How to correctly fill out a report on the movement of funds in an account in a foreign bank. Note to foreign account holders: how and when to report to the tax authorities

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From January 1, 2015, Russians are required to report annually on the accounts they have in foreign banks, as well as on the flow of funds through them. However, throughout the year, citizens did not understand how and what to report. On December 12, 2015, the Government of the Russian Federation adopted Resolution No. 1365, which clarified the situation: reports are sent once a year to the Federal Tax Service before June 1 of the following year, and the report form was also determined. The procedure seems quite simple. Let's consider whether this is as simple a responsibility as it might seem at first glance, and what else account holders need to know in the coming year.

The history of the development of modern currency legislation begins in the days of the USSR, when a currency monopoly operated. Further, currency regulation began to be carried out in accordance with the laws of 1991-1992. In the 2000s, currency legislation was liberalized. At present, our currency legislation cannot be called flexible; the law still contains a number of strict rules, in particular, this includes a closed list of permitted currency transactions. And the current economic situation has led to a legislative initiative to reduce the types of permitted foreign exchange transactions and to strengthen administrative methods of foreign exchange regulation.

Attempts by tax authorities to control accounts of Russian citizens in foreign banks began back in the 2000s. In order for an individual who has an account in a foreign bank to transfer funds from his Russian account to it, he was required to notify the tax service, otherwise the operation was considered prohibited (Part 2 of Article 12 of the Federal Law of December 10, 2003 No. 173- Federal Law ""; hereinafter referred to as Law No. 173-FZ). However, this did not entail significant costs: the tax authority was notified of the opening of one account in a foreign bank, to which money was transferred from a Russian account, which is not prohibited by currency legislation, and after funds were received into such an account, transfers were made from it to other foreign accounts, about which the tax authority did not know and did not actually control.

But since 2011, as part of an active deoffshorization policy, the situation began to change.

From January 1, 2015, individuals were required to report annually on their existing accounts in foreign banks and on the flow of funds through them (). This obligation applies to citizens who are currency residents, who must be distinguished from tax residents. Currency residents are citizens of the Russian Federation, with the exception of citizens of the Russian Federation who have been permanently residing in a foreign country for at least one year, as well as persons permanently residing in the Russian Federation on the basis of a residence permit, and stateless persons. However, a bill has now been prepared providing that from January 1, 2017, all citizens of the Russian Federation will be recognized as currency residents, regardless of where they live and for what period.

Thus, from the beginning of 2015, individuals were given an annual obligation, first of all, to notify the tax authority about the opening, closing, or changing the details of accounts in foreign banks. For violation of this norm, a fine was established in the amount of 4 thousand to 5 thousand rubles. ().

Federal Law No. 140-FZ of June 8, 2015 established the provision that filing a declaration under this law is equivalent to sending a notification to the tax authority about an existing foreign account. But during 2015, no one understood the procedure for fulfilling the obligation to submit a cash flow statement. In some cases, territorial inspectorates demanded from individuals information about the flow of funds in a foreign account, citing a statutory obligation. Due to the unknown procedure and growing dissatisfaction, the Federal Tax Service of Russia clarified that until a procedure has been established, the obligation to report does not arise.

Thus, throughout the year everyone was wondering how they would need to report. One of the proposals is by analogy with legal entities (in accordance with ), the second is a more simplified procedure compared to the procedure established for legal entities.

Finally, on December 12, 2015, the Government of the Russian Federation adopted Resolution No. 1365 "" (hereinafter referred to as Resolution No. 1365), which determined the procedure for submitting a statement of cash flows on a foreign account.

The report must reflect information about the individual account owner, as well as all transactions on all accounts opened in foreign banks for the previous calendar year. When closing an account in a foreign bank, the report is submitted simultaneously with the notification of account closure, in accordance with the period provided by Law No. 173-FZ, no later than one month from the date of its closure.

In the case of maintaining a common (joint) account in a foreign bank, a report is provided by each resident individual.

The report is as simple as possible to fill out: you must indicate the name of the bank and the country where the account is opened, its number, as well as four amounts - the amount in the account at the beginning of the year, the total amounts of credits and debits for the year and the balance at the end of the year. The report is sent to the tax authority electronically through the “Taxpayer’s Personal Account” or on paper (in person, through a representative or by registered mail with acknowledgment of delivery).

It is important to note that the Resolution does not contain an obligation to attach bank statements to the report, but the tax authority has the right to demand their provision if questions arise.

New challenges and opportunities

Regarding taxes

What happens: resident individuals are required to notify the tax authorities about foreign accounts and submit a report on the flow of funds on these accounts. However, that's not all.

If previously the tax authority could not fully control the payment of personal income tax on income in the form of interest on deposits in foreign banks, now the situation has changed.

Federal Law No. 325-FZ of November 4, 2014 allowed tax authorities to freely request information, including about the accounts of their citizens, from states parties to the convention. However, it seems unlikely to find out for each resident individual whether he has an account with a foreign bank, since the tax authority will have to send an incredible number of requests to OECD member countries, and they, in turn, will have to start asking banks for information about account of a specific individual. This circumstance provides a reprieve and time to think about whether a citizen needs an account in a foreign bank, at least until 2018 (Russia’s likely accession to the automatic exchange of information). And this delay is necessary, since the sanctions provided for violating currency control regulations are much harsher than the possible tax consequences. So there is something to think about.

KSK Group experts closely monitor innovations within the framework of the deoffshorization policy, including laws on CFC, capital amnesty, currency legislation and legislation on the legalization of assets obtained by criminal means. After all, helping to make the right decision is the main task of a professional consultant. Our experts conduct seminars on the topic: “Tax, currency and anti-money laundering legislation: the fight for the legalization of assets”, within the framework of which the most pressing issues of applying the norms of these branches of legislation, judicial practice are considered, and practical advice and business solutions are offered. We also provide legal advice, both oral and written. KSK Group experts are leading consultants and have extensive practical experience in implementing projects in a wide variety of areas of law.

