Russian parliament moves to extend capital amnesty

(Interfax – February 9, 2018)

The State Duma, the lower house of Russian parliament, has passed in third and final reading a package of bills extending the existing capital amnesty programme, which was proposed by President Vladimir Putin late in 2017.

In December, Putin announced that Russia’s existing programme – aimed at encouraging wealthy Russians holding assets abroad to transfer them back home – would be extended in the face of “foreign restrictions, which instead of lessening, are becoming worse”.

At the end of January, the draft law consisting of three bills were submitted to the State Duma by members of the United Russia and A Just Russia parties.

One of the bills would extend the tax amnesty on closed bank accounts in foreign banks to the period from 1 March 2018 to 28 February 2019 and preserve the guarantees for those who declared capital during the first stage of the programme – between 1 July 2015 and 30 June 2016.

The amnesty would be applied to accounts which were closed as of the date the declaration is submitted, provided that these accounts were opened before 1 January 2018. Those who declared capital during the first phase would be able to file a repeat declaration.

Another bill would exempt Russian tax residents who own liquidated controlled foreign companies (CFC) from a 13-per-cent income tax. Previously, they did not have to pay such tax only on the property of liquidated CFCs. Now the bill envisages that any asset would be exempt from taxation, including monetary funds, if the CFC were liquidated until 1 March 2019.

The third bill makes the corresponding amendments to the existing Criminal Code.