Financial organizations will be obliged to determine the tax residency of certain clients

Financial organizations will be obliged to determine the tax residency of certain clients

The authorities can oblige the financial market organization to request from the client the information necessary to determine his tax residency, if it is found that he uses the organization’s services via the Internet, including through a mobile application, for at least six months and mainly from abroad . This is provided for by the project prepared by the Ministry of Finance, a source familiar with the document told Interfax.

Financial organizations will be obliged to send requests to clients after determining the client’s location, established with the help of technical means, including geolocation by network address on the Internet, geolocation by cellular networks, satellite geolocation.

The introduction of this obligation is necessary so that the Federal Tax Service timely receives up-to-date information on the tax residency of clients of financial organizations, necessary for the automatic exchange of financial information with the competent authorities of foreign countries.

The draft resolution also provides for the exclusion of the need for the organization to submit financial financial information regarding the client, who in the reporting period is a tax resident only in the Russian Federation.

It is also planned to expand the list of types of contracts that provide for the provision of financial services, to which the provisions of the Tax Code of the Russian Federation on the automatic exchange of financial information with foreign countries do not apply.

The resolution with the proposed amendments is expected to be applied one month after its official publication.

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