Tax News Reporter - 4/97 - 3 June 1997 - Road Fund Law Amendments

The Law brought the road users tax rates in accordance with the Law on the Federal Budget in particular, establishes the maximum 2.5% rate on gross margin for wholesale companies . The Law is effective from the date of its publication, which was 29 May 1997, and should overrule the rates established by the Moscow City Law on the rates of the road fund taxes (see our Tax News Reporter of 20 May 1997).
Federal Law of 26 May 1997 #82-FZ "On amendments and additions to the RF Law "On Road Funds in the RF""

Securities market / The 50% borrowing limitation abolished
An order of the Ministry of Finance states that since the Federal Securities Commission recently introduced new regulations on the securities market some old regulatory letters of MinFin are abolished. Among the 13 abolished letters is Letter 53 of 6 July 1992 year "On rules for concluding and registration of deals with securities". According to this letter borrowed funds could not exceed 50% in cost of purchased securities. Now with the cancellation of the letter 53 there is no longer such a requirement.
Order of MinFin 18 of 25 February 1997 "On cancellation of some regulation documents"

Corporate securities / Transitional provisions
From 21 January 1997 interest income on securities issued by enterprises (bills of exchange, deposit certificates, etc.) should be taxed at the standard rate of profits tax. If withholding tax of 15% was withheld on payments of interest on such securities after the Law was amended a credit against the outstanding tax liability is available for these amounts on presentation of certain documents to the tax authorities.
Letter of STS of 23 April 1997 # ‚...-6-36/316
"On payment of profits tax on income from securities issued by enterprises"

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