The Finance Ministry has proposed to weaken the rules for determining currency residents


The Finance Ministry has proposed to relax the foreign exchange control over transactions of people in their foreign accounts, the foreign exchange resident will not be considered employees who spent in Russia less than three months of the year, writes the newspaper “Vedomosti” that managed to see the Ministry-developed the concept of the bill.

Under current law, the foreign exchange resident is a Russian citizen, who is in Russia at least for a day, the newspaper writes. For violation of foreign exchange regulations, citizens face a penalty in the first 75% and then 100% of the transaction amount, for example the sale of shares. And to get rid of this status is almost impossible. “People really complained — it is impossible to get rid of currency of the residency of otherwise than to change nationality”, — the newspaper said a Federal official.

If the Finance Ministry’s proposals will be implemented, the Russians, who have been in the country less than three months, will not report to the tax service about foreign accounts and operations on them, and to confirm foreign exchange prezidentstvo will be the same as the tax.

Notice of drafting the bill published on regulation.gov.ru however, the text of the bill on it yet. In the notice the purpose of the project is the definition of “currency of residency” of individuals; elimination of certain excessive charges for authorized banks and physical persons-residents during the currency operations with the use of accounts (deposits) of physical persons-residents opened in banks outside of territory of the Russian Federation; expanding the list of cases of depositing funds on accounts (deposits) of physical persons-residents opened in banks outside of territory of the Russian Federation, passing the authorised banks”.

Source