Banks will be required to verify the tax residency of clients using applications abroad

According to the new rules of the Ministry of Finance, financial organizations will have to clarify the tax status of clients not only when concluding an agreement with the bank

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 received 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 the latter actively use 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 become the basis for the request.

The Ministry of Finance emphasizes that location data will not automatically determine the 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.

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Sources
Interfaks

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