The draft federal law On Introducing Amendments to Parts 1 and 2 of the Russian Tax Code and Article 5 of the Federal Law On Credit Cooperatives was drawn up by the Ministry of Finance. Under the amendments, the Tax Code should spell out the specifics of estimating the revenues and expenditures of credit cooperatives and microfinance institutions, specifying the types of their revenues and expenditures that form the corporate profits tax base of these entities. The draft law also proposes authorising credit cooperatives and microfinance institutions to build provisions for doubtful debts which accumulate when clients fail to pay the interest on their loans and possible credit loss allowances.
A government-approved federal body authorised to regulate the credit cooperatives segment will be responsible for drafting the procedure for credit cooperatives to build their loan loss reserves.
Finally, the bill specifies the limitations on the participation of credit cooperatives and microfinance institutions in consolidated taxpayer groups.
The bill was considered and approved at a Government meeting on June 17, 2013.