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Russian Federation – Prolongation of the Tax Amnesty

 

On February 19, 2019, Vladimir Putin signed Federal Laws No. 33- FZ, 34- FZ and No. 35- FZ, prolonging the tax amnesty and so called “tax free liquidations” of CFC’s (Controlled Foreign Companies and Organizations) until March 1, 2019.

 

The terms of the extended amnesty will allow Russian citizens to inform the tax authorities of their foreign assets. Russian tax authorities will inquire into the source of income with which the assets were purchased and they will not impose any tax, criminal or administrative liability on the declarant. The said assets also will not need to be repatriated in to Russian Federation.

 

There are several new conditions imposed, amongst them the Bank accounts, which were closed before declaration can now be declared, the declarants who already submitted the declaration during the first stage of the amnesty can participate again and there is clear guidance for the tax deductions from the disposal of the assets received by the declarant from the nominal holders.

 

Prolongation of the Tax Amnesty Law also extends the period during which the liquidation proceeds from the CFCs are free from taxation and will be tax deductible for the purposes of the future sale of these assets. Also, monetary funds received by the declarant are non –taxable and this particular provision covers the period from 1st January, 2016 until 28th February, 2019.

 

 

 

For further information on this topic please contact

Mrs. Liza Bokova (lbokova@pittaslegal.com) at SOTERIS PITTAS & CO LLC,

by telephone (+357 25 028460) or by fax (+357 25 028461)

 

 

The content of this article is intended to provide a general guide to the subject matter. Specialist advise should be sought about your specific circumstances.