Media: the Finance Ministry has softened the law on currency control

MOSCOW, November 23 RIA Novosti. The Finance Ministry has softened the draft law on currency control, allowing the resident Russians and those who are abroad for six months or more, not to report their foreign accounts and assets, wrote in a Wednesday newspaper “Izvestia” with reference to the Department.

In September it was reported about a similar easing by the Ministry of Finance. It was then discussed that the rules of exchange controls will not apply to those who have spent in Russia less than three months of the year. Then it was proposed to expand the range of allowed operations on foreign accounts and, in particular, to allow to enroll in their money from the sales of transport and real estate, if it is registered in a member country of the OECD or FATF, the account must also be opened in the Bank in a country.

According to the newspaper, the new relief is contained in amendments to the bill “On currency regulation and currency control”, which was prepared by the Ministry of Finance. It is noted that the document, which was published by the Ministry of Finance for discussion at the end of September, has undergone a sea change.

“It is generally true that for citizens of the Russian Federation the monetary status of a resident is assigned on a regular basis, however, the citizen is exempt from reports to the tax authorities in case of objective and proven reasons, live outside of Russia, with return periods in the aggregate less than 183 days in last calendar year”, told “Izvestia” official representative of the Ministry of Finance.

The Ministry recalled that in the previous version of the bill it was about three months. Thus, it was decided to increase the length of stay of Russian citizens on the territory of the country in which they do not need to report to the tax authorities. Besides, now to be considered a resident of the Russian Federation from the point of view of the currency legislation, you need to spend over one years in the country at least one day, said the Ministry of Finance.

“We offer such a mode to switch to when the can often happen in Russia during the year and at the same time, staying its currency by a resident, not be obliged to notify Russian tax authorities and report to them via overseas accounts, and to freely operate with the funds in overseas accounts without regard to limitations imposed by Russian currency legislation,” said the representative office.

As the newspaper writes, this innovation connected with protection of balance of payments, preventing unwarranted withdrawal of capital. Also, the Finance Ministry announced a change associated with the transition period. “If, in the course of 2017, the Russian citizen, permanently residing abroad, did not enter the territory of the country, it is exempt from having to report their accounts and assets to March 1, 2018. And only if in 2018 he will spend in Russia 183 days, then the 184th he will be forced to do it,” follows from the material of the newspaper.