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Accepted at the thirty ninth plenary session of Inter-parliamentary Assembly of the State Parties of the CIS (The resolution of November 29, 2013 No. 39-10)

THE MODEL TAX CODE FOR THE STATE PARTIES OF THE CIS

General part

(new edition)

This model Tax code 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

Chapter 1. Legislation on taxes and fees and other regulatory legal acts on taxes and fees

Article 1. The relations regulated by the legislation on taxes and fees

1. This Tax code (further - the Code) according to the constitution of the country establishes bases of the taxation system of the country, the imperious relations on establishment, introduction, procedure for calculation and collection of taxes and charges (payments, payments) are governed, the procedure for execution of the tax liabilities and application of the measures providing their proper execution is fixed.

On establishment, introduction and collection of customs payments, and also to the relations arising in the course of control of customs payment, appeal of acts of customs authorities, actions (failure to act) of their officials and accountability of perpetrators, the legislation on taxes and fees is not applied to the relations if other is not provided by this Code.

Article 2. Legislation on taxes and fees and other regulatory legal acts on taxes

1. The legislation on taxes and fees consists of of this Code and other regulatory legal acts about the taxes and fees (payments, payments) accepted by legislative (representative) authorities of the country according to this Code.

2. This Code installs system of taxes and fees (payments, payments), and also the general principles of taxes and fees (payments, payments), including:

1) list of taxes and fees (payments, payments);

2) the origin bases (changes, the terminations) and procedure for fulfillment of duties on tax payment and charges (payments, payments);

3) the principles of establishment, enforcement and cancellation of earlier imposed taxes;

4) the rights and obligations of taxpayers, tax authorities and other participants of the relations regulated by the legislation on taxes and fees (payments, payments).

3. Action of this Code extends to the relations on establishment, introduction, procedure for calculation and collection of charges (payments, payments) when it is directly provided by this Code.

4. The laws and other regulatory legal acts specified in this Article hereinafter are referred to as in the text of this Code as "the legislation on taxes and fees".

Article 3. Basic principles of the taxation system of the country

1. Each person shall pay legally established taxes and fees in full and at the scheduled time. The legislation on taxes and fees is based on recognition of generality and equality of the taxation. All persons shall and have the right to help the public benefit through tax payment. In case of establishment of taxes the actual capability of the taxpayer to the tax discharge is considered.

2. Taxes and fees are installed for the purpose of steady filling budget systems, financial provision of functioning and development of the country, its economic stability and prosperity.

3. Taxes and fees cannot have discrimination nature and different be applied proceeding from social, racial, national, religious and other similar criteria.

It is not allowed to establish tiered rates of taxes and fees, tax benefits depending on pattern of ownership, nationality of physical persons or the place of origin of the capital.

4. Taxes and fees shall have the economic basis and cannot be any. The taxes and fees interfering realization by citizens of their constitutional rights and freedoms are inadmissible. In case of establishment of taxes basic interests of socially unprotected segments of the population are considered.

5. It is not allowed to establish the taxes and fees breaking common economic space of the country and, in particular, directly or indirectly limiting free movement within the territory of the country of goods (works, services) or financial resources, or otherwise to limit or create obstacles of the economic activity of physical persons and organizations which is not prohibited by the law.

In case of establishment of taxes and fees neutrality of the taxation which shall not influence increase or reduction of competitiveness of the taxpayer shall be observed.

6. In case of establishment of taxes all obligatory elements of the taxation shall be determined. Acts of the legislation on taxes and fees shall be formulated so that everyone precisely knew what taxes (charges) when and in what procedure he shall pay.

7. The taxation system of the country is single in all territory of the country concerning all taxpayers and payers of charges (payments, payments).

Article 4. The institutes, concepts and terms used in this Code

1. Institutes, concepts and terms civil, family and other industries of the legislation of the country, used in this Code, are applied in that value in what they are used in these industries of the legislation if other is not provided by this Code.

