The Staff Accounting update for Russia is available for handling the yearly tax statement's form (Form 2-NDFL) in digital XML format and the tax register form (Form 1-NDFL) in printable format in Microsoft Dynamics AX 2009 SP1 with the EE GLS layer

This article describes the Staff Accounting update to support new 2011 year legislative requirements for Russia in correct handling the tax register form (Form 1-NDFL) and the yearly tax statement's form (Form 2-NDFL) in digital XML format for employees' income tax. This update is available in Microsoft Dynamics AX 2009 Service Pack 1 (SP1) with the Eastern Europe GLS layer installed.

The Federal law No 229 from July 27, 2010 introduced and the RF Federal Tax Service order No ММВ-7-3/611@ from November 17, 2010 clarified new personal income tax related legislative requirements that are effective from January 1, 2011. The Federal law No 229-ФЗ from August 27, 2010 also updated the article 230 of Tax Code. The Federal law No 229-ФЗ announced that the income tax register in free form should be used to do tax accounting for every employee that contains the personified information about NDFL employees withholdings and respective payments to tax authorities. Such register should be used to clarify any issues about employees NDFL that can be raised by tax authorities.

Note The RF Federal Tax Service order No ММВ-7-3/611@ is published on December 30, 2010.

According to these requirements, the new functionality is created to handle results of employees' personal income tax computation representation in the yearly tax statement's form (Form 2-NDFL) in digital XML format. The functionality has the following features:

• Recognize a new "High-paid non-resident" tax payer's status.
• Display excessively deducted and not fully deducted income tax values.
• Generate a single tax statement for each tax rate that is applied for an employee during the whole fiscal year.
• Create a final XML document for official submission, based on the preliminary created tax register.