Shipovskova Yulia,
Lawyer at the Department of Tax Security, International Planning and Development

Despite the fact that the report has been submitted for several years, I receive many questions about how to fill it out correctly. In this article you will find detailed instructions on how to correctly fill out a report on the movement of funds on an account (deposit) in a bank outside the Russian Federation and answers to frequently asked questions.

The report form itself can be downloaded on the “” page.

Sheet 1

On the first sheet of the report, you indicate the name of your tax office and fill in your personal information.

The exact name and address of your tax office can be found through the official service of the Federal Tax Service (FTS).

Regarding the address of residence, unfortunately, the form of the report on the movement of funds in accounts in foreign banks does not provide for the opportunity to indicate an address outside the Russian Federation. I would recommend indicating the address to which you can receive mail in Russia (for example, the address of your parents). The main idea of ​​this address is the ability to receive correspondence from the tax office in case they send you something.

This is what it will look like in the report:

At the end of the first sheet, you need to enter the details of your identity document. In most cases this will be your passport. Here are the most common document type codes:

A complete list of document type codes is available.

This is what it will look like in the report:

Now let's move on to Sheet 2.

Sheet 2

On the second sheet, information about the account in a foreign bank and the flow of funds through this account is filled out. If you have several accounts, then you fill out a separate Sheet 2 for each such account.

First, the reporting period for which the report is submitted is filled in. In 2019, we submit a report for the 2018 calendar year. Then indicate the full name of the bank (in Latin letters), the SWIFT code of the bank, the country of location of the bank and the country code.

The SWIFT code can usually be found on the bank's website, or by calling the bank's contact center. You can find the country code using the World Country Classifier. For example, the code for Australia is 036.

This is what it will look like in the report:

Then the account number itself is indicated. If you are the only account holder, you need to check the “Personal account” box. If the account is a joint account, you will need to note this and also indicate the number of account holders.

After this, the digital and alphabetic codes of the account currency are indicated. You can find currency codes. Points 2-5 are filled in only if the account is multi-currency. In this case, you will also have to indicate account balances and turnover (more on this below) in each currency separately.

Next, the most time-consuming part of the report is the account movements. Firstly, all amounts are indicated in thousands. For example, if the account balance at the beginning of the year was $500, you need to enter 0.5. Secondly, you need to indicate how much money was credited to the account during the year and how much was written off from it, that is, what is called account turnover in accounting.

Information about credits and debits can be found in your bank statement. Please note that in bank statements, all transactions are traditionally considered from the bank’s perspective. That is, all credits (receipts of money) to the account are indicated as Credit, and all write-offs (expenses or money transfers) are indicated as Debit.

Thus, you need to enter the credit turnover (Total credits) from the bank statement in the “Funds credited for the reporting period” column, and the debit turnover (Total debits) in the “Funds written off for the reporting period” column.

Typically, the bank sends several statements throughout the year, which means that you will need to add up all the credit turnover and all the debit turnover from these statements in order to enter them into the report. You can test yourself as follows. If you calculated everything correctly, then you should have the following equation:

(Account balance at the beginning of the period) + (Funds credited) - (Funds written off) = (Account balance at the end of the year (Closing balance)) according to the bank statement.

In my example it looks like this:

Let me remind you once again that all amounts are indicated in thousands.

In the 90s, an account could be opened abroad only after receiving permission from the Bank of Russia. And although the permitting procedure for opening accounts was replaced by a notification procedure in 2001, this rudiment remained in the cash flow report. Therefore, if your account was opened before September 2001, the report must indicate the date of issue and the number of the Bank of Russia permit on the basis of which you opened the account. Otherwise, leave this field blank.

All that remains is to indicate the date of completion, print the report and sign.

How to submit a report

There are 3 ways to submit a report on the movement of funds of a resident individual in an account (deposit) with a foreign bank:

1. Electronically through the taxpayer’s personal account on the Federal Tax Service website
   This is perhaps the easiest and fastest way. There is only one “but”: you must have access to your personal account. If you do not have such access, then you will not be able to register remotely; to obtain a password, you must appear in person at the tax office.
2. By mail
   If you do not have access to your electronic account, then a printed and signed report can be sent to the inspection address. We already found the inspection address when filling out Sheet 1.
   Attention: the report must be sent by registered mail with acknowledgment of delivery (clause 5 of the Rules for the submission of reports on the flow of funds on accounts from the Decree of the Government of the Russian Federation of December 12, 2015 N 1365). In this case, the date of submission of the report is the date of sending it to the tax office according to the stamp on the envelope.
3. Through your representative (if he has a notarized power of attorney)
   If you have an authorized person in Russia with the right to represent your interests before the tax authorities, he can file a report on your behalf. In this case, the report is printed in 2 copies and the report is signed not by you, but by your representative.
   I would recommend that you ask your representative when visiting the tax office to also arrange for you access to the taxpayer’s personal account.

Of course, you can submit the report by bringing it to the tax office in person.

In conclusion, let me remind you once again that the deadline for submitting a report on the movement of funds on accounts (deposits) in banks outside the territory of the Russian Federation for 2018 is until June 1, 2019.

FAQ

Question: Do I need to submit a report if I spent less than 183 days a year in Russia?

Question: I have a joint account with my husband (wife) and I do not receive any income. Do I need to submit a report?

Answer: The Foreign Bank Flow Report is tied to whether you have foreign accounts, not whether you receive any income. Even if you simply have an account with a foreign bank, and there have been no transactions on this account during the year, you still need to include this account in the report. If the account is joint, then do not forget to note this in the report (see above in the article). If your husband (wife) is not a currency resident of Russia, then they do not need to submit a report on the joint account.

Question: I have several accounts in different foreign banks. Which ones do I need to report on?

Answer: A cash flow statement must be submitted for all your accounts (deposits) in all foreign banks. Please note that if you have, for example, 10 accounts, you do not need to submit 10 reports. You fill out one general Sheet 1, and a separate Sheet 2 for each account (see above in the article).

Question: I already pay taxes in Australia ( note: substitute any other country), why should I still pay taxes in Russia?