2. For the purposes of of this Code and other acts of the legislation on taxes and fees are used, including, the following concepts:

the organizations - the legal entities formed according to the legislation of the country and also the foreign legal entities, the companies and other corporate educations having civil legal capacity, created according to the legislation of foreign states, the international organizations, branches and representations of the specified foreign persons and the international organizations created in the territory of the country (further - the foreign organizations);

physical persons - citizens of the country, foreign citizens and stateless persons;

individual entrepreneurs - the physical persons registered in accordance with the established procedure and performing business activity without formation of legal entity, the head of peasant farms. The notaries who are engaged in private practice, the private legal executives and lawyers who are performing lawyer activities individually, founded lawyer offices are also equated to this category. The physical persons performing business activity without formation of legal entity, but which are not registered as individual entrepreneurs in defiance of requirements of the civil legislation of the country, in case of fulfillment of duties, assigned to them by this Code having no right to refer to the fact that they are not individual entrepreneurs;

the tax consultant - person who renders consulting services to persons on application of the legislation on taxes and fees;

persons (person) - the organizations and (or) physical persons;

banks (bank) - the commercial banks and other credit institutions having the license of the Central bank of the country;

accounts (accounts) - the settlement (current) and other accounts in banks opened based on bank account agreement on which are enlisted and from which money of the organizations and individual entrepreneurs, the notaries who are engaged in private practice, the lawyers who founded lawyer offices can be spent;

personal accounts - the accounts opened in the bodies performing opening and maintaining personal accounts according to the budget legislation of the country;

the tax liability - the obligation of the taxpayer to pay certain tax (collection) in the presence of the circumstances provided by this Code or other act of the legislation on taxes and fees;

source of payment of the income to the taxpayer - the organization or physical person from which the taxpayer gains income;

shortage - the tax amount or the amount of collection which is not paid to the time established by the legislation on taxes and fees;

the certificate on registration in tax authority - the document confirming registration of the organization, physical person in tax authority respectively in the organization location, in the place of implementation by the foreign organization of activities in the territory of the country through the separate division at the place of residence of physical person;

the notification on registration in tax authority - the document confirming registration in tax authority of the organization or physical person, including individual entrepreneur on the bases established by this Code, except for the bases on which this Code provides issue of the certificate on registration in tax authority;

the transfer price - the transaction price answering to the following conditions: (a) it is created in the transactions which are made between the interconnected parties and also in the transactions made with mediation of persons which are not interdependent and it (would) be created in the transactions which are subject to control according to this Code;

transfer pricing - process of determination of the transfer price by participants of the transaction;

seasonal production - production which implementation is directly connected with natural, climatic conditions and with season. This concept is applied to the organization and the individual entrepreneur if in certain tax periods (quarter, half-year) their productive activity is not performed owing to natural and climatic conditions;

the location of separate division of the organization - the place of implementation by this organization of activities through the separate division;

the residence of physical person - the address to which the physical person is registered at the place of residence according to the procedure, established by the legislation of the country. In case of absence at physical person of the residence in the territory of the country for the purposes of of this Code the residence can be determined at the request of this physical person by the place of its stay. At the same time the place of stay of physical person the place where the physical person lives temporarily to the address to which the physical person is registered in the place of stay according to the procedure, established by the legislation of the country is recognized;

separate division of the organization - any division which is territorially isolated from it in which location stationary workplaces (stationary workplace) are equipped. Recognition of separate division of the organization by that is made irrespective of, is reflected or its creation is not reflected in constituent or other organizational and administrative documents of the organization, and from powers which allocate the specified division. At the same time the workplace is considered stationary if it is created for the term of more than one month;

accounting policy for the purposes of the taxation - the set of the methods (methods) of determination of the income and (or) expenses allowed by this Code chosen by the taxpayer, their recognitions, assessment and distribution, and also accounting of others of indicators of financial and economic activities of the taxpayer, necessary for the purposes of the taxation;

the territory of the country and other territories which are under its jurisdiction - the territory of the country, and also the territories of artificial islands, installations and constructions over which the country performs jurisdiction according to the legislation of this country and rules of international law.

3. The concepts "taxpayer", "taxation object", "tax base", "tax period" and other specific concepts and terms of the legislation on taxes and fees are used in the values determined in the relevant articles of this Code.

