Tax notification of a foreign account: to whom and in what time frame it needs to be done
According to the law, if you opened an account or deposit abroad, you must notify the Federal Tax Service (FTS) about this. The rules apply to all accounts, deposits outside of Russia in banks or other financial institutions, which account for cash and other financial assets. Thus, it is necessary to inform the Federal Tax Service about the opening of foreign brokerage accounts.
What else you need to notify the tax office:
This rule applies to residents of Russia, that is, citizens of the country, with the exception of:
citizens of Russia who permanently reside in another state for at least a year, including those with a residence permit;
citizens of Russia who temporarily stay in a foreign country for at least a year on a work or student visa with a validity period of at least a year.
Residents of Russia, who are also tax residents, must report this data to the tax authority at the place of registration no later than one month from the date of opening, closing an account or deposit, or changing details. Russian residents who are not tax residents must also report foreign accounts.
Tax non-residents are individuals who stay in Russia for 183 days or less per year.
However, they must do this before June 1 of the year following the reporting year. For example, before June 1, 2022, you need to report for opening an account in 2021. “The logic is that you are a resident or a non-resident is clear only after the expiration of 183 days, so the cutoff is taken,” RBC said. Investments » Oleg Bychkov, Managing Partner of Prospekt Law Office.
There are several ways to apply for a foreign account:
through inspection
by mail with acknowledgment of receipt
online with electronic signature
through the personal account of the taxpayer on the website of the Federal Tax Service
After you have informed about your foreign account, you need to report on the movement of funds on it at the end of the year every year. You must submit your first report by June 1 of the year following the one in which you opened the account. For example, if you opened an account in 2022, then by June 1, 2023 you will need to report to the tax office.
How to open a foreign bank account in 2022. Instruction Banking and finance , Russia , Europe , Sanctions
How to register in the personal account of the taxpayer
Let’s take the last way – through a personal account. If you do not have it, then before notifying the tax office about a foreign account, you need to get it.
To get access details to your personal account, you can contact any tax authority, regardless of place of residence and registration. Exceptions are specialized inspections that operate as registration centers, as well as data processing centers and inspections for working with the largest taxpayers. If you are unable to attend in person, an authorized representative can do so for you. To do this, he needs a notarized power of attorney and his passport.
You can also register in your personal account using your account on the Gosuslugi portal. To do this, it must be confirmed. The easiest way to verify your account is through the applications of the banks that Gosuslugi cooperates with. Among them are Sberbank, Tinkoff Bank, VTB and others. The full list can be viewed on the portal.
If your bank is not on this list, you can use another confirmation method:
Come to the service center in person. You need to have a passport and SNILS with you;
By registered letter or electronic signature. It will take 2 to 14 days. Instructions on how to do this can be found on the “Gosuslugi”.
Now we will analyze step by step how to notify the tax office about opening an account abroad.
How to open a card in a foreign bank in 2022 Banking and finance , Investments , Sanctions
How to notify the Federal Tax Service about opening an account abroad: we analyze the steps
Step 1
Go to the “Life situations” section and select the “Inform about a bank account located outside the Russian Federation” item.
Screenshot from the taxpayer’s personal account on the website of the Federal Tax Service
Step 2
Click on the first section “Notify about the opening of an account (deposit) in a bank …”.
Screenshot from the taxpayer’s personal account on the website of the Federal Tax Service
Step 3
You should now see a form that you need to fill out. Required fields are marked with an asterisk. There will be only one in the list of tax authorities, select it.
Screenshot from the taxpayer’s personal account on the website of the Federal Tax Service
Go to the “sign of notification” field, there are two lines here. Oleg Bychkov explained that the first line is intended for tax residents, that is, individuals who stay in Russia for more than 183 days a year. The second line is for tax non-residents, he added.
Screenshot from the taxpayer’s personal account on the website of the Federal Tax Service
Screenshot from the taxpayer’s personal account on the website of the Federal Tax Service
Step 4
On the same page, we fill in the information about the account: its number, the date it was opened, then you need to enter which account you have – personal or joint with other people, and also enter the currency in which it is opened. You do not need to search for the currency code, you can choose from the options offered.
Screenshot from the taxpayer’s personal account on the website of the Federal Tax Service
Step 5
Next, in the same form, fill in the information about the organization in which you have an account: choose where – in a bank or other financial institution, enter the name, address and country.
Screenshot from the taxpayer’s personal account on the website of the Federal Tax Service
If you have data that is not marked as required, then you can enter them too. For example, the form has fields where you need to enter information about the number and date of the contract. Therefore, do not forget to take an agreement when opening an account abroad.
In the “tax number” field, we are talking about the number that the tax office of another country assigns to you. For example, in Kazakhstan it is an individual identification number (IIN) – an analogue of the Russian TIN.
Step 6
At the next stage, you must enter the password for the electronic signature certificate (ES), so if you do not have it, you need to get it in advance.
Screenshot from the taxpayer’s personal account on the website of the Federal Tax Service
To do this, go to the “Life situations” section and select “Other situations”. Next, you need to find the section “Need an electronic signature”, select the option for storing the certificate and send a request. The processing time can be different, sometimes it happens quickly – in half an hour, and in other cases it can take up to a day.
What happens if you don’t give notice?
Russia exchanges tax data with 79 non-CIS countries and 12 territories. In addition, since 2020, the CIS countries have begun the automatic exchange of data on income and property of businesses and citizens, so that the Federal Tax Service itself can find out that you have an account abroad.
For violations of currency laws, you will pay a fine, including for filling in the data incorrectly or submitting a notification late.
If you are late in filing a notice or send it out of form, you will be charged a fine:
for citizens: from ₽300 to ₽500, if the report is overdue by no more than ten days, delay by more than ten days, but less than 30 days – ₽1 thousand to ₽1.5 thousand, more than 30 days — from ₽2.5 thousand to ₽3 thousand;
for officials: from ₽5 thousand to ₽10 thousand;
for legal entities: from ₽50 thousand to ₽100 thousand
Failure to notify may result in the following fines:
for citizens: from ₽4 thousand to ₽5 thousand;
for officials: from ₽40 thousand to ₽50 thousand;
for legal entities: from ₽800 thousand to ₽1 million
The Federal Tax Service explained that if you made an inaccuracy in the information already sent or sent a notification by mistake, then you can correct or cancel it using a corrective or canceling message. In addition, after filing the notice, the tax authority may require clarification from you.
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Source: RBC
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