Answer: Submitting a report on the movement of funds in accounts in foreign banks is a requirement of currency legislation, not tax legislation. The rules for paying taxes in Russia are determined by whether you are a tax resident of the Russian Federation. If you are not a tax resident (spent less than 183 days in the Russian Federation within 12 months), then your foreign income is not taxed in Russia.

However, you may not be taxable, but remain a currency resident of the Russian Federation. In this case, you are subject to all the requirements of currency legislation, including you need to notify the Federal Tax Service about the opening/closing of accounts in foreign banks and submit a report on the flow of funds on these accounts.

Question: What will happen to me if I simply don’t submit the report?

Question: What if I don’t pay the fine? And anyway, I live abroad, how will they find me?

Question: How do they even know that I have accounts abroad?

Question: Do I need to attach copies of bank statements or other supporting documents to the report?

Answer: This is a very good question. There is no need to attach copies of supporting documents to the report on the movement of funds through accounts in foreign banks. But don't rush to throw away your bank statements. If the tax inspectorate has any questions about your report, they have the right to request additional information, including supporting documents (copies of documents).

All supporting bank documents must be translated into Russian, and the translation itself must be notarized. In this case, the period for submitting supporting documents cannot be less than 7 working days (clause 3, clause 1, article 23 of the Federal Law “On Currency Regulation and Currency Control”).

From January 1, 2015, Federal Law dated December 10, 2003 N 173-FZ “On Currency Regulation and Currency Control” established the obligation of resident individuals to submit to the tax authorities a “Report on the movement of funds on an account (deposit) in a bank outside the territory of the Russian Federation” .

Experienced specialists at Capital Service will help you draw up such a report.

Service cost - 2,000 rubles

Who is required to submit a Report on the movement of funds in foreign accounts?

All individuals who are residents of Russia are required to submit a report in accordance with currency legislation. If an account is opened for several persons, each person is required to report.

Who is a resident of Russia according to currency legislation?

According to Article 1 of the Law "On Currency Regulation and Currency Control"

6) residents:

a) individuals who are citizens of the Russian Federation, with the exception of citizens of the Russian Federation, permanently residing in a foreign state for at least one year, including those who have a residence permit issued by the authorized state body of the relevant foreign state, or temporarily staying in a foreign state for at least one year years on the basis of a work visa or study visa with a validity period of at least one year or on the basis of a combination of such visas with a total validity period of at least one year;

b) foreign citizens and stateless persons permanently residing in the Russian Federation on the basis of a residence permit provided for by the “legislation” of the Russian Federation

Resident status for the purposes of currency regulation differs from tax resident status. A taxpayer ceases to be a tax resident of the Russian Federation if he is outside Russia for more than 183 days within 12 consecutive months. For a currency resident to change status, you must live abroad for more than 1 year. In this case, you must have a residence permit in a foreign country or a work (student) visa.

Documents and information required to prepare a cash flow report

• Passport;
• Details of the foreign bank in which the account (deposit) is opened;
• Account (deposit) number;
• Account balance at the beginning of the reporting period;
• Account balance at the end of the reporting period;
• How much funds were credited during the reporting period;
• How much funds were written off during the reporting period.

Deadline for submitting a cash flow report

The report must be submitted no later than June 1 of the year following the reporting year. In 2016, the Report was submitted for the first time. The report is provided on the movement of funds in a foreign account for 2015.

Where should the Report be submitted?

The report is submitted to the tax office at the place of registration.

Methods for submitting a report

The following methods are provided for submitting the Report to the tax authorities:

• The report is submitted on paper in 2 copies directly by an individual;
  
• The report is submitted on paper in 2 copies by a representative of an individual under a notarized power of attorney;
  
• The report is sent by a resident individual to the tax authority by registered mail with notification of handing;
  
• The report is submitted by a resident individual to the tax authority through the taxpayer’s personal account, signed by a strengthened unqualifiedelectronic signature.

Responsibility for failure to provide the Funds Flow Report

On January 1, 2016, administrative liability of citizens was established in the form of a fine for failure to comply with the procedure and deadlines for submitting accounting and reporting forms for currency transactions, reports on the movement of funds in bank accounts outside of Russia (Federal Law of November 28, 2015 N 350-FZ "On the introduction of amendments to Articles 3.5 and 15.25 of the Code of the Russian Federation on Administrative Offenses and Articles 12 and 23 of the Federal Law “On Currency Regulation and Currency Control” in the following amounts:

• for failure to comply with the procedure for submitting reports on the movement of funds on foreign accounts (deposits) with supporting bank documents, a citizen is subject to administrative liability in the form of a fine, the amount of which ranges from 2,000 to 3,000 rubles;
• Delay in reporting up to 10 days will result in a warning or a fine in the amount of 300 to 500 rubles;
• Delay in reporting by more than 10 days, but not more than 30 days, entails a fine of 1,000 to 1,500 rubles;
• Delay in submitting reports for more than 30 days entails a fine in the amount of 2,500 to 3,000 rubles;
• for repeated violation of reporting deadlines, a fine of 10,000 rubles is provided;
• For repeated violation of the reporting procedure, a fine of 20,000 rubles is provided.

GOVERNMENT OF THE RUSSIAN FEDERATION

ABOUT ORDER
REPRESENTATIONS BY INDIVIDUALS - TAX RESIDENTS
TO THE REPORTING BODIES ON THE MOVEMENT OF FUNDS ON ACCOUNTS (DEPOSITS)

In accordance with “Part 7 of Article 12” of the Federal Law “On Currency Regulation and Currency Control”, the Government of the Russian Federation decides:

1. Approve the attached “Rules” for the submission by resident individuals to tax authorities of reports on the movement of funds on accounts (deposits) in banks outside the territory of the Russian Federation.

2. The Federal Tax Service shall ensure the organization of accounting and control over the submission by resident individuals to tax authorities of reports on the movement of funds on accounts (deposits) in banks outside the territory of the Russian Federation.

3. Reports on the 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 this resolution, starting with reporting for 2015.