4. In the relations arising in connection with collection of taxes when moving goods through customs border of the Customs union the concepts determined by the customs legislation of the Customs union and the legislation of the country on customs affairs, and of the part which is not settled by it - this Code are used.

Article 5. Regulatory legal acts nation-wide (federal, republican, central) executive bodies, regional executive bodies of the country, executive bodies of local self-government (municipal authorities) about taxes and fees

Nation-wide (federal, republican, central) (further in this Code - nation-wide) executive bodies, authorized to perform functions on normative legal regulation in the field of taxes and fees and in the field of customs affairs, bodies of the regional executive authority, executive bodies local (municipal) (further in this Code - local) self-government in cases, stipulated by the legislation about taxes and fees, within the competence publish regulatory legal acts on the questions connected with the taxation and with charges which cannot change or supplement the legislation on taxes and fees.

Article 6. Operation of acts of the legislation on taxes and fees in time

1. Acts of the legislation on taxes become effective not earlier than after two months from the date of their official publication and not earlier than the 1st of the next tax period on the corresponding tax, except as specified, provided by this Article.

Acts of the legislation on charges become effective not earlier than after two months from the date of their official publication, except as specified, provided by this Article.

The nation-wide laws making changes to this Code regarding establishment of new taxes and (or) charges and also acts of the regional legislation on taxes and fees and the regulatory legal acts of representative bodies of municipalities imposing taxes become effective not earlier than January 1 of the year following after year of their acceptance, but not earlier than four months from the date of their official publication.

The acts of the legislation on taxes and fees specified in Items 3 and 4 of this Article can become effective from the date of their official publication if directly provide it.

2. Acts of the legislation on taxes and fees of establishment of new taxes and fees, of cancellation of the operating taxes and fees, and also of modification and amendments in the existing acts regarding determination of elements of taxes which are becoming effective since the beginning of the next financial year are accepted before adoption of law on the budget of the state for the next financial year.

Modification and amendments in the acts of the legislation on taxes and fees on the specified questions assuming their entry into force within the current financial year is allowed if other is not provided by this Article, only along with introduction in accordance with the established procedure of corresponding changes and amendments in the law on the budget of the state the current financial year.

3. The acts of the legislation on taxes and fees establishing the new taxes and (or) charges raising the tax rates, the amount of charges establishing or aggravating responsibility for violation of the legislation on taxes and fees, establishing new obligations or otherwise the worsening situation of taxpayers or payers of charges, and also other participants of the relations regulated by the legislation on taxes and fees, retroactive force is no.

4. The acts of the legislation on taxes and fees eliminating or mitigating responsibility for violation of the legislation on taxes and fees or establishing additional guarantees of protection of the rights of taxpayers, payers of charges, tax agents, their representatives have retroactive force.

5. The provisions provided by this Article extend also to regulatory legal acts about taxes and fees of nation-wide executive bodies, executive bodies of regions, local government bodies.

6. The acts of the legislation establishing customs duties are regulated by the customs legislation of the Customs union and (or) the legislation of the country on customs affairs.

Article 7. Discrepancy of regulatory legal acts about taxes and fees to this Code

1. The regulatory legal act about taxes and fees is recognized not corresponding to this Code if such act:

1) it is published by the body which does not have the right to issue acts of this sort according to this Code or published with violation of established procedure of the publication of such acts;

Cancels 2) or limits the rights of taxpayers, payers of charges, tax agents, their representatives or power of tax authorities, customs authorities established by this Code;

3) enters the obligations which are not provided by this Code or changes certain this Code content of obligations of participants of the relations regulated by the legislation on taxes and fees, other persons whose obligations are established by this Code;

4) prohibits the actions of taxpayers, payers of charges, tax agents, their representatives permitted by this Code;

5) prohibits the actions of tax authorities, customs authorities, their officials permitted or ordered by this Code;

Resolves 6) or allows the actions prohibited by this Code;

7) changes the bases established by this Code, conditions, the sequence or operations procedure of participants of the relations regulated by the legislation on taxes and fees, other persons whose obligations are established by this Code;

8) changes content of the concepts and terms determined in this Code or uses these concepts and terms of other value, than they are used in this Code;

9) otherwise contradicts the general beginnings and (or) literal sense of specific provisions of this Code.

