VAT and Other Miscellaneous Taxes

8.2.1. Contractor assumes full and exclusive responsibility and liability for, and shall make its Affiliates and Subcontractors similarly responsible for, timely filing all returns and promptly paying when due all other taxes, levies, fees, duties, assessments and charges imposed with respect to the performance of Contractor's obligations under this Contract. Taxes referred to in this Article 8.2 include, but are not limited to, VAT, sales tax, turnover tax, property tax, consumption tax, capital tax, customs duties, import and export taxes and duties.

8.2.2. In accordance with the provisions of the PSA and RF legislation, Company, its Contractors, Affiliates and Subcontractors are exempt from Russian VAT on goods, works and services provided for the purposes of implementation of the Project.

8.2.3. Company and Contractor recognize that Russian VAT exemption is not currently applied to this Contract. As such, general VAT regime shall be applied and regular Russian VAT documentary procedures shall be adhered to as envisaged by applicable legislation. Company shall require Contractor to apply VAT exemption in accordance with Appendix H in the event that, during the Contract Term, VAT exemption becomes available.

8.2.4. Company shall not compensate Contractor, its Affiliates and Subcontractors for any potential costs associated with tax sanctions and interest that may be imposed by the tax authorities with regards to VAT and other taxes.

8.2.5. Exemption from property tax shall apply to Contractor as set out in this Article 8.2.5. Contractor shall take all reasonable steps in order to obtain the property tax exemption on its property to be used exclusively in the execution of the Work and shall comply with the Russian property tax exemption in accordance with the PSA and any applicable legislation.

8.3. Personnel Related Taxes - Contractor assumes full and exclusive responsibility and liability for, and shall make its Affiliates and Subcontractors similarly responsible for, timely filing all returns and promptly paying when due all income tax, employment tax, social security tax, pension contributions, medical insurance or other similar charges imposed upon or in connection with personnel furnished by or on behalf of Contractor in connection with the Work.

8.4. Withholding by Company - Company may, where required by applicable law, make on Contractor's behalf any of the payments required of Contractor pursuant to Articles 8.1, 8.2 and 8.3 above. In such event, Company may deduct such payments from any sum otherwise due to Contractor from Company or may otherwise require reimbursement from Contractor of such payments. Company shall provide Contractor with receipts evidencing such payments upon Contractor’s request.

8.5. Tax Minimization -Contractor shall be responsible for taking all lawful measures that are reasonably available to it to minimize liability for taxes referred to in this Article 8, including, but not limited to, those measures available to Company and its contractors under the terms of the PSA, international agreements and/or tax treaties in force with the countries having jurisdiction to levy such charges in connection with Contractor's performance under this Contract and cooperating and reasonably assisting Company in supporting claims for exemption, as well as for credits on purchases of equipment, materials, goods and services.

(Based on: current contracts)

 

ACTIVE VOCABULARY

accident insurance annual tax return application for registration balance sheet value of movable and immovable properties business receipt certificate of tax body of the foreign country certificate of incorporation   certificate of RF tax registration corporate tax deduction disposal income     dividend income dividend tax DTT (double tax treaty or double taxation agreement – DTA) flat rate home country tax liability   income tax withholding material gain non-compliance payroll tax   personal income tax personal tax Power (Letter) of Attorney profits tax property tax produced rate regressive tax   residence certificate residence status RF Tax Authorities social security tax   tax agent tax assessment tax deductions/taxable benefits tax exemption     Tax Identification Number     tax revenue tax treatment tax withholding to comply with Tax Legislation to impose to levy taxes to reimburse   to submit the documents to submit the tax declaration UST (unified social tax)

страхование от несчастных случаев годовая налоговая декларация заявка (заявление) на регистрацию балансовая стоимость движимого и недвижимого имущества   выручка, приход, доход от бизнеса свидетельство налогоплательщика иностранного государства сертификат об учреждении (свидетельство о регистрации) компании свидетельство о постановке на учет в налоговых органах РФ налоговые льготы в отношении налога с доходов компании располагаемый доход; чистый доход (доход, которым располагает лицо после уплаты налогов, взносов в систему страхования и др. вычетов) доход от дивидендов налог на дивиденды договор о двойном налогообложении (цель – уберечь доходы своих резидентов от двойного налогообложения)   единообразная ставка налога, фиксированная цена налоговая ответственность в стране постоянного пребывания (проживания) удержание подоходного налога (прямой налог на доход) материальная прибыль несоответствие, несоблюдение налог на заработную плату (базой является вся сумма заработной платы, выплачиваемая данной организацией. Основная цель – препятствовать установлению чрезмерно высокой заработной платы или чрезмерной занятости) подоходный налог на физическое лицо подушный налог; налог на движимое имущество доверенность налог на прибыль налог на имущество льготная ставка налога регрессивный налог (налог, характеризующийся снижением ставки при увеличении облагаемого дохода) сертификат постоянной регистрации статус проживания (пребывания) налоговые органы РФ налог по социальному обеспечению (в фонд социального обеспечения) налоговый агент расчет налога (налогообложение) налоговые скидки/ налоговые льготы   освобождение от уплаты налогов; налоговая льгота налоговое право; налоговое законодательство регистрация в налоговых органах ИНН (идентификационный номер налогоплательщика) налоговый статус физического лица по месту его постоянного проживания доход от налогов, налоговые поступления налоговый режим; удержание налогов соответствовать налоговому законодательству.   налагать; облагать; выставлять (санкции, налоги и т.д.) взимать налоги; облагать налогами возвращать (сумму), возмещать; покрывать; оплачивать, рамбурсировать предоставлять документы подавать налоговую декларацию единый социальный налог

IV. Translate the following contract text from Russian into English and be ready for its discussion on the basis of active vocabulary, key terms quiz, review and discussion questions.