On 2 August 2019, the President of the Russian Federation has signed Federal Law no. 265-FZ “On Amendments to the Federal Law “On Currency Regulations and Currency Control” (further the “Law”), which introduces amendments for individuals and legal entities. The basic changes related to the individuals – currency residents are covered below. The Law includes a number of positive amendments, among which are the following:
There are also new reporting obligations for the currency residents. In particular, the Law expands the obligation to report on foreign accounts opened in ‘other financial market organizations’ located outside Russia. Based on the Law, this definition includes organizations of financial market, which under their personal law have the right to provide services connected with receiving monetary funds and other financial assets from currency residents for holding, management, investment and (or) making other transactions for the benefit of a currency resident or directly (indirectly) at the resident’s expense. The Central Bank of Russia will establish the cases in which monetary funds may be credited or debited from the accounts opened in such financial market organizations. The above-mentioned amendments will come into force as of January 01, 2020. Though the Law significantly expands the possibility to use foreign bank accounts, in particular, for investment activities, the currency control regulations become more complicated and still require careful planning and assessment of the proposed transactions from the perspective of their legality. The changes prescribed by the Law raise the new issues to be considered:
ALRUD law firm has extensive experience in provision of tax and currency control advice and comprehensive support to clients in tax and currency issues. ALRUD lawyers will be glad to answer any additional questions on new provisions of tax and currency control legislation.
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Practices: Tax Private clients
Note: Please be aware that all information provided in this letter was taken from open sources. Neither ALRUD Law Firm, nor the author of this letter bear any liability for consequences of any decisions made in reliance upon this information.