Financial organizations in Russia will be required to request information on tax residency from clients who have predominantly used their applications abroad for six months. This decision is aimed at improving the control over the tax obligations of citizens, according to the press service of the Ministry of Finance.
The revised draft government decree clarifies the procedure for updating data on tax residency previously obtained from clients. Geolocation data will not be used for automatically determining tax status.
Financial organizations must request information from clients if it is established that they are actively using remote services while outside of Russia. If geolocation confirms the use of services abroad in more than 50% of cases within six months, this will be grounds for a request.
The Ministry of Finance emphasizes that location data will not automatically determine a client's tax status, but will only serve as a basis for updating information. These changes will help the OFR to provide more complete and reliable data to the Federal Tax Service of Russia in a timely manner.
Read more on the topic:
Banks Conducted Tests of the Digital Ruble in the Budgetary Sphere
Central Bank May Limit the Number of Bank Cards per Person
Banks of Which Countries May Open in Russia: Incomplete List