littleangels        English Nanny
Page 2 of 3 FirstFirst 123 LastLast
Results 16 to 30 of 37

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

  1. #16
    Join Date
    Jul 2011
    Location
    Kashin, Tverskaya obl.
    Posts
    1,819
    Thanked: 568
    Does anybody know if a brokerage account is considered a bank account, or something different?
    If you're going to be dumb, you better be tough...

  2. #17
    Join Date
    Apr 2018
    Location
    USA
    Posts
    61
    Thanked: 15
    DiscoverLearn,
    No. But if you rent it and receive an income you have to pay taxes to Russia since you are tax resident (live more than 183 days in a year in Russia).

  3. #18
    Join Date
    Jul 2016
    Location
    Moscow
    Posts
    210
    Thanked: 74
    Quote Originally Posted by seaworld View Post
    DiscoverLearn,
    No. But if you rent it and receive an income you have to pay taxes to Russia since you are tax resident (live more than 183 days in a year in Russia).
    Any idea, what percentage of tax is due on rent money? As I see a lot of Russians donít legally rent their homes.

  4. #19
    Join Date
    May 2016
    Location
    Dinskaya, Krasnodarskiy Kray, Russia
    Posts
    46
    Thanked: 29
    Quote Originally Posted by bydand View Post
    Does anybody know if a brokerage account is considered a bank account, or something different?
    I think so -- take a look here: https://www.nalog.ru/eng/exchinf/rfart/

    REPORT ON FINANCIAL ACCOUNTS OF RUSSIAN TAXPAYERS
    On June 28, 2014 the State Duma adopted Federal Law N 173-FZ which in Article 6 introduced reporting obligations for foreign financial institutions.
    Since 2015 all foreign financial institutions must report to the Federal Tax Service of Russia details of opened and/or maintained during the reporting period financial account of Russian taxpayers – legal entities (directly or indirectly controlled by Russian citizens) and physical persons.

    WHO MUST FILE REPORTS
    Reporting requirements apply to financial institutions situated outside the territory of the Russian Federation. The law specifies the term “financial institution” to include:
    - banking institutions,
    - insurance companies engaged in voluntary life insurance,
    - professional participants of the securities market engaged in broker activity and (or) asset management and (or) custodian activity, trustees under the property trust agreement,
    - private pension funds,
    - joint stock investment funds,
    - management companies of investment funds, mutual investment funds and private pension funds,
    - clearing organizations.

    WHEN THE REPORT MUST BE FILED
    Information must be reported until September 30 of the year following the reporting year. This means that, for example, information relating to 2015 must be reported until September 30, 2016.

    HOW TO SUBMIT THE REPORT
    The report should be submitted to the FTS Head office (Moscow, Neglinnaya strt. 23, 127381) in hard copy.


    The link also has an example (in English) of the declaration form. I see that it is necessary to specify what type of account is being reported; the choices are:
    Type of account (deposit): 01 - operating; 02 - credit; 03 - current; 04 - deposit; 05 - individual; 06 - card; 07 - special; 08 - correspondent; 09 - custodial; 77 - other account

  5. The Following User Says Thank You to BigBear For This Useful Post:

    bydand (14-05-2019)

  6. #20
    Join Date
    Apr 2018
    Location
    USA
    Posts
    61
    Thanked: 15
    BigBear, it is unclear about brokerage accounts. Nobody seems to know exactly. But Russian Tax Office wants you to report everything. Also date was changed in 2016. Now due date is June 1.
    DiscoverLearn, usually 13%. You can lower your tax if you open an entity with special tax rate for this particular income. But yes, almost nobody pays tax for an income from rental property in Russia. On the other hand if Tax office catches you it will be painful.

  7. The Following 2 Users Say Thank You to seaworld For This Useful Post:

    BigBear (16-05-2019), bydand (15-05-2019)

  8. #21
    Join Date
    Jul 2011
    Location
    Kashin, Tverskaya obl.
    Posts
    1,819
    Thanked: 568
    Quote Originally Posted by seaworld View Post
    DiscoverLearn, usually 13%. You can lower your tax if you open an entity with special tax rate for this particular income. But yes, almost nobody pays tax for an income from rental property in Russia. On the other hand if Tax office catches you it will be painful.
    If you open an entity for tax purposes, be forewarned, it will be harder to close than it was to open.
    If you're going to be dumb, you better be tough...

  9. The Following User Says Thank You to bydand For This Useful Post:

    nicklcool (16-05-2019)

  10. #22
    Join Date
    Apr 2018
    Location
    USA
    Posts
    61
    Thanked: 15
    bydand, it used to be pretty simple. They will audit you and close it. But I am not sure about today's procedure.

  11. The Following 2 Users Say Thank You to seaworld For This Useful Post:

    bydand (16-05-2019), nicklcool (16-05-2019)

  12. #23
    Join Date
    Jul 2011
    Location
    Kashin, Tverskaya obl.
    Posts
    1,819
    Thanked: 568
    Quote Originally Posted by seaworld View Post
    bydand, it used to be pretty simple. They will audit you and close it. But I am not sure about today's procedure.
    I'm sure it depends on whom you have to deal with, and my "evidence" is anecdotal. They can be so obstinate as to try and make you "prove" you are not doing taxable business anymore, which is of course impossible. They don't like to lose a source of revenue.
    If you're going to be dumb, you better be tough...