4. In the event that resident individuals close accounts (deposits) in banks outside the territory of the Russian Federation in 2015, the provisions of “paragraph three of paragraph 9” of the Rules approved by this resolution do not apply to these resident individuals. Reports on the movement of funds on accounts (deposits) in banks outside the territory of the Russian Federation are submitted by the indicated resident individuals to the tax authorities before June 1, 2016.

Chairman of the Government
Russian Federation
D.MEDVEDEV

Approved
Government resolution
Russian Federation
dated December 12, 2015 N 1365

RULES
REPRESENTATIONS BY INDIVIDUALS - TAX RESIDENTS
TO THE REPORTING BODIES ON THE MOVEMENT OF FUNDS ON ACCOUNTS (DEPOSITS)
IN BANKS OUTSIDE THE RUSSIAN FEDERATION

1. These Rules establish the procedure for the submission by resident individuals to the tax authorities at the place of their registration (hereinafter referred to as the tax authority) of reports on the movement of funds on accounts (deposits) in banks outside the territory of the Russian Federation (hereinafter referred to as the reports).

2. A resident individual submits a report to the tax authority annually, before June 1 of the year following the reporting year, with the exception of cases of submission of reports on other dates in accordance with “clause 9” of these Rules.

3. The report in the form according to the “Appendix” is submitted in one copy, except for the case provided for in “Clause 6” of these Rules.
The number of “sheets No. 2” presented as part of the report must correspond to the number of accounts (deposits) opened by a resident individual in banks outside the territory of the Russian Federation.

4. If several resident individuals open a common (joint) account (deposit) in a bank outside the territory of the Russian Federation, a report is submitted by each such resident individual.
If a common (joint) account (deposit) in a bank outside the territory of the Russian Federation is opened by a resident individual and a non-resident individual, the report is submitted only by the resident individual.

5. The report is submitted in electronic form through the taxpayer’s personal account, which is posted on the official website of the federal executive body authorized for control and supervision in the field of taxes and fees, on the Internet information and telecommunications network (hereinafter referred to as the taxpayer’s personal account), or submitted on paper directly by a resident individual or a representative of a resident individual whose powers are confirmed in accordance with the legislation of the Russian Federation (hereinafter referred to as the representative), or sent by registered mail with return receipt requested.
Technical requirements for submitting a report through a taxpayer’s personal account are established by the federal executive body authorized to control and supervise in the field of taxes and fees.
A report submitted by a resident individual to the tax authority through the taxpayer’s personal account is signed with an enhanced non-qualified electronic signature in accordance with the Federal “Law” “On Electronic Signatures” and is recognized as equivalent to a paper document signed with the handwritten signature of a resident individual.

6. In order to receive a mark from the tax authority on the acceptance of the report, the report is submitted on paper in 2 copies directly by the resident individual or his representative or sent by the resident individual to the tax authority by registered mail with acknowledgment of receipt. One copy of the report with a mark from the tax authority on acceptance of the report is returned to the resident individual or his representative on the day the report is submitted or sent by registered mail with acknowledgment of delivery within 5 business days from the date the tax authority received the report. The second copy of the report remains with the tax authority.

7. The day of submission of the report to the tax authority is considered:
a) for a report submitted through the taxpayer’s personal account - the date that is recorded by the relevant information system at the time the report is sent by a resident individual;
b) for a report submitted on paper directly by an individual resident or his representative - the date indicated in the tax authority’s note on acceptance of the report;
c) for a report sent by registered mail with acknowledgment of receipt - the date of sending by an individual resident of the registered mail with acknowledgment of delivery.

8. In order to implement currency control, the tax authority, within its competence, has the right to request and receive from a resident individual confirming documents (copies of documents) and information that are related to conducting currency transactions, opening and maintaining accounts (deposits) (hereinafter - confirming documents and information).
Supporting documents and information are submitted to the tax authority in accordance with “Article 23” of the Federal Law “On Currency Regulation and Currency Control” in the manner established by the “Resolution” of the Government of the Russian Federation dated February 17, 2007 N 98 “On approval of the Rules for the submission by residents and non-residents of supporting documents and information when carrying out currency transactions to currency control agents, with the exception of authorized banks."
A resident individual has the right to submit supporting documents and information to the tax authority simultaneously with the report.

9. The report is presented for the period from January 1 to December 31 of the reporting year inclusive.
If an account (deposit) in a bank outside the territory of the Russian Federation is opened after January 1 of the reporting year, the report is presented for the period from the date of opening the account (deposit) to December 31 of the reporting year inclusive.

10. The obligation of a resident individual to submit a report to the tax authority is considered fulfilled if the resident individual submits the report in full and on time.

11. If the tax authority identifies incorrect information (errors, inaccurate information) indicated by a resident individual in the report, as well as the report is not completed in full, the tax authority notifies the resident individual in writing of the need to submit a corrected (clarified) report (hereinafter - notification).
The notification is sent by the tax authority through the taxpayer’s personal account, or issued directly to a resident individual or his representative against signature, or sent by registered mail with return receipt requested.
The corrected (updated) report must be submitted by a resident individual to the tax authority within the period established in the notification, which cannot be less than 7 working days from the date of its receipt, in the manner prescribed by paragraphs 3 - 6 of these Rules.

12. The day of receipt by a resident individual of a notification is considered to be:
a) for a notification sent through the taxpayer’s personal account - the date that is recorded by the relevant information system at the time the tax authority sends the notification;
b) for a notification issued by the tax authority directly to a resident individual or his representative - the date indicated in the mark of the resident individual or his representative on acceptance of the notification;
c) for a notification sent by registered mail with return receipt requested - the date of receipt by the resident individual of the notification specified in the delivery receipt.

In Russia, a campaign to provide information about accounts in foreign banks has ended. As part of the campaign, Russian citizens with bank accounts outside Russia were required to provide the Federal Tax Service with information on all transactions made with foreign accounts in 2015. The head of the department of standards and international cooperation of the Federal Tax Service of Russia told BUKH.1S about what to do for those who did not have time to report for the first time on the movement of funds in their foreign accounts. Dmitry Volvach and tax expert Igor Karmazin.

Let’s make a reservation right away: the initiative to disclose information about foreign accounts is not the invention of Russian legislators. Such rules have been in effect in many countries for a long time. This is due to the fight against tax evasion and capital laundering.

