diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/AnnotationChecker.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/AnnotationChecker.kt
index ffc6e6b3d09..2fea37d0c3b 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/AnnotationChecker.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/AnnotationChecker.kt
@@ -1,5 +1,5 @@
 /*
- * Copyright 2010-2015 JetBrains s.r.o.
+ * Copyright 2010-2017 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -312,7 +312,7 @@ class AnnotationChecker(private val additionalCheckers: Iterable<AdditionalAnnot
             val T_OBJECT_LITERAL = targetList(OBJECT_LITERAL, CLASS, EXPRESSION)
 
             val T_TYPE_REFERENCE = targetList(TYPE) {
-                onlyWithUseSiteTarget(VALUE_PARAMETER)
+                onlyWithUseSiteTarget(RECEIVER)
             }
 
             val T_TYPE_PARAMETER = targetList(TYPE_PARAMETER)
diff --git a/compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/ReceiverAnnotations.kt b/compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/ReceiverAnnotations.kt
index eed2f114ab8..db591b9c260 100644
--- a/compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/ReceiverAnnotations.kt
+++ b/compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/ReceiverAnnotations.kt
@@ -4,14 +4,14 @@ annotation class Ann
 class SomeClass {
 
     <!INAPPLICABLE_RECEIVER_TARGET, WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@receiver:Ann<!>
-    constructor(<!INAPPLICABLE_RECEIVER_TARGET!>@receiver:Ann<!> <!UNUSED_PARAMETER!>a<!>: String)
+    constructor(<!INAPPLICABLE_RECEIVER_TARGET, WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@receiver:Ann<!> <!UNUSED_PARAMETER!>a<!>: String)
 
-    <!INAPPLICABLE_RECEIVER_TARGET!>@receiver:Ann<!>
+    <!INAPPLICABLE_RECEIVER_TARGET, WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@receiver:Ann<!>
     protected val simpleProperty: String = "text"
 
-    <!INAPPLICABLE_RECEIVER_TARGET!>@receiver:Ann<!>
+    <!INAPPLICABLE_RECEIVER_TARGET, WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@receiver:Ann<!>
     fun anotherFun() {
-        <!INAPPLICABLE_RECEIVER_TARGET!>@receiver:Ann<!>
+        <!INAPPLICABLE_RECEIVER_TARGET, WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@receiver:Ann<!>
         val <!UNUSED_VARIABLE!>localVariable<!> = 5
     }
 
