Changes in the Tax Code of Russia

article 10/01/2022

Starting from January 1st, 2022, the following amendments were introduced to the Part One of the Tax Code of Russia by the Federal Law as of 29.11.2021 №380-FL: strengthening of the administrative liability of financial market participants for the data filed by them, specification of entities, having direct or indirect control over clients or beneficiary, update of the item “financial assets”.

In particular, the new edition of the article 129.7 of the Tax Code of Russia is represented as follows:

Violation by financial market participants Fine sanctions
Failure to file the data on tax residents of foreign countries or territories; RUB 300 thousand;
Failure to include the data in relation to a single nonresident-client RUB 50 thousand for each violation;
Presentation of incomplete or unreliable data on a nonresident-client RUB 25 thousand for each act;
Willful failure to include or misrepresent the data RUB 100 thousand for each act.

Moreover, the liability for presentation of incomplete or unreliable data by the client is introduced by the new article 129.7-1 of the Tax Code of Russia

Violation by clients of financial market participants Fine sanctions
Presentation of incomplete or unreliable data in relation to themselves, beneficiaries of entities, having direct or indirect control over them; RUB 25 thousand for each violation in relation to each contract concluded between the client and the financial market participant;
Willful presentation of incomplete or unreliable data in relation to themselves, beneficiaries of entities, having direct or indirect control over them. for an individual - RUB 20 thousand, for a legal entity - RUB 50 thousand for each violation in relation to each contract, concluded between the client and the financial market participant.

Besides, the amendments specify the list of entities, having direct or indirect control over a client or beneficiary. The new statement states that they are individuals that control clients or beneficiary directly, indirectly or through the third parties (hold more than 25% interest in the capital) or are able to control their activities.

The item “financial assets” is updated. Now it also includes other assets, being the subject matter of the contract, providing financial services between the client and the financial market participant. At the same time, the following assets are not identified as financial ones for the purposes of the Chapter 16 of the Tax Code of Russia: immovable, precious metals (except for the precious metals kept on accounts, deposits or deposited for exoneration) and objects of value kept in safe deposit box.

Users of the Information and Analytical system Globas can get all the available information on all the financial market participants, both banking and nonbanking institutions.