By order of the Federal Tax Service dated October 30, 2024 N ED-7-17/916@ (registered with the Ministry of Justice of the Russian Federation on December 20, 2024), the list of states and territories with which automatic exchange of financial information is carried out was updated. It included 63 countries and 12 territories.
26 of the 28 states that are members of the European Union were excluded from the updated list, while such states as Armenia, Cameroon, Rwanda and Jamaica, as well as the territory of Niue, were added to it.
These changes are important for Russian tax residents, as follows.
Today, a fairly large number of Russians open foreign accounts and create foreign companies, while maintaining the status of tax residents of the Russian Federation. Russian residents have a general obligation to declare their foreign accounts, i.e. to notify about the opening of an account and report on the movement of funds in the account.
In this regard, the issue of international tax exchange is particularly relevant.
Depending on whether automatic exchange of financial information is carried out with a particular state, the question is decided whether a Russian tax resident, having an account in a foreign country, should report to the Federal Tax Service of the Russian Federation on the movement of funds and other financial activities. In addition, this may also determine what funds can be credited to such accounts so as not to violate the currency legislation of the Russian Federation.
The law firm "Nadmitov, Ivanov and Partners" provides tax support services and consults on CFC issues, foreign accounts and currency law.
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