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Obligation to submit reports under currency legislation for foreigners

Obligation to submit reports under currency legislation for foreigners On 12.12.2015 the Decree of the Government of the Russian Federation No. 1365 “On the procedure of submission of reports to tax authorities by individuals - residents on flow of funds in bank accounts outside the Russian Federation” was adopted. It establishes the procedure of submitting reports by individuals who are currency residents on flow of funds in foreign bank accounts. Previously this procedure for individuals was not set out, despite the fact that the obligation of submission was provided by pert 7, article 12, of the Federal Law of 10.12.2003 No.173-ФЗ “On currency regulation and currency control”

Among the persons with the obligation to file reports are also foreign citizens who are currency residents. It is necessary to consider that currency residency in case of a foreign national depends on the availability of a residence permit, and not on the duration of their actual stay in Russia, as established by the Tax Code. Therefore, foreign persons, including highly qualified specialists, without a residence permit, do not have the obligation to submit reports.

Reports are submitted by residents no later than May 31st of the year following the accounting year (calendar year). They must contain information on the remaining balance in the accounts as of the start and end of the period, as well as the amount of credited and debited funds. As part of currency control, the tax authority to which the reports are submitted is entitled to request confirmation documents, such as bank statements.

In case the account is in a branch of a Russian bank abroad reports on such account shall not be submitted.

Violation of the procedure of report submission is punishable by different fined from 300 to 20 000 rubles according the the Administrative Offences Code. Liability may cause practical difficulties connected with extension of the residence permit.



Patrick Pohlit,

YUST Law Firm partner

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