At present, the State Duma is considering draft laws under which citizens will be required to report not only their foreign bank and non-bank accounts, but also any electronic wallets they hold.
The following obligations are being introduced for individuals:
Individuals who hold foreign electronic wallets will have to submit annual reports to the tax authorities on the movement of funds in such wallets,
In addition, a report on “transfers” in electronic wallets will have to be submitted to the tax authorities (only if the amount credited to the wallet exceeds RUB 600,000 in the reporting year).
A number of restrictions on the use of electronic wallets are also being introduced:
Foreign electronic wallets may not be used to pay for goods / works / services, or to make transfers related to foreign trade activities or loan agreements,
The above restrictions will not apply to payment cards if the payment system that issued them meets the requirements for the operation of foreign payment systems within Russia (pursuant to the legislation of the Russian Federation on the national payment system).
New fines
The same sanctions for failure to submit reports on the movement of funds as for accounts with financial institutions will apply to foreign electronic wallets:
RUB 300 — 3,000 for a one-time violation
RUB 20,000 for a repeated violation
In addition, use of an electronic wallet without submitting a report on credits may result in a fine of 20% to 40% of the amount credited.
Scope of regulation and entry into force of the law
At present, even a PayPal account may fall within the definition of an “electronic wallet,” so the draft law potentially has broad application.
The initiative to include electronic wallets in the list of reportable assets is part of two broader legislative changes:
The commencement of regulation of digital financial assets
The inclusion of all “other financial assets” in the list of reportable assets
According to the text of the draft, the changes will enter into force on 1 July 2021.
The full text of the draft laws can be viewed at the links below:
Draft Law No. 1049109-7 (amendments to Federal Law No. 173-FZ dated 10.12.2003 “On Currency Regulation and Currency Control”) – has already passed its first reading
Draft Law No. 1049125-7 (amendments to the Administrative Offences Code) – is under preliminary review
