FTS Russia is joining agreement on exchange of information on non-resident financial accounts

May 12, 2016 2:30 pm

Russian Federal Tax Service has already prepared a project to provide for this exchange

Russian Federal Tax Service (FTS) has prepared a draft decree that provides banks, depositories, and insurance companies for obligatory reporting on their non-resident financial accounts. For noncompliance the ministry proposes to levy fines from 300 to 500 thousand rubles.

The project was developed within the framework of an international agreement on automatic exchange of  information. Today (May, 12) during the OECD Forum on Tax Administration in Beijing, Russia will sign the Multilateral Competent Authority agreement for the automatic exchange of Country-by-Country reports (CRS MCAA). Thus, in 2018, Russian financial institutions will have to prepare and provide their first reports on non-resident financial accounts as for 2017 to Russian tax authorities.

In 2013, the OECD and G20 recognized that enhancing transparency for tax administrations by providing them with adequate information to assess high-level transfer pricing and other BEPS-related risks is a curtail aspect for tackling the BEPS problem. On February 2014, the G20 financial ministers agreed on a “common reporting standard”, an agreement that endorsed the share of information. On July 2014, the OECD Council approved it. On 29 October 2014, 51 jurisdictions participated in the first ever signing ceremony for the CRS MCAA in Berlin. On 12 May 2016, in the margins of the tenth Meeting of the Forum on Tax Administration, Israel and Russia will sign the CRS MCAA, bringing the current total number of signatories to 82.

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