The Russian Finance Ministry submitted the draft bill to the government along with amendments to the tax and penal codes.
If approved, the bill will enable people to legalize past hidden incomes, an explanatory note attached the draft says.
The draft and amendments were drawn up after President Vladimir Putin discussed the issue in his state of the nation address to the Federal Assembly, the Russian parliament.
Profits gained before January 1, 2005 fall under the simplified declaration procedure on a voluntary basis. The government expects to carry out the measure from January 1 to July 1, 2006.
The taxpayer is to define the amount he or she is to pay proceeding from the flat tax rate of 13% and the amount of income, specified in a special declaration. The declared funds must be transferred to a Russian bank included in the deposit insurance scheme.
Aside from the special declaration, no documents on the kinds or sources of incomes need to be submitted.