Cheat sheet on the article from the editors of BUKH.1S for those who do not have time:

1. A currency resident must notify the tax authority about the opening (closing) of accounts (deposits) and about changes in the details of accounts in banks located outside the territory of the Russian Federation.

3. Notification of opening (closing) an account is submitted no later than one month from the date of opening (closing) the account or changing details, respectively.

4. Residents are also required to disclose all information about the receipt and expenditure of funds in their accounts.

6. Fines for concealing information about accounts are established by the Code of Administrative Offenses of the Russian Federation (from 4,000 rubles for citizens to 1 million rubles for organizations).

7. If citizens do not independently report their accounts, this information will be leaked to the tax authorities by third parties (controlling authorities of foreign states, credit organizations, etc.).

8. Consequences of concealing information about accounts and the movement of funds in these accounts:

Penalty for concealing an account;

Tax audit on all completed transactions (additional tax on personal income tax may be assessed);

Interest on deposits will be taxed at a rate of 13 percent;

- “deviators” will also receive a fine of 20% of the unpaid tax amounts;

Late submission of a tax return also entails a penalty (5 percent of the unpaid amount of tax payable on the basis of this declaration, for each full or partial month from the date established for its submission);

Fines are possible for carrying out illegal currency transactions (from ¾ to one size of the amount of the illegal currency transaction).

Opened a deposit (account) - report

The obligation to inform about the opening and closing of foreign accounts and deposits was introduced by Law of December 10, 2003 N 173-FZ “On Currency Regulation and Currency Control”. According to the law, a resident notifies the tax authority about the opening (closing) of accounts (deposits) and about changing the details of accounts in banks located outside the territory of the Russian Federation (clause 2 of Article 12 of Law No. 173-FZ).

The notification is submitted no later than one month from the date of opening (closing) the account or changing the details, respectively. The notification form was approved by Order of the Federal Tax Service of Russia dated September 21, 2010 No. ММВ-7-6/457@.

Later, changes were made to the law to expand the list of responsibilities of individuals. Now they are also required to disclose all information about the receipt and expenditure of funds in their accounts. Previously, only organizations and entrepreneurs were required to report on the movement of money through their accounts.

Let us note that this obligation for ordinary citizens was introduced on January 1, 2015. However, the procedure for providing information was approved (came into force) only on December 30 last year. This procedure is regulated by Decree of the Government of the Russian Federation dated December 12, 2015 N 1365 “On the procedure for the submission by resident individuals to tax authorities of reports on the movement of funds on accounts (deposits) in banks outside the territory of the Russian Federation.”

How to report

According to the new rules, the cash flow report must be submitted annually, no later than June 1. The report is presented for the period from January 1 to December 31 of the reporting year. If the account was opened after January 1 of the reporting year, the report is presented for the period from the opening date to December 31 inclusive. If an account is closed, reporting must be done for the period from January 1 to the closing date. At the same time, you will need to submit a notice of account closure.

The report indicates the depositor's data (last name, first name, patronymic, date of birth, address, telephone number, TIN), bank name, account number. It is also necessary to indicate information about the expenditure and receipt of funds. No bank statements are required. Extracts are provided only upon request if the tax authority has additional questions regarding the expenditure and receipt of funds.

In this case, supporting bank documents are presented in the form of a notarized copy. Documents drawn up in a foreign language are accompanied by a translation into Russian, also notarized. All documents must be valid on the day of submission.

The report itself can be submitted either on paper directly to the tax office or through the taxpayer’s personal account. In the second case, the report is signed with an enhanced non-qualified electronic signature.

If several residents opened a joint bank account, a report is submitted by each resident. To receive a mark on acceptance of the report, it is submitted on paper in 2 copies. One copy of the report with a mark from the tax authority indicating acceptance of the report is then returned to the resident within 5 working days. The second copy of the report remains with the tax authority.

Tax authorities will not accept a report if it contains errors or inaccurate information. Also, the report will be returned if it is not completed in full. A corrected report will then need to be submitted. It must be submitted by a resident individual within the period specified in the tax notice. This period cannot be less than 7 working days.

Who is required to report?

The obligation to submit a report to the tax office applies exclusively to currency residents who have deposits and accounts in foreign banks. Non-resident citizens do not have to report to the tax authorities. Typically, many people often confuse the status of a tax resident and a currency resident. The difference between them is colossal.

In order to avoid adverse consequences in the form of fines, it is important to understand this difference. Tax residents are individuals who stay in Russia for at least 183 calendar days during the year. This time is not interrupted even for periods of short-term travel outside the territory (Article 207 of the Tax Code of the Russian Federation).

In turn, currency residents, in accordance with Law No. 173-FZ, are citizens of the Russian Federation who do not permanently reside in the territory of a foreign state throughout the year. Residents also include foreigners living in Russia on the basis of a residence permit.

Fines for “silent people”

Fines for concealing information about accounts are established by the Code of Administrative Offenses of the Russian Federation. The law provides for fines both for failure to notify about the opening of accounts and for failure to submit cash flow statements.

Article 15.25 of the Code of Administrative Offenses of the Russian Federation (violation of currency legislation) states that failure to provide notice of opening, closing an account or changing account details entails the imposition of an administrative fine on citizens in the amount of 4,000 to 5,000 rubles. Officials will have to pay a fine of 40,000 to 50,000 rubles. For legal entities, this violation will cost from 800,000 to one million rubles.

Responsibility is also established for submitting a notification in violation of the established deadline and not in the prescribed form. This violation will entail a fine on citizens in the amount of 1,000 to 1,500 rubles, and on officials - from 5,000 to 10,000 rubles.

Failure to comply with the procedure for submitting reports (failure to submit a report) on the movement of funds in accounts and deposits will entail the imposition of a fine on citizens in the amount of 2,000 to 3,000 rubles. Officials will have to pay from 4,000 to 5,000 rubles. Repeated commission of this violation threatens citizens with a fine of 20,000 rubles, and officials - in the amount of 30,000 to 40,000 rubles.

