Residents of the Russian Federation were allowed some operations with foreign currency

Such permits are valid from March 10, 2022 without time limit.

On March 10, at a meeting of the subcommittee of the Government Commission for Monitoring the Implementation of Foreign Investments, decisions were made:

1. Financing of foreign branches and representative offices.

Allow residents to transfer foreign currency to their accounts in foreign banks and other financial market organizations in order to finance the current operating activities of branches and representative offices of residents.

The volume of such operations should not exceed the amount of financing of the branch (representative office) for the previous year.

2. Receiving salaries, rent payments, dividends and interest from non-residents.

Allow operations on crediting foreign currency to the accounts (deposits) of residents-individuals in foreign banks and other financial market organizations, from non-residents, if these are wages, rents, coupons and dividends on securities and other interest payments.

3. Transfers from an account to an account in foreign banks and fin.organizations.

Allow resident individuals to transfer (including conversion operations) foreign currency from accounts opened before March 1, 2022 in foreign banks and other financial market organizations to their foreign accounts. The condition for such a permit is the disclosure of information about foreign accounts to the tax authorities of the Russian Federation in accordance with the established procedure.

Let’s recall:

(a) financial market organizations are considered (according to clause 142.1 of the Tax Code of the Russian Federation)

• a credit institution (bank),
• an insurer engaged in voluntary life insurance,
• a professional participant in the securities market engaged in brokerage, securities management, depository activities,
• a manager under a trust management agreement,
• a non-state pension fund,
• a joint-stock investment fund,
• a management company of an investment fund, a mutual investment fund or a non-state pension fund,
• a central counterparty,
• a managing partner of an investment partnership,
• another organization or structure without the formation of a legal entity that, within the framework of its activities, accepts funds or other financial assets from clients for storage, management, investment and (or) execution of other transactions in the interests of the client or directly or indirectly at the expense of the client.

a financial asset means cash, securities, derivative financial instruments, shares in the authorized (pooled) capital of a legal entity or shares in a foreign structure without the formation of a legal entity, claims from an insurance contract, as well as any other financial instrument related to these types of financial assets.

(b) information about foreign accounts that is subject to disclosure to the tax authorities of the Russian Federation is information about the opening of accounts (deposits), changes in details and reports on the movement of funds on them. Such information is provided in the form of notifications and reports. We also remind that from October 1, 2021, an obligation has been introduced to provide a report on transfers using foreign electronic means of payment (wallets) if amounts over 600 thousand rubles are credited to its balance during a calendar year.

We are always happy to provide explanations and answer your questions.