2. The regulatory legal acts about taxes and fees specified in Item 1 of this Article are recognized not corresponding to this Code in the presence of at least one of circumstances, stipulated in Item 1 this Article.

3. Recognition of regulatory legal act not corresponding to this Code is performed judicially if other is not provided by this Code. The government of the country, and also other executive body or executive body of local self-government which adopted the specified act or their higher bodies has the right to repeal this act before judicial review or to make necessary changes to it.

4. Concerning the regulatory legal acts which are regulating procedure for collection of taxes, subject to payment in connection with movement of goods through customs border of the Customs union (further in this Code - the Customs union), the provisions established by the customs legislation of the Customs union and the legislation of the country on customs affairs are applied.

Article 8. Procedure for calculation of the terms established by the legislation on taxes and fees

1. The terms established by the legislation on taxes and fees are determined calendar date, specifying on event which shall step inevitably, or on action which shall be made, or period of time which is estimated for years, quarters, months or days.

2. The current of term begins next day after calendar date or approach of event (action making) which determines its beginning.

3. The term estimated for years expires in the corresponding month and number of the last year of term.

At the same time year (except for calendar year) any period of time consisting of 12 months following in a row is recognized.

4. The term estimated quarters expires in the last day of the last month of term.

At the same time quarter is considered to equal three calendar months, counting of quarters is conducted since the beginning of calendar year.

5. The term estimated for months expires in the corresponding month and number of the last month of term.

If the termination of term falls on month in which there is no corresponding number, then term expires in the last day of this month.

6. The term determined in the days is estimated in the working days if term is not established in calendar days. At the same time day which is not recognized according to the legislation of the country in the output and (or) non-working holiday is considered the working day.

7. In cases when the last day of term falls on the day recognized according to the legislation of the country in the output and (or) non-working holiday in the afternoon of the termination of term the next working day following it is considered.

8. Action for which making the fixed term, can be executed till 24 o'clock the last day of term.

If documents or money were handed over in the organization of communication till 24 o'clock the last day of term, then term is not considered passed.

Article 9. Action of international treaties on the tax matters

1. If the international treaty ratified by the country, containing the provisions concerning the taxation and charges establishes other rules and regulations than provided by this Code and regulatory legal acts adopted according to it about taxes and (or) charges, then rules and regulations of the international treaty are applied.

2. The rule, stipulated in Item 1 this Article, is not applied to the tax benefits and benefits provided by the country according to the international treaty to the tax resident of the country with whom this agreement is signed if this tax resident is used for receipt of such tax benefits and (or) benefits by other person who is not the tax resident of the country with whom the specified international treaty is signed, and not having the right to such tax benefits and benefits.

Article 10. Concept of taxes and fees

1. The tax is understood as the obligatory, individually certain bezekvivalentny sum of money which is legally established by the state subject to payment in nation-wide, regional and (or) local budgets.

2. Collection (payment, payment) is understood as the compulsory contribution levied from the organizations and physical persons which payment is one of making conditions concerning payers of charges by nation-wide bodies, local government bodies, other authorized bodies of legally significant actions, including provision of certain rights or issue of permissions (licenses).

Article 11. Participants of the relations regulated by the legislation on taxes and fees

Participants of the relations regulated by the legislation on taxes and fees are:

1) the organizations and physical persons recognized according to this Code taxpayers or payers of charges;

2) the organizations and physical persons recognized according to this Code tax agents;

3) tax authorities (nation-wide executive body, the representative for control and supervision in the field of taxes and fees, and its territorial authorities);

4) customs authorities (the nation-wide executive body authorized in the field of customs affairs, the customs authorities subordinated to it);

5) tax consultants;

6) other persons to whom the laws of the country assign obligations on taxation and (or) charges in the budget.

Chapter 2. System of taxes and fees

Article 12. Types of tax and charges

1. In the country the nation-wide, regional and local taxes and charges according to administrative-territorial state system are established.

2. The taxes and fees established by this Code and obligatory to payment in all territory of the country are recognized nation-wide if other is not stipulated in Item the 7th this Article.

