Transfers Through Foreign E-Wallets

As part of the state program to combat money laundering, a number of changes will come into force this year, tightening control over the circulation of funds through foreign e-wallets.

First: from July 1, 2021, when using foreign electronic wallets (for example, WebMoney, PayPal, Qiwi), all residents of the Russian Federation are required to submit reports to the tax authorities on money transfers in excess of 600 thousand rubles per year:

- for individuals - annually until June 1 of the next year;

- for legal entities - on a quarterly basis.

Second: from July 1, 2021, it is prohibited to use foreign electronic wallets to receive payment for goods (work, services), the results of intellectual activity, and for other transfers related to foreign trade contracts and loan agreements.

First of all, it applies to legal entities, sole entrepreneurs and self-employed who are engaged in entrepreneurial activities: now they will not be able to accept payments from buyers using foreign electronic wallets. Thus, for conducting commercial activities abroad, Russian businesses can now use a bank account for settlements or a debit card issued in accordance with the rules of a foreign payment system.

As for individuals, at first glance, the changes will not affect ordinary purchases on the Internet, as well as receiving money from abroad (from friends, for example), however, the practice of the Federal Tax Service has not yet been formed and due to the complex wording of the new law there are concerns that the tax authorities may regard purchases by individuals using foreign electronic wallets as foreign trade transactions.

Liability:

From October 01, 2021, the law comes into force that establishes administrative responsibility for:

1)    Making transfers of funds through an electronic wallet, if prohibited by law - a fine from 75 to 100% of the amount of transferred funds;

2)    Violation of the deadlines for submitting reports to the Federal Tax Service - a warning or a fine depending on the number of days of delay:

for no more than 10 days - a warning or a fine of 300 to 500 rubles is imposed for individuals and from 5 to 15 thousand rubles for legal entities;

for more than 10 days, but not more than 30 days - a fine for individuals from one thousand to 1.5 thousand rubles, for legal entities - from 20 to 30 thousand rubles;

more than 30 days - a fine in amount of 2.5 to 3 thousand rubles for individuals and from 40 to 50 thousand rubles for legal entities.

3)    The use of e-wallets without reporting at all - a fine in amount of 20% to 40% of funds credited during the reporting period.

If you still have questions about the new rules for transfers using foreign electronic wallets, in order to avoid fines, we recommend that you contact TEAM for detailed advice on the described provisions in each specific case.