Fill in the following prepositions where necessary. on in (x2)   from for

on          in (x2)             from       for        

up          with                 to

   

Projected reforms in personal taxation

The Key Trends propose equalizing taxation for three types of investment activity: investments (1) _______ securities, real estate transactions, and opening bank deposits. The document outlines four approaches that may help achieve this objective:

1) granting tax deductions on income derived (2) _______ sales of securities and units of unit investment funds within the prescribed limits;

2) change the limits on exempted interest accrued on bank deposits;

3) changing the approach (3) ______ granting benefits related to real estate sales (exempting the entire income amount if the individual taxpayer owned no more than three real properties at the date of sale);

4) introducing the concept of “individual investment account” in law and developing a procedure (4) _______ granting tax benefits for using such accounts.

Plans also call for introducing a property-related PIT deduction for housing purchases (5) ______ a maximum possible amount of RUB 3 million per taxpayer regardless of how many properties or property shares are acquired. Therefore, individuals will be entitled to claim property-related deductions with the tax authorities more than once in their lifetime (6) ______ until they reach the deduction threshold.

A real estate tax has been also introduced. It is based (7) ______ the cadastral value of the property. All regions of the Russian Federation will be subject to a real estate tax according to the cadastral value by 2020.

It is important to note that the 13% PIT rate will not change (8) _______ the foreseeable future.

 

Exercise 7. Word formation.

Complete these sentences using the base word given at the end of each sentence. You need to form an appropriate word. The first one (0) is given as an example.

0. None of the obligations imposed on residents would apply to him (APPLICANT).

1. Tax Incentives for Investment in the Russian Economy. Special tax incentive instruments aimed at attracting investment in the Russian economy have been developed to help counter the current economic _________ in Russia (STABILITY).

2. They are designed to enable potential investors to save money through the use of various kinds of tax relief, and in some instances to enjoy more ________ business conditions when carrying out investment projects in certain regions of Russia (FAVOUR).

3. The principal types of tax incentives available to investors include the following: relief granted to _______ of priority social and economic development areas (“SDAs”) (RESIDENTIAL).

4. With regard to mineral extraction tax, a special coefficient is introduced which enables that tax to be reduced to zero until the first ______ begins to be earned and for two years thereafter (PROFITABILITY).

5. The concept of a regional investment project and the relief _______ for companies engaged in such projects were introduced in the Tax Code with effect from 1 January 2014 (AVAILABILITY).

6. A regional investment project is a project whose purpose is the manufacture of goods (with certain exceptions) which meets the ________ specified by tax law (REQUIRE).

7. A participant in a regional investment project is _______ to tax relief subject to certain conditions being met (ENTITLEMENT).

8. In order to obtain the relief _________ by regional legislation for such investors, a taxpayer must satisfy a number of requirements, prepare certain documents and sign an investment agreement with regional authorities (PRESCRIPTION). 

9. Dividends that Russian companies distribute abroad are _______ at source at the rate of 15% (TAX).

10. Applying the investment criterion in practice is often _________ (PROBLEM).

 

  Exercise 8.

Match the words (1-4) with their definitions (A-D).

1. tax evasion           A goods to be bought and sold

2. value-added tax   B  the total value of goods and services produced

                                          within a country in a year

3. tax burden           C  reduction or minimization of tax liability by illegal

                                         methods;

4. GDP                    D a tax on the amount by which the value of an article

                                         has been increased at each stage of its production

                                         or distribution;

5. merchandise        E  the amount of tax suffered by an individual or

                                         organization;

 

UNIT EXTENSION