- January 12, 2023
If you live in Russia for most of the year (i.e., you are a resident) and you have an account (bank or brokerage) outside of Russia, you may have to send a cash flow statement to the tax authorities.
When you don’t have to do anything
You don’t have to file a CFS if two conditions are met at the same time:
- You opened an account in a country with which Russia automatically exchanges financial information. The list is long — you can download the file from the tax service site. We can also add the EAEU countries to this list: Armenia, Belarus, Kazakhstan and Kyrgyzstan.
- Total amount of funds credited/withdrawn from the account in 2022 does not exceed 600,000 rubles (or the equivalent in a foreign currency). If the account was not replenished, the balance is taken into account: at the end of 2022, it must not exceed 600,000 rubles (or the equivalent in a foreign currency).
How and by what date to report
There are several ways to file a report with the tax service:
- online through the personal account of the taxpayer,
- by registered mail,
- by personal visit to an office of the Federal Tax Service,
- via an authorized representative
You need to report by June 1, 2023.
What documents should be attached to the report?
There is no need to attach any bank or other documents to the statement of cash flows and financial assets. However, such documents may be requested by the tax inspectorate if it has any questions. Therefore, we recommend requesting them in advance from the foreign bank or broker. Please note that documents drawn up in a foreign language must be translated into Russian.
Such supporting documents include:
- information about the opening (closing) of an account (deposit),
- changing the details of a foreign account,
- bank statements on a foreign account (deposit),
- broker account reports, etc.
What penalties are provided for?
- For submitting a notification on opening / closing an account (deposit) or on changing the account details (deposit) in a foreign bank and the IOFR in violation of the deadline or not in the prescribed form, a fine is provided:
– for citizens in the amount of 1000 to 1500 rubles;
– for officials – from 5000 to 10,000 rubles:
– for companies — from 50,000 to 100,000 rubles. (Part 2 of Article 15.25 of the Administrative Code of the Russian Federation).
- For failure to submit a notification, a fine is provided:
– for citizens in the amount of 4000 to 5000 rubles;
– for officials – from 40,000 to 50,000 rubles;
– for companies — from 800,000 to 1 million rubles. (Part 2.1 of Article 15.25 of the Code of Administrative Offences of the Russian Federation).
- For non–compliance with the procedure for submitting reports on the flow of funds on accounts (deposits) in foreign banks and the IOFR, a fine is provided:
– for citizens in the amount of 2,000 to 3,000 rubles;
– for officials – from 4,000 to 5,000 rubles;
– for companies — from 40,000 to 50,000 rubles. (Part 6 of Article 15.25 of the Code of Administrative Offences of the Russian Federation).
What to do if you have trouble submitting a report
If you give us the information we need, we will prepare the report for you. We can also send the report to the tax service and talk to them about any issues that may arise. On our website zakaz.awaragroup.com you can choose and pay online for the option that suits you best: just a report, full support, or some separate individual services.