The Federal Tax Service of Russia
Published: 24.08.2011 08:51
The law “On amending the part II of the Tax Code of the Russian Federation in part of modernizing of taxation of non-commercial companies involved in charity activities” entered into force. Thin law provides wide tax advantages for the companies carrying out socially important functions. The same benefits will be given to patrons and businessmen involved in charity activities.
As reported by the “Rossiyskaya gazeta” referring to the chairman of State Duma’s committee on budget and taxes Yuri Vasilyev, the law stipulates tax deduction on income tax in amount of incomes transferred as donations. Social services for minors, seniors, disabled, homeless and other people in hard circumstances will be VAT-exempt. The same benefits will be vested to the services on detecting incapable or partly capable grown-ups requiring custody and services on selection and training of custodians. List of beneficiaries also includes companies arranging physical trainings, health and fitness and sports activities.
Besides that rendering of gratuitous services on producing and distribution of social advertisement will also be VAT-exempt. Citation of sponsors should take no more than 5% of advertising space and in TV and video products – no more than 7% of the frame and 3 seconds of time. VAT exemptions also apply to the importation of unregistered pharmaceuticals needed for certain patients treatment, stem cells and marrow for direct transplantation.
No deductions will be provided for the payments to volunteers in the framework of civil-law agreements on gratuitous works and services.