Will it be possible to hide information about deposits (accounts)?

As part of the reporting process, it may turn out that a citizen has had foreign bank accounts and deposits for a long time. Thus, providing a report under the new rules will be fraught with dire consequences for many investors. Tax authorities will find out about the accounts and fine you for failure to notify them of their opening. However, this does not mean that it makes sense for citizens to continue to hide this information from the state. The longer information about the opening of accounts remains undisclosed, the more severe the penalties imposed on depositors.

Moreover, tax authorities can find out about the accounts on their own. For example, in the course of cooperation with regulatory authorities of foreign countries. Let us recall that at the beginning of 2016 Russia already acceded to the international agreement on the automatic exchange of financial information. The agreement, signed in Beijing on May 12, 2016, was joined by 80 states, including Luxembourg, Seychelles and Switzerland. The signing of the agreement will allow Russia to receive financial information from all these 80 jurisdictions from 2018.

The tax authorities of all these states are required to collect and transmit information about the accounts and deposits of any foreign investors on their territory. Regardless of banking and commercial secrets. All collected information will be sent to the Federal Tax Service of Russia within 9 months of the year in which the audit was carried out. For the first time, tax authorities will receive such information by September 2018.

Thus, if depositors do not independently report their accounts, this information will be leaked to the tax authorities by third parties (controlling authorities of foreign states, credit organizations, etc.).

Earlier, an order was also adopted by the Federal Tax Service of Russia, which approved the basis for interaction in this area between Russian tax authorities and foreign banks. According to the Order of the Federal Tax Service No. ММВ-7-14/501@ dated November 9, 2015, the tax service will receive information from any credit organizations operating abroad. Moreover, information about accounts will be provided not only for currency residents, but also for all Russians without exception. Therefore, non-resident status will not help in this case if the fact of non-payment of taxes is revealed.

Additional taxes

The consequences of concealing information about accounts and the movement of funds on these accounts are easy to predict. First of all, investors will be fined for concealing accounts. As we said earlier, the fine here can reach 5,000 rubles. Secondly, a tax audit will be carried out on all completed transactions. The price of the issue is personal income tax. The inspection will find out where the money came from in the accounts of Russians and, based on this, will assess additional taxes.

In addition, the accounts themselves will be subject to taxation. As you know, deposits involve the accrual of interest in monetary terms. Accordingly, interest on deposits will be taxed at a rate of 13 percent. Also, evading depositors will be charged additional penalties and fines for evading mandatory payments.

Sanctions for non-payment of taxes are regulated by Article 122 of the Tax Code of the Russian Federation. In accordance with it, non-payment or incomplete payment of tax amounts entails a fine in the amount of 20% of the unpaid tax amounts. This is for cases where non-payment was unintentional. For example, in cases of ignorance of the law, or misconception. In case of intentional tax evasion, the penalty is doubled - up to 40% of the unpaid amount.

This will result in fines and late filing of tax returns. Fines for this act are established by Article 119 of the Tax Code of the Russian Federation. The amount of penalties will be 5 percent of the unpaid amount of tax payable on the basis of this declaration for each full or partial month from the date established for its submission.

At the same time, we should not forget about fines for carrying out illegal currency transactions. By law, any amount of money transferred to a foreign account must be transferred through transit through a Russian bank. Otherwise, all income received may simply be withdrawn in favor of the treasury of the Russian Federation.

Article 15.25 of the Code of Administrative Offenses of the Russian Federation regulates fines for transferring money without going through accounts in Russian banks. This violation will entail the imposition of an administrative fine on citizens, officials and legal entities in the amount of three-quarters to one of the amount of the illegal currency transaction. In other words, the income from the sale of the same property may be entirely used to pay the fine. Plus, on top of everything else, a whole series of fines will be imposed on the account owner.

What to do and who is to blame: answers to questions from BUKH.1S readers

Residents with foreign accounts must provide information. What should those who have already closed these accounts do? Are they required to report?

Closing accounts does not relieve you of this obligation. And if the account (deposit) was closed in the reporting year, then the report must be submitted for the period from January 1 of the reporting year to the closing date.

You are talking about closing accounts in the reporting year. What if the account (deposit) was closed, say, at the beginning of 2015, or earlier? It is known that for resident individuals, the Form for reporting the movement of funds on accounts in foreign banks was approved only at the end of 2015.

This fact also does not affect the obligation to provide a report. Decree of the Government of the Russian Federation dated December 12, 2015 N 1365 directly states that if an account (deposit) was closed in 2015, then the report should have been submitted before June 1, 2016.

Let’s say a person permanently resides in France, but is at the same time a citizen of Russia. Should he report his French accounts?

Here, the time a citizen spends on the territory of a foreign state will play a decisive role. If a citizen lives abroad for 365 days a year, he is not required to provide a Russian tax report on his accounts (deposits). However, if this time is interrupted for at least a short-term business trip to Russia (even for a one-day trip), the report must be provided in accordance with the general procedure.

It is no secret that many citizens did not have time to provide information on the movement of funds before June 1. What should they do?

Submit the report after this deadline, but as soon as possible. Delaying deadlines increases the size of fines. Thus, delay in submitting a report by no more than 10 days risks a fine of 300 to 500 rubles. For more than 10 days – from 1 to 1.5 thousand rubles. More than a month – 3 thousand rubles.

Is it possible to avoid a fine for failure to submit a report, or reduce its size?

It is impossible to avoid a fine for failure to provide a report in any case. But, as we have already said, it is possible to reduce the fine if the reports are submitted later. In this case, there will be no penalty for failure to submit a report. There will only be a fine for violating the deadlines - from 300 to 3000 rubles.

Will the information I disclose in the report be classified or may it be available to third parties? What guarantees are there for data safety?

Information about foreign accounts of taxpayers is stored in the information resources of the Federal Tax Service of Russia and is protected by the tax secrecy regime (Article 102 of the Tax Code of the Russian Federation) and is not subject to disclosure (except for cases and in the manner expressly provided for by law). The Federal Tax Service of Russia applies the highest standards of information security, which virtually eliminates the risks of unauthorized access or disclosure of protected information.

