MOSCOW, February 1. Banks were offered to check the tax residence of clients by geolocation, Izvestia reports with reference to the draft government resolution prepared by the Ministry of Finance.
“If the client does not provide the requested documents, then the bank has the right to stop conducting transactions on his account, as well as terminate the agreement unilaterally,” the publication explains.
At the same time, the department told Izvestia that the decision has yet to be made not accepted.
Today, banks must request tax resident status only when concluding an agreement with a client, and if the project is accepted, such a procedure will have to be carried out on a regular basis, the article says. Moreover, in case of suspicion, banks will be obliged to check whether the client has assets in another country, said Alexey Voylukov, vice-president of the Association of Banks of Russia.
< br />“If the bank identifies signs that a person may be living abroad, they must additionally request residency documents. This information must be transferred to the Federal Tax Service. However, it is not yet clear from the draft resolution how exactly this information will need to be provided,” — clarified the head of the National Financial Market Council (NCFM) Andrey Emelin.
However, fulfilling the Ministry of Finance’s requirement may be difficult when a person uses proxy servers or VPNs. The client can also limit access rights to location information in the bank’s mobile application, the article states.
According to the Tax Code, residents are individuals who are in Russia for at least 183 calendar days over the next 12 consecutive months. You can confirm your residence using a copy of your passport with border crossing marks and a migration card.