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Currency control of electronic wallets

Currency control of electronic wallets

2 December 2020

The following duties are introduced for citizens:

  • Citizens – owners of electronic wallets – must submit rep ors on the movement of funds in such wallets to the tax authorities on an annual basis,
  • Additionally, you will need to submit a report  “on transfers” in electronic wallets to the tax authorities (only if the amount credited to the wallet exceeds 600,000 rubles for the reporting year).

A number of restrictions on the use of electronic wallets are also introduced:

  • Foreign e-wallets cannot be used to pay for goods / works / services, as well as to make transfers related to foreign trade activities or loan agreements;
  • The restrictions above will not apply to payment cards if the payment system that issued them meets the requirements for the functioning of foreign payment systems in Russia (according to the legislation of the Russian Federation on the national payment system).

New penalties

Foreign e-wallets will be subject to the same sanctions for failure to provide reports on the movement of funds, as for accounts in financial institutions:

  • 300 – 3 000 rubles for a single violation;
  • 20 000 rubles for a repeated violation;

In addition, the use of an electronic wallet without submitting a report on credits may result in a fine from 20% to 40% of the amount credited.

Scope of regulation and entry into force of the law

At the moment, even an account with PayPal can fall under the definition of “electronic wallet”, so the scope of the bill is potentially wide.

The initiative to include e-wallets in the list of reportable assets is part of two larger legislative changes:

  • Start of regulation of digital financial assets;
  • Inclusion of all “other financial assets” in the list of accountable assets;

According to the text of the draft, the changes will take effect on July 1, 2021.

You can view the entire text of the bills by following the links:

  • Draft Law No. 1049109-7 (amendments to Federal Law No. 173-FZ of 10.12.2003 “On Currency Regulation and Currency Control”) – is under consideration in the first reading;
  • Draft Law No. 1049125-7 (amendments to the Administrative Code) is under preliminary consideration.

Information provided by our partner ALTHAUS Private Tax.

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