If I do not disclose information about my accounts, will the tax authorities be able to independently obtain this data and hold me accountable?

Information about foreign accounts of Russian taxpayers can be obtained by the Federal Tax Service of Russia during the international exchange of tax information with foreign tax authorities on the basis of Double Taxation Agreements and the multilateral Convention on Mutual Administrative Assistance in Tax Matters. The information may be received in response to a request from the Federal Tax Service of Russia or submitted on its own initiative by a foreign tax authority. From 2018, this information will be supplied to the Federal Tax Service of Russia on a scheduled basis (annually) automatically.

I am an individual entrepreneur. What are the consequences for me, other than fines, for failure to submit a report on foreign accounts?

The legislation provides for fines for failure to provide information about opening a foreign account and, separately, for failure to provide a report on the flow of funds on such an account (for individuals and individual entrepreneurs since 2016). In addition, liability is provided for carrying out illegal currency transactions on a foreign account.

A simple formality

The reporting is quite simple, says Zakharov: a form of two sheets, on the first - the applicant’s data, on the second - information on accounts in a foreign bank. If there is more than one account, then the first sheet and several copies of the second sheet, equal to the number of accounts, must be submitted to the Federal Tax Service, he says.

Once the IRS receives your report, they may have additional questions. The press service of the Federal Tax Service confirms this: for “the purposes of currency control” it has the right to request additional documents.

In this case, the taxpayer has a week to provide the necessary papers - for example, a statement of the movement of money in a bank account, says Yulia Mikhalchuk, lawyer at the legal service CorpLaw.Pro. “It’s better to get these documents in advance from the bank,” advises Zakharov. According to him, most likely, statements of cash flows and letters about the opening and availability of accounts in such banks may be needed.

Mikhalchuk from CorpLaw.Pro also notes that it is not necessary to travel to the country where the bank is located - you can receive statements by email. The lawyer, however, fears that the Federal Tax Service will be able to demand documents with seals. “So far no one knows how to circumvent this rule, and perhaps clarifications from the Ministry of Finance or amendments to laws will be necessary,” she says.

Immediately after submitting the report, you may encounter several problems.

Tax problems

First of all, you will have to pay taxes. Personal income tax at a rate of 13% is levied on any income from bank accounts abroad: this includes coupon income, and rent from leasing foreign real estate, and the sale of securities through a management company. Also, since the beginning of 2016, income tax has been imposed on interest on deposits in a foreign bank, recalls Zakharov from Paragon Advice Group.

The 2015 declaration campaign ended on April 30. Mikhalchuk says that it was necessary to report on income received, including to foreign accounts, using Form 3-NDFL. Non-payment or incomplete payment of taxes under Article 122 of the Tax Code means a fine of 20 to 40% of their amount.

If the tax on income, for example, received from renting out real estate, is paid in the same country where the foreign account is opened and exceeds 13%, then nothing needs to be paid in Russia, notes Klenov from UFG Wealth Management.

But so that the Federal Tax Service does not have questions, it is better to provide it with a tax return from another country and payment documents if you manage your real estate yourself. If a trustee is doing this, then you need to get a certificate from him: he is the tax agent in this case, says Klenov.

According to Zakharov, you can avoid claims for taxes for previous years using a capital amnesty - submit a special declaration before July 1, 2016. “It must indicate the balance of the account abroad and attach a notice of opening the account. This removes the possibility of suing you for tax evasion,” he says.

Problems with currency legislation

Most Russian citizens are not only tax residents, but also currency residents. This concept appeared in 2012. According to the law on currency regulation, this is all citizens who have a Russian passport, except for those who have been living abroad “for at least a year” on a residence permit, work and study visas.

PwC partner Maxim Kandyba says that the phrase “at least a year” means: just show up in Russia for a day, and you are a currency resident. Zakharov, however, believes that the fact of registration at the place of residence or stay is important here. If we are talking about emigration, then the citizen is eventually discharged from his home in Russia, and it is difficult to track his short-term visits to his homeland for tax purposes, he says. According to the Russian law on the right to freedom of movement, a citizen is required to register at his place of stay within 90 days.

Foreign currency residents have greater restrictions on the use of foreign accounts. They are allowed to transfer funds from other banks (including Russian ones), credit interest on deposits, deposit cash and make a profit from converting funds.

All these norms are listed in Article 12 of the Law on Currency Regulation. In addition, salaries, travel allowances, social payments - pensions, scholarships, benefits - can be credited to these accounts. But you cannot receive grants for them, the Ministry of Finance clarified at the end of 2015. This is a violation of currency laws.

In countries that are members of the OECD and FATF, you can additionally credit foreign accounts with loans and credits in foreign currency, income from rental housing, coupon income on securities, as well as income from the trust management of your funds (if they are managed by a non-resident of Russia) . For example, Bulgaria, Montenegro and Cyprus, which are popular among Russians, are not included in either the FATF or the OECD.

All operations not included in this list are prohibited, otherwise you will face a fine, says UFG Wealth Management partner Dmitry Klenov. Paragon Advice Group partner Alexander Zakharov clarifies that the fine can range from 75 to 100% of the amount of the prohibited transaction. The same is said in Article 12.25 of the Code of Administrative Offenses.

In reality, it looks like this: if your foreign account received a profit of $100 from the sale of securities (this operation is not allowed by currency legislation), the fine could be from $75 to $100. It can be avoided by taking advantage of the capital amnesty, Klenov admits. It applies to all illegal transactions on foreign accounts on the date of filing the special declaration, says Zakharov. You can submit your declaration until July 1, 2016.

Hiding accounts

Reporting to the Federal Tax Service on foreign accounts means a huge number of problems - from obtaining statements from foreign banks to the possibility of tax and currency claims. “Everything is done so that a person will no longer have the desire to use foreign accounts. I believe that most citizens will not report,” says one of the consultants on condition of anonymity.

