Filing deadlines for individuals reporting to the Russian tax authorities

Filing deadlines for individuals reporting to the Russian tax authorities

Individuals who are tax residents of Russia for 2022 must submit a number of reports and declarations to the tax authorities. Let us look at which documents must be filed and when, so as to avoid penalties.

It is important to remember that spending a total of more than 183 days in Russia in 2022 automatically makes a person a tax resident and means that all the reports, notifications and declarations listed below must be filed.

CFC notification

CFC stands for controlled foreign company. This document is filed by individuals — citizens of the Russian Federation who are founders of foreign companies in other countries.

Filing requires access to the individual taxpayer’s Personal Account.

The notification filing period runs from 9 January to 30 April 2023.

The following are attached to the notification:

• the foreign company’s financial statements for 2021 with a translation into Russian (no notarisation required);
• the audit report for 2021 with a translation into Russian — only if it was required by the laws of the country where the foreign company is registered.

Penalty for failure to file: RUB 500,000 for the notification, RUB 500,000 for the financial statements.

Form 3-NDFL income tax return

Filed by individuals — citizens of the Russian Federation if during 2022 they received income from the sale of property in Russia (including real estate, a car, a share in an OOO, from gifting property to a non-relative, etc.) and/or from foreign sources. The latter category includes: CFC profit exceeding RUB 10 million, income from investments abroad, salary received from a foreign company, salary from a Russian company where the work is performed abroad, income from the sale or rental of property abroad, etc.

Filing period for the return: from 09.01.2023 to 30.04.2023.

Documents confirming the income, for example a contract, are attached to the return.

Filing requires access to the Personal Account.

Penalties:

• 5% of the amount of tax payable under the 3-NDFL return for each month from 30 April; the penalty may not exceed 30% of the amount and may not be less than RUB 1,000.
• If the tax under the return is not paid by 15.07.2023, from that day interest begins to accrue — 1/300 of the Central Bank refinancing rate for each day of delay until the day the tax is actually paid.

Form 3-NDFL return for the refund of income tax from the Russian budget

Tax deductions are granted in the following cases:

• Social deductions — payment for medical treatment (of the taxpayer, their spouse, parents or children); payment for education (for themselves, a child, a brother/sister); charitable donations.
• Property tax deductions — when buying a flat, a newly built property or a plot of land.

The report must be filed between 9 January and 30 April 2023, and access to the Personal Account is required. Documents confirming the expenses (contracts, receipts for the purchase, treatment or education, etc.) should be attached to the filing.

No penalties apply, since filing the return is voluntary and in the taxpayer’s own interest.

Report on the movement of funds in foreign accounts (deposits)

This report is filed by Russian citizens who hold accounts or deposits with banks abroad.

The report filing period runs from 9 January to 1 June 2023, and access to the Personal Account is required.

A bank statement for the account for 2022 in excel format, translated into Russian (no notarisation required), is attached to the report.

Penalty for those who fail to file the report on the movement of funds on time:

• An administrative fine of RUB 2,500 to RUB 3,000 for a delay of more than 30 days from 01.06.2023.
• An administrative fine of RUB 20,000 for a repeated failure to submit the report.

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