Changes to the Russian Tax Legislation

Dear client,

We would like to inform you on the changes to the Russian Tax Legislation

What is changing?

Federal Law of the Russian Federation as of 28.06.2014 №173-FZ and the Decree of the Federal Tax Service of Russia № MMV-7-14 / 501 @ as of 9 November 2015 set out the obligation to the KIT Finance Europe to disclose the information to the Federal Tax Authorities of Russian Federation (FTS of RF) on the accounts owned by citizens of the Russian Federation or the accounts owned by legal entities directly or indirectly controlled by citizens of the Russian Federation.

When KIT Finance Europe is obligated to disclose the information to the FTS of RF?

The information should be disclosed yearly, by the 30th of September of the year, followed by the year when the account (deposit) was opened.

Therefore, KIT Finance Europe will disclose the information to the FTS of RF on all clients, who have entered into agreement on opening the account in 2015.

Who will be affected?

• Citizens of the Russian Federation;
• Entities directly or indirectly controlled by the Russian citizens (stake holding over 25%).

What information will be disclosed by KIT Finance Europe?

For individuals:

• FULL NAME
• INN
• Date and place of birth
• Residential Address in the Russian Federation and abroad (if any)
• Series and number of identity document
• Date of issue of this document
• The number of accounts, opening and closing dates, the type of account

For legal entities – registered in the Russian Federation:

• Legal name
• TIN and BIN
• GIIN (if any)
• Registered address in the Russian Federation
• The number of accounts, opening and closing dates, the type of account
• Information on the beneficiaries is not specified

For legal entities – not registered in the Russian Federation:

• Name
• TIN
• GIIN
• The registration number in the country of registration and date of registration
• Registered address in the country of registration
• The number of accounts, opening and closing dates, the type of account

+ Information on direct or indirect beneficiaries-Russian citizens-all the same as for individuals except the information on accounts.

The information about clients’ operations and assets will NOT be revealed to the FTS of RF.

What conclusions should be drawn from these regulations?

The FTS of RF will get the information on the accounts owned by citizens of the Russian Federation or the accounts owned by legal entities directly or indirectly controlled by citizens of the Russian Federation opened in 2015, if accounts owners have not previously provided this information.

Please note, the KIT Finance Europe is not a tax agent of Russian Federation and therefore does not pays the taxes and does not file a tax return for the clients. Clients are obligated to declare their income and fill the tax return forms themselves.

In order to assist clients in the collection of information for the tax purpose, upon on your request KIT Finance Europe will provide the account statement containing all the operations on the accounts for the required period.

Information in more details is available on https://www.nalog.ru/rn77/about_fts/docs/5852454/
http://www.consultant.ru/document/cons_doc_LAW_164843/

If you have any questions please do not hesitate to contact Customer Support at clients@kfe.ee

We look forward for the mutually beneficial cooperation.