3. The taxes and fees established according to this Code regulatory legal acts of legislature of the regional power and obligatory to payment in all territory of the corresponding regional formations of the country are recognized regional if other is not stipulated in Item the 7th this Article.

In case of establishment of regional taxes by legislature of the government of regions of the country are determined according to the procedure and limits which are provided by this Code, the following elements of the taxation: the tax rates, procedure and the due dates for tax payment if these elements of the taxation are not established by this Code. Other elements of the taxation on regional taxes and taxpayers are determined by this Code.

Regional taxes become effective and stop to act on the territories of regions of the country according to this Code and the laws of regions of the country.

4. The local taxes taxes which are established by this Code and regulatory legal acts of representative bodies of municipalities about taxes are recognized and are obligatory to payment in the territories of the respective municipalities if other is not provided by this Item and Item 7 of this Article.

The local taxes become effective and stop to act on the territories of municipalities according to this Code and regulatory legal acts of representative bodies of municipalities about taxes.

In case of establishment of the local taxes by representative bodies of municipalities are determined according to the procedure and limits which are provided by this Code, the following elements of the taxation: the tax rates, procedure and the due dates for tax payment if these elements of the taxation are not established by this Code. Other elements of the taxation on the local taxes and taxpayers are determined by this Code.

5. The nation-wide, regional and local taxes and charges are cancelled by this Code.

6. The nation-wide, regional or local taxes and charges which are not provided by this Code cannot be established.

7. This Code sets special (special) tax regimes which can provide the taxes which are not specified in article 13 of this Code the procedure for establishment of such taxes, and also procedure for enforcement and application of special (special) tax regimes are determined.

Article 13. Structure of taxes and fees

1. Treat the main taxes and fees of the country, including:

1) value added tax;

2) excises;

3) income tax (income) of the organizations;

4) the income tax from physical persons;

5) customs duty;

6) tax on use of natural resources and environment;

7) property tax;

8) land tax;

9) state fee;

10) charges (payments, payments) regulated by the tax legislation of the country.

The country establishes the structure of taxes and fees.

2. Division of taxes and fees into types is performed by the national legal system on taxes and fees according to administrative-territorial state system.

Article 14. Special (special) tax regimes

1. Special (special) tax regime the special system of the taxation enacted by the regulatory legal act of the legislation on taxes and fees about specific special (special) tax regime adopted according to this Code and other acts of the legislation on taxes and fees and also submissions of tax statements on them is recognized.

2. The special (special) tax regime can provide special procedure for calculation and tax payment and charges and (or) replacement of the separate taxes and fees which are subject to payment with the single payment which is subject to payment in budget system.

3. Special (special) tax regimes are set, including, for small business entities, criteria for reference to which are established by the national legal system.

4. The special (special) tax modes are set by this Code and applied in cases and procedure which are provided by this Code and other acts of the legislation on taxes and fees.

5. Special (special) tax regimes can provide release from obligation on payment of the separate taxes and fees provided by this Code.

Article 15. Information on the tax legislation

1. The regulatory legal acts regulating the tax matters are subject to obligatory publication in official publications.

2. Information and copies of the laws, other regulatory legal acts on establishment, change and cancellation of the regional and local taxes and charges, special tax regimes go public authorities of regions of the country and local government bodies to nation-wide financial body, and also to financial bodies of the respective regions of the country and territorial tax authorities.

3. Information on the operating nation-wide taxes and fees, special (special) tax regimes is located, including, in public nation-wide information system and information and telecommunication networks on the official site of the government of the country.

4. The procedure for official publication of information on the regional and (or) local taxes and charges is established by the national legal system.

5. The possibility of free acquaintance with regulatory legal acts on taxes and fees shall be provided to physical persons and representatives of the organizations.

Article 16. General terms of establishment of taxes and fees

1. The tax is considered established only in that case when taxpayers and elements of the taxation are determined, namely:

taxation object;

tax base;

tax period;

tax rate (rates);

procedure for calculation of tax;

procedure and payment due dates of tax.

2. Tax benefits and the bases for their use by the taxpayer can be also provided in necessary cases in case of establishment of tax in the act of the legislation on taxes and fees.

3. In case of establishment of charges their payers and elements of taxation in relation to specific charges are determined.

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