Capital Amnesty - 3

08.02.2019

Legal update 664

Bryan Cave Leighton Paisner (Russia) LLP, formerly Goltsblat BLP in Russia, advises that, on 6 February 2019, Russia’s President Vladimir Putin proposed prolonging, for at least a year, the “capital amnesty” (voluntary disclosure by individuals of foreign bank accounts and assets).

The President suggested that the terms underlying the current (second) round of disclosure (which expires on 28 February 2019) be extended to include transfer of funds into Russia and registration of business in “special legal framework areas” (meaning special administrative regions or SARs).

The President also believes it feasible to grant a one year personal income tax exemption for CFC profits to individuals who become Russian tax residents in 2019.

The previous year showed that such presidential directives could be implemented in next to no time. We expect the draft Federal Law to see the light in the coming days and will keep you posted.

Even so, there is no certainty regarding the new round’s terms and restrictions, which might limit greatly the scope of declarants. We recommend carefully balancing the decision whether to postpone filing a special declaration within the current round. Please be reminded that the effective amnesty expires on 28 February 2019.

Bryan Cave Leighton Paisner (Russia) LLP has a wealth of experience of advising private clients on voluntary disclosure of assets and overseas accounts, and “turnkey” drafting of relevant documents.

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