Living abroad Russians forced to report on foreign accounts – Finanz.ru

The Finance Ministry proposes to oblige all went abroad of Russians to report on foreign accounts. Under the bill the Department, the citizens of Russia will always be considered to be the currency by residents, however long they may have lived in other countries. Now currency by residents cease to be citizens who are a year or more living in other countries for any lawful reason, reminds RBC.

Currency-residents are obliged to submit to the Russian currency legislation. So, they must within one month notify the tax authorities about opening of accounts in foreign banks and to report annually on the movement of funds in such accounts. For them also there are restrictions on the set of operations that can be performed with the use of foreign accounts that, for example, you cannot Deposit money received from the sale of a car or real estate to a nonresident.

the Ministry of Finance proposes not to implement the same rules for citizens of Russia, who for a year or more living abroad. So, they do not need to immediately notify the tax authorities of open and closed accounts in foreign banks, to report on the movement of funds on such accounts and use of foreign Bank accounts only in the operations that are allowed in Russia. However, if these citizens decide to return to Russia, they will have to report to tax authorities about all their foreign accounts and currency transactions for the whole period of his absence in the country. Such a report will require those citizens who will stay in Russia in the aggregate for more than three months within one year, although do not plan to return permanently.

a New law is proposed to enter into force from 1 January 2018. The proposed changes potentially affect at least 2 million Russians, including the consulates in different countries. In the explanatory note to the bill States that the applicable definition of the Russian foreign residence creates difficulties for Russian banks, which are required to quickly determine whether their client is a Russian resident or non-resident when carrying out transactions on his behalf. However, the partner Paragon Advice Group Alexander Zakharov is sure that the Ministry of Finance is simply trying to shift the burden of proving the absence of obligations on the holders of Russian passports. The expert did not rule out that the innovation, in particular, limit freedom of movement in Russia for the Russians permanently living abroad.

Head of legal Department AKG “MEF-Audit” Alexander Ovesnov believes that in General, the main provisions of the bill are aimed at strengthening control over financial operations of citizens. According to him, laying on living permanently in other countries Russians resident status will be obliged to impose on them additional responsibilities and restrictions under Russian law on currency control, including the calculations with non-residents.