Guidelines for Russian citizens on completing reporting documents

Today we will explain how to correctly complete reporting documents and notifications for citizens of the Russian Federation living outside the Russian Federation who hold accounts with foreign banks, have permanent residence status, or hold dual citizenship outside Russia.

Report on the movement of funds belonging to a resident individual in a bank account (deposit) outside the Russian Federation

The appendix to the ‘Rules for the submission by resident individuals to the tax authorities of reports on the movement of funds in accounts outside the Russian Federation…’ contains examples of reporting forms No. 1 and No. 2.

The first is entitled ‘Cover Sheet’ and is shown for illustrative purposes only. When completing the document correctly for submission to the tax authorities, Russian citizens should fill in the two report sheets directly.

The form is available free of charge and is provided by leading firms such as Deloitte, although various ‘entrepreneurs’ on legal websites have already started selling the report for as little as 7 euros.

We would like to remind you once again that the report form is available free of charge.

In the correct version of this report, the first page states that the document constitutes the annual accounts for a specific calendar period. This year, that period runs from 1 January 2015 to 31 December 2015, i.e. the entire calendar year 2015. This information is not included on the title page of the Appendix (for example).

Please also bear in mind that citizens of the Russian Federation must submit the report in duplicate, one copy of which must be returned to you. If you are sending the envelope by registered post via ‘Russian Post’, it is advisable to send the correspondence with proof of delivery. It costs next to nothing, but you will retain proof that the documents have been sent (the receipt for the registered post, the post office clerk’s surname and the amount paid) and delivered to the addressee.

Notification of dual citizenship or permanent residence outside the Russian Federation

As regards notification of second citizenship or a permanent residence permit outside the Russian Federation to the Federal Migration Service (or the Main Directorate for Migration Issues under the Ministry of Internal Affairs of Russia, as this service has been known since 5 April 2016, and the FMS, which is now subordinate to the Ministry of Internal Affairs of the Russian Federation), the form for such a notification must be on a single sheet of paper, printed on both sides. When printing out the form in Annex No. 1 to Order No. 450 of the FMS of Russia dated 25 July 2014, please ensure that it consists of a single sheet with text on both sides.

A form consisting of two sheets will not be accepted, and the deadline will be deemed to have been missed; furthermore, the stamp confirming receipt of such an incorrect notification will be deemed invalid.

Furthermore, if you are sending the notification via ‘Russian Post’, you must present the form, completed on both sides, and a valid identity document to the post office staff member; the staff member must verify your passport details, detach the notification stub and return it to you. Only then can you seal the envelope and post it to the address.

You must now carry this receipt with you on all trips abroad, so it is best to laminate it and present it on request.

If the notification is submitted in person, the stub will be stamped by an inspector from the Federal Migration Service (FMS) office in the Russian Federation city where you are registered, and receipt will be recorded. The stub will also be given to you.

Even if you are not registered at any address within the Russian Federation but are a Russian citizen, you must still submit the notification to the Federal Migration Service at the point where you actually crossed the border.

Fines

If you fail to notify the migration service within 30 days of your arrival in Russia that you hold dual citizenship or that there has been any other change to your permanent residence status in another country, an administrative fine will be imposed – starting at 500 roubles. The fine can only be paid via Sberbank using the details provided by the Federal Migration Service; the payment receipt must be handed over in person to the inspector who issued the decision and the report on the administrative offence, which you must sign in triplicate, providing a justification for the delay in notification.

You will retain one copy of the decision.

If the fine is not paid within 60 days of the date of issue, the administrative penalty case will be referred to court. If you fail to notify the authorities again when crossing the border, the fine will be much higher — from 1,000 roubles and upwards — and further breaches of the law or failure to pay the fine may result in criminal liability.

Please take care when completing the forms and ensure you submit your notifications and reports on time.

Information provided by an inspector from the regional office of the Federal Migration Service of the Russian Federation.