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Tax Status Unclear For Foreign NGOs.

Europe Intelligence Wire

| July 04, 2008 | COPYRIGHT 2008 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From The Moscow Times)

The government will clarify later this year the tax status of grants from dozens of international organizations excluded from tax exemptions in a recent decree signed by Prime Minister Vladimir Putin, a government spokesman said Thursday.

The decree, signed Saturday by Putin, reduced the number of international organizations allowed to issue tax-free grants from 101 to just 12, a move that could raise new fears about a crackdown on foreign nongovernmental organizations.

Government spokesman Alexander Smirnov said Thursday, however, that the tax status of grants from international NGOs left off the list would be established in a decree by the end of the year. He did not give a precise date.

Until that decree is issued, grants from foreign NGOs excluded in the Saturday decree will maintain their current tax status, Smirnov said.

"This is a completely democratic and transparent measure," he said.

Saturday's decree, published on the government's web site, allows for taxfree grants from 12 intergovernmental organizations, including the Council of the Baltic Sea States, the Nordic Council of Ministers, the International Atomic Energy Agency, and the Black Sea Economic Cooperation.

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