legal entity or the single member (shareholder) of the legal entity about appointment of executive body of the legal entity.

Change of information about the head of the structural unit of the legal entity is performed based on the statement of the taxpayer (the payer of charges, the tax agent) with appendix of notarially certified copy of the decision of authorized body of the legal entity on appointment of the head of the structural unit of the legal entity or other document confirming it powers.

In case of submission of notarially certified copies of the documents constituted in foreign language transfer availability on state or officially the used language is obligatory.

4. Change of data on bank accounts of the taxpayer (the payer of charges, the tax agent) is performed based on data of the banks or the organizations performing separate types of the banking activities provided according to the procedure and term which are established by the national legal system on taxes and fees.

5. The statement for modification and amendments in registration data of the taxpayer (the payer of charges, the tax agent) is submitted in tax authority no later than ten working days from the moment of emergence of changes.

6. The nation-wide executive body, the representative for control and supervision in the field of taxes and fees, determines the application form about modification and amendments in registration data of the taxpayer (the payer of charges, the tax agent) and the procedure of modification of registration data of the taxpayer (the payer of charges, the tax agent).

Article 14. Exception of the taxpayer of the state database of taxpayers

1. Tax authorities exclude the taxpayer (the payer of charges, the tax agent) from the state database of taxpayers based on data of national registers of identification numbers, authorized state bodies or according to the statement of the taxpayer (the payer of charges, the tax agent, their representatives) for the reason:

1) death or announcements dead of physical person;

2) departure of physical person on the permanent residence to other country on condition of removal from registration accounting at the place of residence;

3) the terminations by the foreigner or stateless person of activities in the country and (or) the terminations of the rights to the taxation objects at the foreigner, the stateless person;

4) the terminations of activities of legal entities, their structural divisions, on condition of their removal from accounting registration or exception of the national register of identification numbers;

5) the termination of activities of the place of effective management (the location of the actual governing body) of the legal entity created according to the legislation of foreign state;

6) the terminations by the nonresident of activities through permanent organization (permanent mission), including the terminations of activities of the nonresident through the dependent agent;

7) the termination of activities of the diplomatic and equated to it representation of the foreign state accredited in the country;

8) other, provided by the national legal system on taxes and fees.

2. The exception of the taxpayer (the payer of charges, the tax agent) of the state database of taxpayers is made by tax authority on condition of absence unexecuted the taxpayer (the payer of charges) of the tax liabilities, taxation objects and (or) objects connected with the taxation, which are in the territory of the country or absence unexecuted the tax agent of obligations on calculation, deduction and transfer of taxes.

3. In the presence of unexecuted the taxpayer (the payer of charges) of the tax liabilities or unexecuted the tax agent of obligations on calculation, deduction and transfer of taxes the tax authority sends to the taxpayer (the payer of charges, the tax agent, their representatives) the notification on need of execution of the tax liability.

After obtaining and verification of data on execution of such tax liability the tax authority excludes the taxpayer (the payer of charges, the tax agent) from the state database of taxpayers without requirement of the new statement.

4. The national legal system on taxes and fees can provide obligation of tax authorities according to the notification of other authorized state bodies on exception of nonresidents of the state database of taxpayers.

Article 15. Removal from registration accounting on the value added tax

1. For removal from registration accounting on the value added tax the taxpayer for value added has the right to submit to tax authority the corresponding application in case of simultaneous observance of the following conditions if other is not provided by this Article:

1) for the calendar year preceding year of submission of the tax statement, the size of taxable turnover did not exceed the threshold determined according to the national legal system on taxes and fees;

2) from the beginning of the current calendar year at which such tax application is submitted the size of taxable turnover did not exceed the threshold determined according to the national legal system on taxes and fees.

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