Legal news
and practices in Russia

A bill on conducting by residents of currency operations was introduced in the State Duma

The Government of the Russian Federation has submitted to the State Duma a bill on the establishment of additional permitted cases of resident currency operations in cash in foreign and Russian currencies, as it follows from the database of the lower house of parliament.

Currently, currency operations between residents and non-residents are carried out without restrictions. Settlements with non-residents in currency operations are made by resident legal entities through bank accounts with authorized banks, as well as via electronic money transfer.

The draft law establishes the possibility for Russian organizations to pay foreign citizens compensation for VAT in Russian cash currency. This will eliminate the inconsistency of the rules of tax and currency legislation on issues of compensation of VAT amounts to citizens of foreign countries when exporting goods outside the customs territory of the Eurasian Economic Union, explained earlier the Cabinet.

The list of allowed currency operations is supplemented by the operations of depositing or withdrawing cash in foreign currency by resident legal entities (participants of the budget process) whose personal accounts are opened in the Federal Treasury, through treasury currency accounts opened in authorized banks. For example, when enrolling ownerless property in state income, providing cash in foreign currency to pay travel expenses for business trips abroad and returning unused currency therein.

In addition, residents, both legal entities and individuals, are given the opportunity, without the use of accounts at authorized banks, to carry out cash currency operations related to official business trips abroad.

RIA Novosti, tks.ru, 16 July 2019