Mar 25, 2010: Tax Committee Update and 2010 Priorities

Dear AmCham members:

This letter is to update you on the general description of the activities of AmCham St. Petersburg’s Taxation Committee and outline our main priorities for 2010.

The Taxation Committee works closely with the St. Petersburg and Leningrad Oblast tax authorities, as well as with companies and investors in Russia’s Northwest Region. Together with business representatives, we monitor and discuss federal and regional tax legislation and develop new initiatives for legislative improvements. The committee consults with local officials about changes to regional legislation and the creation of new tax incentives for existing and prospective investors. Ever since it was established, the Taxation Committee has participated in drafting St. Petersburg and Leningrad Oblast legislation and amendments on tax incentives. The committee regularly monitors changes in tax legislation and application practices and meets with regional authorities and the Federal Taxation Service to discuss various issues of taxation and tax administration.

The Tax committee’s main priorities in 2010 are briefly as follows:

1. New initiatives and proposals are planned to improve the investment climate in St. Petersburg and the Northwest Region partly in connection with general trends and partly in connection with the appointment of Evgeny Elin as chairman of the Committee of Economic Development, Industrial Policy and Trade. We will take active parts in contributing to these initiatives. Specifically, we will work to improve St. Petersburg Law 81-11 “On Tax Incentives” and continue our efforts in lobbing for improvements in federal and regional tax legislation based on issues/queries raised by AmCham members.
    
2. We will contribute our efforts to suggest amendments for improvement of the recently adopted law on regulation of trade in Russia.
    
3. Moreover, we continue to meet with representatives of the St. Petersburg and Leningrad Oblast tax authorities to discuss relevant aspects of taxation, as well as with representatives of the Federal Arbitration Court of the Northwest Region to discuss judicial practice.
    
4. We are also able to make requests for rulings in relation to disputable questions of the tax law based on inquiries of AmCham members.
    
5. We are thinking about increasing cooperation with other committees of AmCham to discuss sector oriented (like IT) issues or issues that are at the edge of tax and other branches of legislation.
    
6. Finally, have plans to improve the system of information sharing with AmCham Moscow HQ. Strengthened cooperation between both chapters will help us coordinate our activities more efficiently.

The ideas and initiatives of Committee members are highly appreciated and supported, as they make our work more effective and cooperative.

Best regards,

Alisa Melkonian (KPMG), Ivan Smirnov (Baker & McKenzie)
AmCham St. Petersburg Taxation Committee Co-Chairs