Prospects, comments, solutions
ProsperoScope is a newsletter of Deloitte’s Private Client Service team. This newsletter presents recent and upcoming changes in Russian and international tax legislation, and information about trends and interesting developments in the private client world.
It is not intended to be a comprehensive statement of the law. We accept no liability for the completeness and accuracy of information contained in the newsletter or for any decisions made by you after reading the newsletter without additional professional consultation.
30 December 2015
Following up on the information we shared with you in our ProsperoScope of 4 December 2015, we would like to inform you that on 29 December 2015, the Russian president signed Federal law No. 401-FZ, “On introducing amendments to Article 5 of the Federal Law ‘On voluntary disclosure of property and bank accounts (deposits) by individuals.’” The law extends the deadline for submitting voluntary disclosure forms to 30 June 2016.
30 December 2015
In continuation of our previous issue dated 16 September 2015, we would like to inform you that on 22 December 2015, Governmental Order № 1365 of 12 December 2015 “On the procedure of submission by individuals – currency control residents of notifications on the movement of funds on accounts (deposits) opened in banks located outside of Russia” was published (hereafter – the Order). The Order specifies the procedure for reporting the movement of funds on individuals’ bank accounts (deposits) opened with banks outside of Russia (hereinafter – foreign bank accounts). The accepted amendments significantly simplify the reporting requirements and clarify several issues with regards to joint foreign bank accounts, and foreign accounts that were closed in 2015.
4 December 2015
In his annual message to the Russian Federal Assembly on 3 December, President Vladimir Putin stressed the significance of the voluntary disclosure campaign for individuals to declare their assets and accounts, and suggested extending the deadline submission for another 6 months.
The current law on voluntary disclosure set 31 December 2015 as the deadline for submitting declarations.
The president suggested that the Russian government conduct additional consultations on the issue and promptly introduce amendments to the law on voluntary disclosure.
4 December 2015
On 28 November 2015 the draft law "On amending articles 3.5 and 15.25 of the Russian Code of Administrative Offenses and articles 12 and 23 of the Federal Law "On currency regulation and currency control” (hereinafter - the law) came into force. The law introduces long-awaited changes to the existing list of permitted transactions for transferring funds into foreign bank accounts of Russian currency control residents.
18 November 2015
The Federal Portal of Draft Regulatory Acts has published a Draft Federal Law that includes a number of long-awaited amendments to the taxation rules on controlled foreign companies (CFCs). Among these are changes in rules for taxation of CFC’s profits and tax-free CFC liquidation benefit.
In this edition of ProsperoScope, we’ll highlight the most relevant aspects of these amendments for private clients.
A complete analysis of the Draft Law will be issued after its review by the Russian State Duma.
9 November 2015
The Federal Portal of Draft Regulatory Acts has published the Draft Order of the Federal Tax Authorities No ММВ-7-17/ "On Approving the List of States and Territories Not Exchanging Tax Information with Russia".
16 September 2015
We would like to bring your attention to the following amendments proposed to the draft regulation of the Russian Government stipulating the procedure of reporting the movement of funds on individuals’ bank accounts (deposits) opened with banks outside of Russia.
16 July 2015
The voluntary declaration campaign began on 1 July 2015 and will continue until 31 December 2015. In this period, individuals can submit a special declaration containing information about assets and foreign accounts to the Russian tax authorities.
21 May 2015
The Federal Tax Service of Russia has published the form of notification on participation in foreign organisations (on the establishment of foreign entities without legal personality). The Russian Ministry of Justice registered the corresponding Order on 13 May. We enclose our newsletter – Legislative Tracking in Focus for your information.
8 May 2015
In continuation of our previous issue of ProsperoScope dated 15 October 2014 we bring your attention to the clarification issued by the Federal Tax Service of Russia (FNS RF) on 30 April 2015 with regards to the obligation for individuals to provide the tax authorities with reports on the movement of funds on their bank accounts opened with banks located outside of Russia.
9 April 2015
We bring to your attention that on 6 April 2015 the President of the RF signed the Federal Law introducing amendments to Russian “deoffshorisation” legislation. Thus, the date for the submission of notifications on participation in foreign organisations and in foreign structures without the formation of a legal entity has been moved from 1 April 2015 to 15 June 2015.
25 March 2015
Ministry of Finance of the Russian Federation has prepared amendments to the Federal law on taxation of the profits of controlled foreign companies and of the income of foreign organizations. We enclose our newsletter – Legislative Tracking in Focus describing the proposed amendments.
16 March 2015
Disclosure of information by foreign financial organisations
A noteworthy Draft order was published on the United portal recently. The order sets out the procedure for disclosure of information by foreign financial organisations, located outside Russia, to the Russian tax authorities about accounts opened by Russian citizens and legal entities, which are directly or indirectly controlled by Russian citizens. Drafts of corresponding notifications have also been published on the portal.
2 March 2015
On 18 February 2015 Draft Law No. 607024-6 On amending Article 12 of the Federal Law On currency regulation and currency control, which extends the list of permitted foreign currency transactions for individuals who are considered as Russian ‘currency residents’, passed its first reading in the State Duma.
Appendix: Draft Law No. 607024-6