The rules of the new Amnesty: last chance to bring your accounts in accordance with the law

In 2019 a new phase of Amnesty of capital began

In brief - the new Amnesty Law offers the following opportunities for individuals:

● Amnesty of accounts
It exempts from responsibility for violations of tax, currency and criminal legislation of the Russian Federation

● possibility to transfer property from nominal ownership to direct ownership of an individual with 0 tax

Main features of the new Amnesty of capital:

● guarantees are provided for violations committed before January 1, 2019

● in order to grant Amnesty to foreign accounts, it is necessary to transfer all funds from the accounts specified in the Amnesty declaration to banks located outside Russia to accounts in Russian banks

● if it is necessary to use Amnesty with respect to CFC - individuals should register them as Russian legal entities under the procedure of redomiciliation and grant them the status of international companies. For most individuals, this option is not appropriate based on the conditions proposed by the law

Amnesty liberates:

From criminal liability
● for evasion of taxes and (or) other government fees
● for failure to perform the duties of a tax agent
● for concealment of funds or property of the organization or the individual entrepreneur at the value of which collection of taxes and (or) fees shall be made
● for evasion of repatriation of funds
● for evasion of customs duties

From administrative liability, including breaching of currency law
● for foreign currency transactions on foreign accounts that are not explicitly permitted
● for failure to comply with the terms and procedure of submission of notifications on opening/ closing/ changing details of accounts (subject to submission of such notifications together with the Amnesty of Capital Declaration)

From tax liability
● for tax offenses related to the acquisition, using or disposal of property and / or controlled foreign companies, information about which is contained in the Declaration, and/or with the accounts (deposits), information about which is specified in the Declaration

Amnesty does not liberate from:
● payment of tax with respect to CFC profit
● other crimes that are specified in the Criminal code of the Russian Federation

Timeframe of the new Amnesty of Capital and of personal income tax payment in Russia

December 31, 2018
Determining the status of the controlling person and income in the form of CFC profit (or at the date of distribution of CFC profit)

March 20, 2019
The CFC notification for the 2017 financial period of CFC

April 30, 2019

Submission of the Personal Income Tax return

June 1, 2019

The start of Amnesty of Capital 3.0 campaign

July 15, 2019

Payment of tax for 2018

December 31, 2019

Determining the status of the controlling person and income in the form of CFC profit (or at the date of distribution of CFC profit)

February 29, 2020
The end of Amnesty of Capital 3.0 campaign

March 20, 2020
The CFC notification for the 2018 financial period of CFC

April 30, 2020
Submission of Personal Income Tax return

July 15, 2020
Payment of tax for 2019
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