03.06.09

The Federal Council has begun considering a bill entitled “On Enacting Amendments to Article 27, of the Second Part of the Tax Code of the Russian Federation.” According to the proposed amendments, agricultural sector salaries would be exempt from taxation.

At the Federal Council meeting it was noted that the provisions were meant to prevent the deterioration of agricultural sector. A high percentage of these wages are now paid in, small farm animals, birds, feed, and seeds.

Under the amendments, such expenses for benefits such as providing employee meals, attracting seasonal workers,  transport for minors to and from their place of education, as well as aid given in the form of goods to tax payers who have suffered a terrorist attack, natural disaster or other emergency will also be exempt from taxation. This last point has actually been discussed by Council since 2004.

The amendments will reduce tax revenues collected by regional and local governments by nearly 1.7 billion. However, the Federal Council hopes that the new laws will help stabilize the labor market and improve the socio-economic situation in the country.

Besides this, the senators have begun considering the Federal Law “On Enacting Amendments to Article 29, of the Second Part of the Tax Code of the Russian Federation,” The amendment supplements a list of taxpayers, who qualify for tax deductible professional education. The law would extend the right to deduct training expenses paid for siblings—but only if the sibling is a full-time student and less than 24 years old.

Translated by Alinga Consulting Group.

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Source: LEGIS.RU