diff --git a/compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/wrongParamAnnotationsOnTypes.kt b/compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/wrongParamAnnotationsOnTypes.kt
new file mode 100644
index 00000000000..c42fe12dcb6
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/wrongParamAnnotationsOnTypes.kt
@@ -0,0 +1,15 @@
+// !DIAGNOSTICS: -UNUSED_PARAMETER
+
+fun test1(i: <!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@setparam:Suppress<!> Int) {}
+fun test2(i: <!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@param:Suppress<!> Int) {}
+fun test3(i: <!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@receiver:Suppress<!> Int) {}
+fun test4(i: <!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@field:Suppress<!> Int) {}
+fun test5(i: <!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@set:Suppress<!> Int) {}
+
+fun test6(): <!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@setparam:Suppress<!> Int = TODO()
+fun test7(i: (<!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@setparam:Suppress<!> Int) -> Unit) {}
+
+fun <!INAPPLICABLE_TARGET_ON_PROPERTY, WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@setparam:Suppress<!> Int.test8() {}
+fun ((<!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@setparam:Suppress<!> Int) -> Unit).test9() {}
+
+fun test10(): ((<!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@setparam:Suppress<!> Int) -> Unit) = TODO()
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/wrongParamAnnotationsOnTypes.txt b/compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/wrongParamAnnotationsOnTypes.txt
new file mode 100644
index 00000000000..628c159de21
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/wrongParamAnnotationsOnTypes.txt
@@ -0,0 +1,12 @@
+package
+
+public fun test1(/*0*/ i: @setparam:kotlin.Suppress(names = {}) kotlin.Int): kotlin.Unit
+public fun test10(): (@setparam:kotlin.Suppress(names = {}) kotlin.Int) -> kotlin.Unit
+public fun test2(/*0*/ i: @param:kotlin.Suppress(names = {}) kotlin.Int): kotlin.Unit
+public fun test3(/*0*/ i: @receiver:kotlin.Suppress(names = {}) kotlin.Int): kotlin.Unit
+public fun test4(/*0*/ i: @field:kotlin.Suppress(names = {}) kotlin.Int): kotlin.Unit
+public fun test5(/*0*/ i: @set:kotlin.Suppress(names = {}) kotlin.Int): kotlin.Unit
+public fun test6(): @setparam:kotlin.Suppress(names = {}) kotlin.Int
+public fun test7(/*0*/ i: (@setparam:kotlin.Suppress(names = {}) kotlin.Int) -> kotlin.Unit): kotlin.Unit
+public fun @setparam:kotlin.Suppress(names = {}) kotlin.Int.test8(): kotlin.Unit
+public fun ((@setparam:kotlin.Suppress(names = {}) kotlin.Int) -> kotlin.Unit).test9(): kotlin.Unit
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
index 8937cafb7a2..61ebe5e9f50 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
@@ -1682,6 +1682,12 @@ public class DiagnosticsTestGenerated extends AbstractDiagnosticsTest {
                     String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/SparamAnnotations.kt");
                     doTest(fileName);
                 }
+
+                @TestMetadata("wrongParamAnnotationsOnTypes.kt")
+                public void testWrongParamAnnotationsOnTypes() throws Exception {
+                    String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/wrongParamAnnotationsOnTypes.kt");
+                    doTest(fileName);
+                }
             }
         }
 
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
index a683568dca4..c8002830643 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
@@ -1682,6 +1682,12 @@ public class DiagnosticsUsingJavacTestGenerated extends AbstractDiagnosticsUsing
                     String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/SparamAnnotations.kt");
                     doTest(fileName);
                 }
+
+                @TestMetadata("wrongParamAnnotationsOnTypes.kt")
+                public void testWrongParamAnnotationsOnTypes() throws Exception {
+                    String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/wrongParamAnnotationsOnTypes.kt");
+                    doTest(fileName);
+                }
             }
         }
 
diff --git a/core/descriptors/src/org/jetbrains/kotlin/descriptors/annotations/KotlinTarget.kt b/core/descriptors/src/org/jetbrains/kotlin/descriptors/annotations/KotlinTarget.kt
index c05851931ca..c8f8c5c697a 100644
--- a/core/descriptors/src/org/jetbrains/kotlin/descriptors/annotations/KotlinTarget.kt
+++ b/core/descriptors/src/org/jetbrains/kotlin/descriptors/annotations/KotlinTarget.kt
@@ -1,5 +1,5 @@
 /*
- * Copyright 2010-2015 JetBrains s.r.o.
+ * Copyright 2010-2017 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -40,6 +40,8 @@ enum class KotlinTarget(val description: String, val isDefault: Boolean = true)
     FILE("file", false),
     TYPEALIAS("typealias", false),
 
+    RECEIVER("receiver", true),
+
     TYPE_PROJECTION("type projection", false),
     STAR_PROJECTION("star projection", false),
     PROPERTY_PARAMETER("property constructor parameter", false),
@@ -124,7 +126,7 @@ enum class KotlinTarget(val description: String, val isDefault: Boolean = true)
                 AnnotationUseSiteTarget.FILE to FILE,
                 AnnotationUseSiteTarget.PROPERTY_GETTER to PROPERTY_GETTER,
                 AnnotationUseSiteTarget.PROPERTY_SETTER to PROPERTY_SETTER,
-                AnnotationUseSiteTarget.RECEIVER to VALUE_PARAMETER,
+                AnnotationUseSiteTarget.RECEIVER to RECEIVER,
                 AnnotationUseSiteTarget.SETTER_PARAMETER to VALUE_PARAMETER,
                 AnnotationUseSiteTarget.PROPERTY_DELEGATE_FIELD to FIELD)