What awaits them in this case? According to currency legislation, if you did not report the account at all and the Federal Tax Service eventually becomes aware of it, you will have to pay a fine of 4 thousand to 5 thousand rubles. The fine for late notification is from 1 thousand to 1.5 thousand rubles. The penalty for not having time to provide documents on the movement of funds in the account is approximately the same: 10 days or less - from 300 to 500 rubles, more than a month - from 2.5 to 3 thousand rubles. Repeated violation will cost 20 thousand rubles.

Violating tax laws is more expensive. If you did not report your account abroad to the tax service at all and at the same time received income on it for many years, this is already tax evasion, Klenov argues. In this case, the Federal Tax Service may require you to pay additional taxes and issue a fine: from 100 thousand to 300 thousand rubles. depending on the underpaid amount.

International financial consultant FCP (Financial Management) Ltd. Isaac Becker is confident that the accounts will eventually become known. “Even if you remain silent today, the information will sooner or later appear in the tax service, and subsequently they will knock on your door not only for a fine,” he says.

On May 12, Russia signed an international agreement on the automatic exchange of financial information, which includes more than 80 countries. “It will begin in 2018, and the first reports will most likely be based on the results of this year,” says Zakharov. However, according to him, for this Russia will still have to conclude an agreement with each of the countries separately - only then the mechanism will begin to work.

Klenov says that for now Russia can request information about the foreign currency accounts of specific citizens for earlier years - up to 2002. Therefore, Becker advises those who have accounts abroad not to delay and to report them to the tax office in a timely manner, taking advantage of the amnesty.

What awaits rentiers, students, emigrants and traders when using foreign accounts

Rent from renting foreign housing

It all depends on where the foreign account is opened, into which income from rental housing is received. If in OECD and FATF countries, then you act within the law, says Maxim Kandyba. If in other countries, the forecast is disappointing: you are violating currency laws. In this case, income from the rental of property is in any case subject to personal income tax at a rate of 13%.

Account report

Tax law:
— 13% tax if the account is opened in “permitted” OECD and FATF countries
from 20 to 40% from the sum

Currency legislation:
- fine from 75 to 100%
from 300 rub. up to 3 thousand rubles.; for repeated violation - 20 thousand rubles.

Hiding an account

Tax law:
- requirement to pay additional taxes at the rate 13%
- fine from 100 thousand to 300 thousand rubles. for tax evasion

Currency legislation:
- fine 4-5 thousand rubles.
- fine from 75 to 100% credited funds (if the account is not in “permitted” countries)

Withdrawing money abroad before emigration

This is the simplest case: you yourself transfer money from a Russian account to a foreign one. You simply cannot fail to report the opening of an account abroad: a Russian bank will immediately require a notification with a mark from the tax service about the opening of an account in a foreign bank. Otherwise, the translation simply will not be released from Russia, says Alexander Zakharov.

Account report

Tax law:
- tax 13% from interest on account balance
- possible fine for non-payment of tax from 20 to 40% from its amount

Currency legislation:
— possible fine for being late with the report on the movement of funds in the account from 300 to 3 thousand rubles.; for repeated violation - 20 thousand rubles.

Hiding an account
- Impossible

Foreign University Scholarship

If a person studies abroad, he is not a tax resident of Russia at all, Zakharov believes. However, if training, as is usually the case, began in September, and the student spent more than half of the year in Russia, then he remains a tax resident. At the same time, a student may become a currency resident if his studies last less than a year or he comes to Russia from time to time. The very fact of receiving a scholarship does not violate currency laws in any way: it is a completely permitted operation. The only exception is grants: they cannot be credited to foreign accounts. In addition, the scholarship is not taxed at all in Russia (this is stated in Article 217 of the Tax Code).

Account report

Currency legislation:
— Possible fine for being late with the report on the movement of funds in the account from 300 to 3 thousand rubles.; for repeated violation - 20 thousand rubles.

Hiding an account

Currency legislation:
- fine 4-5 thousand rubles. for lack of account report

Emigration, salary in a foreign company

You do not violate Russian currency legislation, even if you remain a citizen of Russia. You can receive your salary into an account abroad. Most likely, you are not a tax resident of Russia: you become one only by being in the country for more than 183 days a year. This case assumes that you have deregistered in Russia and no longer live here, so there is no need to talk about currency residency. Short-term visits to Russia do not oblige you to anything: the requirement to register at the place of stay occurs only for trips lasting more than 90 days. In this case, there is no need to report on foreign accounts. However, if you decide to return to Russia for permanent residence, you will have to report, but from scratch.

Account report
- Not needed

Hiding an account
- Has no consequences

Securities trading

This is the most difficult case: the number of permitted transactions with securities in the currency legislation is limited. In fact, only coupon and interest income on securities, as well as payments on bonds, can be received into a foreign account. But only in OECD and FATF countries. Since the beginning of 2016, income from trust management has also been allowed to be credited to accounts abroad (if the manager is not a resident of Russia), explains Maxim Kandyba.

All this income is subject to personal income tax at a rate of 13%. At the same time, tax is also levied on exchange rate differences: if you bought a bond for $100 and sold it for $100, then it is likely that you still made a profit in rubles due to the rise in the dollar exchange rate and will pay tax, recalls Filinov from PwC. According to Zakharov Advice Group, from January 1, 2018, permission to credit income from the sale of securities themselves to foreign accounts will come into force. But for now this is a serious violation: the fine for it is 75-100% of the amount of income. At the same time, the redemption of bonds is not a transaction for the sale of securities, and therefore is permitted by currency legislation, Zakharov asserts.

Account report

Tax law:
- tax 13% from income (if the account is opened in “permitted” countries)
- possible fine for non-payment of tax from 20 to 40% from the sum

Currency legislation:
— possible fine for being late with the report on the movement of funds in the account from 300 rub. up to 3 thousand rubles.; for repeated violation - 20 thousand rubles.
- fine from 75 to 100%

Hiding an account

Tax law:

- requirement to pay additional taxes at the rate 13%
- fine from 100 to 300 thousand rubles. for tax evasion

Currency legislation:
- fine 4-5 thousand rubles. for lack of report
- fine from 75 to 100% funds credited (if the account was credited with “unauthorized assets” in “unauthorized” countries)