  13. The Following User Says Thank You to bydand For This Useful Post:

    nicklcool (16-05-2019)

  14. #24
    Join Date
    May 2016
    Location
    Dinskaya, Krasnodarskiy Kray, Russia
    Posts
    46
    Thanked: 29
    I'm assuming (or rather, hoping) that some of you have actually filled in one of these declarations, since the amount of information that they ask for is very long.
    For example, I know the name and the address and SWIFT BIC of my bank(s), but they also ask for the Bank Identification Code, Taxpayer Identification Number and date of registration with the foreign tax authority, the foreign tax authority id number, the registration number in the foreign country as well as the date of registration. It seems that the form also has to be signed ba a representative of the foreign bank.
    Have you given them all that information and got the form signed by your bank?

  15. The Following User Says Thank You to BigBear For This Useful Post:

    bydand (16-05-2019)

  16. #25
    Join Date
    Aug 2007
    Location
    Moscow Orange Line, oh Yeah, I'm movin' on up!
    Posts
    1,299
    Thanked: 850
    Quote Originally Posted by seaworld View Post
    BigBear, it is unclear about brokerage accounts. Nobody seems to know exactly. But Russian Tax Office wants you to report everything. Also date was changed in 2016. Now due date is June 1.
    DiscoverLearn, usually 13%. You can lower your tax if you open an entity with special tax rate for this particular income. But yes, almost nobody pays tax for an income from rental property in Russia. On the other hand if Tax office catches you it will be painful.
    It can't be that painful or the tax office would do at least a little legwork to easily catch the *thousands* of landlords throughout Moscow who rent out their properties under the table, right?
    I am fascinated by Russia, this country with frigid weather, hard souls, and hot girls!

  17. #26
    Join Date
    Apr 2018
    Location
    USA
    Posts
    61
    Thanked: 15
    BigBear,
    I am not sure what report you are referring to but reports that I am talking about are very simple. First one is about opening the account. It has your info (name, your number with tax office, etc.), bank name, SWIT code, bank's full address, account number and date when you opened account. Second report is about transactions on the account. It has your name, your number with tax office, bank name, SWIT code, country, account number, currency code, balance for the beginning of the year, credits, debits and balance for the end of the year. Not a rocket science.
    I am trying to attach these reports (2nd pages).Opening closing.pngreport.png

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

    BigBear (18-05-2019)

  19. #27
    Join Date
    Apr 2018
    Location
    USA
    Posts
    61
    Thanked: 15
    nicklcool,
    you try and let us know. I tell you my story. It happened long-long time ago (I am not sure exactly but at least 23-24 years ago). Ugly 90th... I was looking for a job. No luck. Meanwhile I decided to post an add in the newspaper that I could do an accounting work at home for small businesses. Just in several days I got a knock to the door(!). I did not give my address BTW, only tel. number was posted. It was an tax officer (he showed me his ID). He wanted to make sure I am reporting my business to them. Ha-ha. It was pretty quick.

  20. #28
    Join Date
    May 2016
    Location
    Dinskaya, Krasnodarskiy Kray, Russia
    Posts
    46
    Thanked: 29
    Strangely different to the form on their english section of the Nalog web site. Oh well.

  21. #29
    Join Date
    Apr 2018
    Location
    USA
    Posts
    61
    Thanked: 15
    Quote Originally Posted by BigBear View Post
    Strangely different to the form on their english section of the Nalog web site. Oh well.
    What is the form you are talking about? This topic is about the forms I posted. I am confused. There are only two reports you have to submit (one for opening/closing account(s) and another one for the transactions). Nothing else.
    I sent you a pm. Any time you need any help and if I can do it I will help you. I was an accountant in Russia for 14 years.

  22. #30
    Join Date
    May 2016
    Location
    Dinskaya, Krasnodarskiy Kray, Russia
    Posts
    46
    Thanked: 29
    Quote Originally Posted by seaworld View Post
    What is the form you are talking about? This topic is about the forms I posted. I am confused. There are only two reports you have to submit (one for opening/closing account(s) and another one for the transactions). Nothing else.
    I sent you a pm. Any time you need any help and if I can do it I will help you. I was an accountant in Russia for 14 years.
    Hi Seaworld, message received.

    I found an english language version of the Federal Tax Service (https://www.nalog.ru/eng/exchinf/rfart/) where they provide an example of the form: https://www.nalog.ru/html/sites/www..../FTS-Ann.1.pdf

    My comments and questions were based on that example and I’m certainly not questioning your experience, far from it. Given a choice, I would take the forms that you showed, they seem much simpler and, in any case, I imagine that the russian language forms would be required by the authorities anyway.

Page 2 of 3 FirstFirst 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
  •