The Federal Tax Service of Russia (FNS) fined a Russian resident for receiving money in his foreign accounts from renting real estate in Germany. This is reported by “Vedomosti”.
At the disposal of the publication there is a resolution of the Moscow Federal Tax Service on the imposition of a fine. It says that a resident of Russia (Vedomosti does not specify the exact type of residency), who owns six commercial premises in Germany, rented them out and received payment for them in a foreign currency account. The tax service considered that these operations were illegal, because the money did not come to a Russian bank. For this, the Russian resident must pay a fine in the amount of 30% of the amount of payments received.
The Federal Tax Service explains that the leasing of commercial real estate abroad by a currency resident of Russia is actually an entrepreneurial activity, as it is “aimed at systematic profit making.” At the same time, it is impossible to understand from the material of “Vedomosti” whether the activity of the fined person was registered in any way. It is only known that the document from the Federal Tax Service states that an individual entrepreneur is a company from the point of view of currency control, that is, a legal entity. Because of this, the norms that apply to legal entities were applied to the resident of Russia.
“Vedomosti” clarifies that according to the law on currency regulation, companies must conduct calculations through authorized Russian banks.
The publication interviewed lawyers and tax consultants, who stated that this is the first case of such a practice by the Federal Tax Service. According to them, if the department continues to apply it, then residents of Russia who receive income from the sale of real estate abroad may face fines in the amount of 20 to 40% of the amount of the currency transaction. In addition, those who receive money from deposits in foreign banks or securities can also be fined.
“Vedomosti” notes that since 2023, the Federal Tax Service has strengthened control over foreign operations of Russians. This is due to difficulties with the international automatic exchange of financial information, as well as the departure of some citizens from the country after the beginning of the full-scale Russian invasion of Ukraine.