FNS has developed the law about clients of Russian banks foreigners


The Federal tax service (FTS) has prepared a bill regarding the automatic exchange of information, which will oblige banks, managers and insurance companies, depositaries to transmit data on the accounts of their foreign clients to the Russian tax authorities, write “Vedomosti”.

FNS will pass the data to their colleagues abroad. The failure to pass information or violation of the terms of financial organizations face a fine from 300 000 to 500 000 rubles.

You need to report the investment income customers, the sale of shares, account balances, interest on deposits, bonds, contracts, insurance, payments and balances. Organizations also have to find out who is the beneficiary of the account or of the shares.

As told the publication PwC partner Maxim Kandyba, gathering information about the accounts of nonresidents, Common Reporting Standard (of CRS), is analogous to American law FATCA, which requires financial institutions to inform the tax authorities about US accounts of American residents. Russia should sign the agreement on automatic exchange of information 12 may at the OECD forum, and in 2018, financial institutions have to transmit data for 2017.

In may 2015, the savings Bank has sent its clients emails with a request to report the citizenship or residence of other countries. This was done to report to US tax authorities. And similar requests sent then the Bank “the absolute”, b & n Bank and Promsvyazbank.

Banks told then that to identify foreign taxpayers among their clients, Russian banks are forced by us law On taxation of foreign accounts” (FATCA). The purpose of the law is to fight tax evasion among American citizens. For this purpose, all financial institutions outside the United States are required to provide information about the accounts of Americans. In Russia the law to come into force on 1 July 2014.

Initially it was assumed that between Russia and the United States concluded the intergovernmental agreement and the tax authorities of the two countries will interact. But after the beginning of the Ukrainian crisis, the talks were frozen in Russian banks have to join FATCA.