Confidence Group would like to remind that on November 28, 2015 the amendments to the Federal Law №173-FZ "On Currency Regulation and Currency Control" (hereinafter - the 173-FZ) came into force. It provides the mandatory provision of reports on the flow of funds within the accounts (deposits) in banks located outside of Russia by foreign citizens who are Russian residents.
In accordance with the Federal Law № 173 residents are:
- individuals - the citizens of the RF, with the exception of Russian citizens permanently residing in a foreign country at least one year, including those issued by the authorized state body of the corresponding foreign state residence or temporarily staying in a foreign country at least one year on the basis of work visa or student visa with a validity at least one year, or on the basis of the aggregate of such visas with the general valid at least one year;
- permanently residing in the RF on the basis of a residence permit under the legislation of the RF, foreign citizens and persons without citizenship;
- legal entities established in accordance with Russian legislation;
- branches located outside of Russia, representative offices and other subdivisions of residents mentioned in previous sub-paragraph.
RF Government Resolution as of December 12, 2015 № 1365 "On the order of submission by resident individuals to the tax authorities on the movement of funds on the accounts records (deposits) in banks outside the territory of the RF" establishes the procedure for the preparation and submission of the report referred to the 173-FZ.
Thus, the report is submitted annually before 1 June of the year following the reporting one. In some cases, reports are submitted in the other periods. The report shall contain the personal data of a resident, the information of the bank, where the account (deposit) is opened, the details of the account, the balances at the beginning (the end) of the year, information on the crediting and debiting of the account during the reporting period, and others.
The report can be presented in several ways:
- in electronic form through the taxpayer's personal account on the site of Russian Federal Tax Service. In this case, the report must be signed by unskilled enhanced electronic signature;
- personally or through a representative on the paper;
- by registered mail with return receipt requested.
P. 6-6.5 of article 15.25 of the Administrative Code provides the liability for breach of these requirements.
Failure to meet the requirements on submitting of the reports on flow of funds on accounts of banks, placed outside the territory of the RF entails a fine:
- for citizens – 2000-3000 rubles;
- for officials – 4000-5000 rubles;
- for legal entities – 40000-50000 rubles.
Repeated commission of the offense entails a fine:
- for citizens – 20000 rubles;
- for officials – 30000-40000 rubles;
- for legal entities – 400000-600000 rubles.
Violation of the deadline for submission of such reports for not more than 10 days - entails a warning or a fine:
- for citizens – 300-500 rubles;
- for officials – 500-1000 rubles;
- for legal entities – 5000-15000 rubles.
Violation of the deadline for submission of such reports for more than 10 days but less than 30 days - entails a fine:
- for citizens – 2500-3000 rubles;
- for officials – 4000-5000 rubles;
- for legal entities – 40000-50000 rubles.
Violation of the deadline for submission of such reports for more than 30 days - entails a fine:
- for citizens – 1000-1500 rubles;
- for officials – 2000-3000 rubles;
- for legal entities – 20000-30000 rubles.
The text of the Federal Law "On Currency Regulation and Currency Control" is available here.
For additional information, please contact consultants of Confidence Group.
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