littleangels        English Nanny
Page 1 of 3 123 LastLast
Results 1 to 15 of 37

Thread: New requirement for Russian residents to file yearly reports on foreign bank accounts

  1. #1
    Join Date
    Jun 2009
    Location
    SPB
    Posts
    768
    Thanked: 20

    New requirement for Russian residents to file yearly reports on foreign bank accounts

    I just got back from a trip to my local tax office, answering a summons about a violation. Turns out in 2015 a new law was passed where Russian residents (citizens too, presumably) must file a report (отчёт) by the end of every May for the previous calendar year's balance, deposits, and withdrawls on foreign bank accounts. They know about my foreign bank account because as a Russian resident, I had to file a statement declaring the account in order to do wire transfers to that account from Russian banks (which I need to do to pay my foreign taxes). The first time violation (minimum) is 2500 rubles. And I get an administrative protocol filed against me, hooray.
    "What we need, as the ancients understood, is not a politician who is a business man, but a king who is a philosopher." -- G.K. Chesterton

  2. The Following 3 Users Say Thank You to Bogatyr For This Useful Post:

    Judge (24-11-2016), rusmeister (24-11-2016), tasel (12-02-2017)

  3. #2
    Join Date
    Nov 2014
    Location
    Kyiv
    Posts
    332
    Thanked: 192
    Well yeah, this is old news for Russian citizens that you shouldn't send money to an account in the same name, didn't know this applies to foreigners as well though. The way around it usually is that you get your significant other (or parents, siblings etc.) to send the money to your foreign account. Or send money from your account to an account registered in your spouse's (or other relatives' ) name in the other country.

    But now that they caught you, this cannot be undone, and you're gonna have to keep declaring info on that foreign account every year for the rest of your life, unless you present them with proof that you closed the account.

  4. #3
    Join Date
    Jun 2009
    Location
    SPB
    Posts
    768
    Thanked: 20
    For Russian residents accounts, banks in Russia won't wire transfer any money out of a Russian account to a foreign account without the form from the local Russian tax agency showing that you've registered the account. Maybe they skip that check if the destination account is not in your own name, but I've only done transfers to/from my own named accounts so I wouldn't know.

    Yep, it is the nail that sticks up which gets pounded back down. Another fun yearly declaration to make! At least I don't have to do it at the "быстро и удобно" (hah!) central migration center.
    "What we need, as the ancients understood, is not a politician who is a business man, but a king who is a philosopher." -- G.K. Chesterton

  5. #4
    Join Date
    Sep 2015
    Location
    Novosibirsk
    Posts
    18
    Thanked: 3
    Interesting. Does anyone have a reference for the law in question? Presumably transferring money into Russia is ok, it's only transferring out that gives the game away?

  6. #5
    Join Date
    Nov 2003
    Location
    Moscow
    Posts
    228
    Thanked: 29
    If you transfer money from your own foregin bank account in your own name to your Russian bank account the tax authorities will want to know why you didn't declare the foreign bank account.

  7. #6
    Join Date
    Nov 2014
    Location
    Kyiv
    Posts
    332
    Thanked: 192
    Quote Originally Posted by kanga View Post
    If you transfer money from your own foregin bank account in your own name to your Russian bank account the tax authorities will want to know why you didn't declare the foreign bank account.
    That's why all transfers should be done to/from other people (spouse or other relatives) if one wants to avoid this. Actually I'd really like to know what criteria they use to determine that it's the same person (except the obvious situation where the name is completely identical). Let's say someone named Mikhail Ivanov gets a transfer from an American guy named Michael Ivanoff, are they gonna suspect it's the same person, and if so, what are they gonna do, freeze the transaction until the Russian Ivanov proves he isn't the same person (or admits that he's the same person and declares the foreign account)?

  8. #7
    Join Date
    Sep 2015
    Location
    Novosibirsk
    Posts
    18
    Thanked: 3
    Quote Originally Posted by LaughingMan View Post
    Does anyone have a reference for the law in question?
    Anyone know the answer to this, I'd like to look up the rules.

  9. #8
    Join Date
    Apr 2018
    Location
    USA
    Posts
    66
    Thanked: 16
    Quote Originally Posted by LaughingMan View Post
    Anyone know the answer to this, I'd like to look up the rules.
    Federal Law #173 http://www.consultant.ru/document/cons_doc_LAW_45458/

  10. The Following User Says Thank You to seaworld For This Useful Post:

    LaughingMan (30-03-2019)

  11. #9
    Join Date
    Jul 2004
    Location
    here,since many years
    Posts
    20,169
    Thanked: 4395
    now you also can understand why few landlords want to register their tenants legally. they have to pay tax on the income. and the receiver will know what they earned. can not file anymore for -subsidies-, - social benefits-, - i have such a small pension-....
    There is no greater treasure then pleasure....

  12. The Following 2 Users Say Thank You to Benedikt For This Useful Post:

    Hans.KK (23-03-2019), nicklcool (16-05-2019)

  13. #10
    Join Date
    Apr 2018
    Location
    USA
    Posts
    66
    Thanked: 16
    Benedikt,
    Only few of them pay taxes on rental income. Registering tenants does not obligate landlord to file taxes on this income.

  14. #11
    Join Date
    Apr 2018
    Location
    USA
    Posts
    66
    Thanked: 16
    Does anybody follow this rule? I have read a lot of information. It is not a joke. Everybody who has TRP, PRP or Russian citizenship and live in Russia more than 183 days a year has to report his foreign bank accounts and file the report about money coming and going through the year.

  15. #12
    Join Date
    May 2016
    Location
    Dinskaya, Krasnodarskiy Kray, Russia
    Posts
    82
    Thanked: 51
    Quote Originally Posted by seaworld View Post
    Everybody who has TRP, PRP or Russian citizenship and live in Russia more than 183 days a year has to report his foreign bank accounts and file the report about money coming and going through the year.
    I was unsure about this and asked my local tax inspector if they could confirm it for me (I "only" have TRP). Since they didn't know, I submitted an online request to the Federal Tax Service from their website, explaining that I had a TRP and some bank accounts abroad and did I have to declare them. They wrote back to me that no, I did not since I am not considered to be a permanent resident yet. I would only need to declare the accounts once I get PRP or citizenship and live more than 183 days in Russia.

    This letter dates from 25 April this year, by the way.

  16. #13
    Join Date
    Apr 2018
    Location
    USA
    Posts
    66
    Thanked: 16
    OK. If they read it that way.
    According to the Federal Law #173 (statue 1, point 6, subpoint b) you are a currency resident if you permanently live in Russia with residency permit. http://www.consultant.ru/cons/cgi/on...22287491249515
    1. Для целей настоящего Федерального закона используются следующие основные понятия:
    6) резиденты:
    б) постоянно проживающие в Российской Федерации на основании вида на жительство, предусмотренного законодательством Российской Федерации, иностранные граждане и лица без гражданства;
    I guess you can say that you temporary live in Russia if you have only TRP. But law does not say what type of residency you have to have.

  17. #14
    Join Date
    Apr 2018
    Location
    USA
    Posts
    66
    Thanked: 16
    PRP would be вид на жительство. Then yes, BigBear, you do not need to report. Very good!

  18. #15
    Join Date
    Jul 2016
    Location
    Moscow
    Posts
    238
    Thanked: 86
    What about foreign properties, do we have to report it too?

Page 1 of 3 123 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •