Submitting of reports on movement of funds by foreign citizens-residents of the Russian Federation
Article prepared by Vorobyov Alexey, lawyer of Confidence Group
All residents of the Russian Federation having accounts (deposits) in banks outside the territory of the Russian Federation, including foreign citizens belonging to the category of residents of the Russian Federation, are required to submit annual reports to the tax authority on movement of funds on accounts (deposits) in banks outside the territory of the Russian Federation. We propose to consider this issue in more detail.
The concept of a tax resident is contained in Art. 207 of the Tax Code of the Russian Federation (Tax Code). This article provides that tax residents are individuals who are actually in the Russian Federation for at least 183 calendar days for the next 12 consecutive months (that is, from any current moment - 12 months ago).
It should be especially noted that the period of an individual’s stay in the Russian Federation is not interrupted for periods of his departure outside the territory of the Russian Federation for short-term (less than six months) treatment or training, as well as for the performance of labor or other duties related to the performance of work (provision of services) for offshore hydrocarbon deposits.
Speaking about foreign citizens in Russia, one should not confuse the status of a foreign citizen - a resident of the Russian Federation and the status of a foreign citizen with a temporary residence permit or residence permit, since the condition of staying in the Russian Federation for at least 183 calendar days for 12 months foreign citizens who have recently received a permanent residence permit or a temporary residence permit and who have not been in Russia for 183 calendar days in 12 months may not yet correspond. Therefore, these categories should be separated.
Foreign citizens who previously resided in other countries often have accounts and deposits with banks located outside the territory of the Russian Federation - therefore, they should remember that for the purposes of currency and financial control in part 2 of article 12 of the Federal Law of 10.12.2003 N 173-ФЗ “On currency regulation and currency control” provides that resident individuals submit to the tax authorities at the place of their registration reports on the movement of funds on accounts (deposits) with banks outside the territory of the Russian Federation in the manner established by the Government of the Russian Federation in agreement with the Central Bank of the Russian Federation.
Accordingly, in pursuance of this legislative norm, Decree of the Government of the Russian Federation as of 12.12.2015 N 1365 “On the procedure for the submitting by individuals — residents to tax authorities of reports on the movement of funds on accounts (deposits) in banks outside the territory of the Russian Federation” stipulates the obligation of residents of the Russian Federation (including and foreign citizens belonging to this category) to report on the movement of funds on accounts (deposits) with banks outside the territory of the Russian Federation.
This Decree of the Government of the Russian Federation approved the "Rules for submitting by individuals - residents to tax authorities of reports on movement of funds on accounts (deposits) with banks outside the territory of the Russian Federation" (hereinafter referred to as the Rules).
The Federal Tax Service of Russia provides for the organization of accounting and control over submitting by individuals - residents to tax authorities of reports on movement of funds on accounts (deposits) with banks outside the territory of the Russian Federation.
It is provided that a resident individual submits a report to the tax authority annually until June 1 of the year following the reporting year, with the exception of a number of cases when reports are submitted at other times in accordance with the Rules. The report is submitted for the period from January 1 to 31 December of the reporting year inclusive.
Thus, for example, for 2018, the residents of the Russian Federation had to report by June 1, 2019.
Moreover, the Rules separately provide for exceptions: if an account (deposit) at a bank outside the territory of the Russian Federation is opened after January 1 of the reporting year, the report is submitted for the period from the date of opening the account (deposit) to December 31 of the reporting year inclusively.
In case of closing an account (deposit) with a bank outside the territory of the Russian Federation in the reporting year, the report is submitted for the period from January 1 of the reporting year or from the date of opening an account (deposit) with a bank outside the territory of the Russian Federation in the reporting year to the date of closing of the account (deposit) inclusively simultaneously with the notification of closing the account (deposit) within the period established by Part 2 of Article 12 of the Federal Law “On currency regulation and currency control”, namely: no later than one month from the day, respectively, of closing the account or deposit.
Reports on movement of funds on accounts (deposits) in banks outside the territory of the Russian Federation are submitted by resident individuals to the tax authorities in accordance with the Rules approved by the said Decree of the Government of the Russian Federation, starting with reporting for 2015.
The report form is provided for by the said Decree of the Government of the Russian Federation.
There are several ways to provide such a report:
- the report is submitted in electronic form through the personal account of the taxpayer, which is posted on the official website of the Federal Tax Service of Russia on the Internet;
- submitted on paper directly by an individual resident or representative of an individual resident whose authority has been confirmed in accordance with the legislation of the Russian Federation;
- sent by registered mail with delivery confirmation.
The report submitted by the resident individual to the tax authority through the taxpayer’s personal account is signed with an enhanced unqualified electronic signature in accordance with Federal Law as of 06.04.2011 N 63-ФЗ “On Electronic Signature” and is recognized as an equivalent document on paper, signed by the handwritten signature of the individual - resident.
It is important to understand that, in accordance with the Rules of the Federal Tax Service of Russia, it has the authority to request supporting documents (copies of documents) and information related to foreign exchange transactions, opening and maintaining accounts (deposits).
For this reason, we recommend that you provide such supporting documents at the same time as the report itself (which is permitted by the Rules).
If the tax authority detects errors or inaccurate information indicated by the resident individual in the report, as well as filling out the report in full, the tax authority notifies the resident individual in writing of the need to submit a corrected (updated) report.
The corrected (specified) report must be submitted by an individual resident to the tax authority within the time period specified in the notification, which cannot be less than 7 work days from the day it is received.
For non-compliance with obligation to submit cash flow reports, administrative liability is provided for under Part 6 of Art. 15.25 of the Code of Administrative Offenses - imposition of an administrative fine:
- for citizens - from two thousand to three thousand rubles;
- for officials - from four thousand to five thousand rubles;
- for legal entities - from forty thousand to fifty thousand rubles.
